BULLETIN NO.:  MGR-98-005

TO:    All Reinsured Companies
     All Risk Management Field Offices

FROM:  Kenneth D. Ackerman  
     Administrator

SUBJECT:  1998 Forage Production Expansion - Montana


BACKGROUND:

The Federal Crop Insurance Corporation (FCIC) has expanded nonirrigated forage production
insurance into 21 Montana counties where, previously, only irrigated forage production or GRP
forage insurance were insurable.

The 21 counties are:  Broadwater, Chouteau, Custer, Fallon, Flathead, Glacier, Granite, Jefferson,
McCone, Meagher, Musselshell, Pondera, Powell, Ravalli, Richland, Roosevelt, Sanders,
Stillwater, Sweet Grass, Wheatland, and Yellowstone.

Producers who fail to purchase at least Catastrophic Risk Protection (CAT) level of insurance
coverage for forage production or fail to sign a waiver of any eligibility for emergency crop loss
assistance for the crop will not be eligible for other USDA program benefits including:
a) benefits under the Agricultural Market Transition Act (AMTA); 2) loans or any other USDA
provided farm credit identified in the regulations; and 3) benefits under the Conservation Reserve
program (CRP).

Acreage that meets the insurability requirements for Multi-Peril Crop Insurance (MPCI) in
counties where both irrigated and nonirrigated forage production insurance is available will not be
eligible for protection under the noninsured assistance program (NAP).

ACTION:

The sales closing date for forage production in these counties is March 15, 1998.  Since the sales
closing date for forage production with the Winter Option was September 30, 1997, the Winter
Option will not be available to new applicants for the 1998 crop year.  Insurance providers should
advise producers of the expanded forage production insurance to allow them the opportunity to
purchase crop insurance.

Mutual consent cancellations will be allowed for producers currently having GRP forage policies
who wish to purchase MPCI buyup coverage on forage.