BULLETIN NO.: MGR-95-036

TO:      All Reinsured Companies
         All Risk Management Field Offices
         CFSA Headquarters, Program Delivery and Field Operations

FROM:    Kenneth D. Ackerman
         Acting Deputy Administrator For Risk Management

SUBJECT: Liberalization of the Coarse Grains Crop Provisions for the 1995 
         Crop Year Only regarding Loss Adjustment Procedure for Corn insured 
         as Grain but harvested as Silage


BACKGROUND:

The Coarse Grains Crop Provisions and Corn Handbook require that harvested 
production to count for corn acreage insured as grain but harvested as silage 
be based on the harvested silage production.  The Federal Crop Insurance 
Corporation (FCIC) has received numerous requests to reconsider this position.


ACTION:

This bulletin invokes the liberalization provisions contained in section 5 of 
the Common Crop Insurance Policy.  For the 1995 crop year only, production to 
count for acreage insured as grain but harvested as silage will be 
determined as follows:

1)  Any insured who intends to harvest silage from acreage insured as corn 
    for grain must notify the insurance provider of this intention before 
    harvest.  Insureds are to be immediately advised of their responsibility 
    to notify their insurance provider if they intend to harvest silage from 
    any corn acreage insured as grain.  Upon notice, grain appraisals will be 
    made to determine production to count, consistent with the way such 
    determinations were made for the 1994 crop year.  

2)  FCIC is authorizing either grain appraisals or harvested grain yields 
    from neighboring fields representative of the acreage to determine 
    production to count, for any insured who harvested silage from any corn 
    acreage insured as grain, provided the insured did not request a grain 
    appraisal or did not leave representative unharvested samples.  This 
    authority is limited as set forth in item 3 below.  Appraisals made by 
    other insurance companies or the Consolidated Farm Service Agency (CFSA) 
    on neighboring fields may be used for this purpose.

3)  Any corn indemnity already paid/completed for an insured who harvested 
    silage from any corn acreage insured as grain may be reopened by the 
    insurance provider for the 1995 crop year to make the following 
    adjustments: 

    a)   If the insured was not advised prior to harvest that a grain 
         appraisal was necessary, use either grain appraisals or harvested 
         grain yields from representative neighboring fields.  Insurance 
         providers must maintain complete records of these situations and 
         place such documentation in the insured's file.

    b)   If the insured was advised prior to harvest that a grain appraisal 
         is necessary, and the insured did not request a grain appraisal, or 
         did not leave two or more representative unharvested strips per 
         field if authorized to do so, such acreage will be considered put 
         to another use without consent.  Appraised production for such 
         acreage will not be less than the production guarantee.