BULLETIN NO.: MGR-98-012 TO: All Reinsured Companies All Risk Management Field Offices FROM: Kenneth D. Ackerman /s/Kenneth D. Ackerman 5-18-98 Administrator SUBJECT: Reporting Requirements for the 1998 Hybrid Seed Corn and Hybrid Sorghum Seed Crop Provisions BACKGROUND: The Risk Management Agency (RMA) recently issued new Hybrid Seed Corn and Hybrid Sorghum Seed Crop Provisions for the 1998 crop year. Section 6(a) of these crop provisions states that, in addition to the acreage reporting requirements of the Basic Provisions, the insured must report by type and variety the location and insurable acreage of the insured crop. Reporting by crop variety is a new requirement. Reinsured companies have expressed concern that this new requirement is not needed because: 1) the grower seldom knows the variety planted; 2) seed companies already report yield information to the Regional Service Offices (RSO) to determine the approved yield for each variety; 3) the approved yield is only needed when adjusting a crop loss, and 4) seed companies seek to limit the amount of information they divulge about their seed varieties under production by protecting the confidentiality of planting and production records. Section 6(b) of the crop provisions requires the insured to report any acreage that is uninsured, including acreage occupied by male parent plants. There could be instances when, during loss adjustment, the amount of male acreage has to be determined. Section 12(f) of the Hybrid Seed Corn Crop Provisions changed the moisture adjustment level of shelled hybrid seed corn from 15.5 percent to 15 percent. This change was made to standardize the hybrid seed corn moisture adjustment levels with those for commercial field corn. ACTION: Beginning with the 1998 crop year, the reporting requirements contained in: 1) section 6(a) pertaining to crop variety and 2) section 6(b) pertaining to uninsured acreage occupied by male parent plants are liberalized. Insureds need not report the crop variety or the acreage occupied by male parent plants on the acreage report. Hybrid seed corn companies may continue to report production at the 15.5 percent moisture level, specifying it as such on the reporting form, and the RSOs will make the proper adjustments. For loss adjustment purposes, the 15 percent moisture level for shelled corn contained in the "Hybrid Corn Seed Moisture Adjustment Table" of the Hybrid Seed Loss Adjustment Standards Handbook must be used. CC: FCIC COMPLIANCE OFFICES FCIC REGIONAL SERVICE OFFICES CFSA (ATTN: JOHN STENCEL, FAX: 202-690-2823; PH: (202) 690-2807, RM. 3096 - S MANDY WELTON, FAX: 202-205-2953; PH: (202) 720-6803 DIANE SHARP, FARM PROGRAMS, FAX: (202) 690-2130 NATIONAL CROP INSURANCE SERVICES AMERICAN ASSOCIATION OF CROP INSURERS CROP INSURANCE RESEARCH BUREAU NATIONAL ASSOCIATION OF CROP INSURANCE AGENTS NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS LINDA VICKERS HAWKINS, HAWKINS, AND BURT ATTN: DAVID BURT - FAX 904-258-1311 501 SOUTH RIDGEWOOD AVENUE DAYTONA BEACH, FL 32114 CC: K. ACKERMAN IS - PLEASE ROUTE MGR/CHRON DAM-RSO SDITTRICH CHIEF/FUS - PLEASE ROUTE MMULUGETA CHIEF/CS - PLEASE ROUTE HBAKER/RSLB - PLEASE ROUTE GWESTMORELAND/RCD--PLEASE ROUTE LDITTUS/ENAP - PLEASE ROUTE CC: KANSAS CITY OFFICES: TWITT/R&D--PLEASE ROUTE TIM HOFFMANN - PRODUCT DEVELOPMENT BRANCH VONDIE O'CONNER, RESEARCH AND EVALUATION BRANCH LARRY STIFFLER, ACTUARIAL BRANCH DENISE HOFFMANN, FISCAL OPERATIONS AND SYSTEMS BRANCH AGILMORE/AMC-PLEASE ROUTE RMA/R&D/PDD:RonNesheim:emp:816/926-7387:4/16/98:hyb-mgr.wpd FINAL:RMA:adw:720-5290\5-14-98