BULLETIN NO.: MGR-98-015

TO:       All Reinsured Companies
          All Risk Management Offices
          All Other Interested Parties

FROM:     Kenneth D. Ackerman /s/ Kenneth D. Ackerman   6/17/98
          Administrator

SUBJECT:  Authorization to Use the Appraisal Deviation for Smut Infected Sugarcane in
          Texas for the 1998 Crop Year

BACKGROUND:

Stem or culmicolous smut (Ustilago Scitaminea Syd.) has again been identified in sugarcane
fields in the Texas Lower Rio Grande Valley.  The presence of the smut disease in sugarcane
fields precludes harvest and as a result, acreage is being designated by the mill to be 
destroyed.  Additional acreage may be rejected as fields are identified through the 
remainder of the harvest season.

ACTION:

Companies are authorized to use the Appraisal Deviation for Smut Infected Sugarcane 
contained in Section 15 of the FCIC-25460, Sugarcane Handbook.  This authorization 
applies to sugarcane acreage in Cameron, Hildalgo, and Willacy counties for the 1998 
crop year only, until harvest of the 1998 crop year sugarcane is complete.

This authorization does not apply to any acreage that was appraised, released, and 
indemnified during the 1997 crop year for the same cause of loss. 

Smut will not be considered as an insured cause of loss for any sugarcane crop 
indemnified for smut during the 1997 crop year that was released but not destroyed.