BULLETIN NO.:  MGR-98-022

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

FROM:    Kenneth D. Ackerman /s/  08/17/98
         Administrator

SUBJECT: Approved Appraisal Deviation for 1998 Crop Year Non-irrigated Cotton 

BACKGROUND:

The current drought in the States of Alabama, Florida, Georgia, New Mexico, Oklahoma, and
Texas has had a severe impact on the nonirrigated cotton crop.  Even though many areas of these
States have received some rain, certain areas have not received sufficient "sustained moisture"
for the plants to recover.  "Cutout" occurs when extreme hot dry conditions have provided poor
growing conditions which resulted in stunted plants with limited root systems unable to sustain
plant development or regrowth.  The bolls are smaller and contain fewer seeds per lock than
under normal growing conditions resulting in less lint per boll and lower yields after ginning.

ACTION:

Due to the conditions as described above, the number of bolls required to produce one pound of
lint cotton will vary according to their size.  A boll count appraisal deviation is approved,
effective immediately, ONLY for cotton insured under a non-irrigated practice.  For the purpose
of administering this deviation, all bolls present at the time of the appraisal must be counted. 

1   For Alabama, Georgia, and Florida: use 400 bolls per pound of lint and a factor of "4" in
    item 57 of the appraisal worksheet.  Additionally, in these States this deviation may be
    used ONLY on cotton acreage that has NOT had any plant regrowth and has completed
    what is commonly referred to as "cutout."

2   For New Mexico, Oklahoma, and Texas: use 400 bolls for immature green and unopened
    bolls for one pound of lint cotton and a factor of "4" in item 57 of the appraisal
    worksheet.  Open bolls will be counted according to existing procedure.  This deviation
    applies to all drought affected acreage in these States.  

Insurance providers are to document the use of this bulletin to support the appraisal deviation.

DISPOSAL: This Bulletin is effective until January 31, 1999.

 
RMA:R&D:PDD/dd:8/13/98:seblct.wpd
Revised:RMA:IS:CUSD:MHand:08/16/98:690-2499:wp-bolldev8
Revised:RMA:IS:CUSD:MHand:08/17/98:690-2499:wp-bolldev8
Final:RMA:R&D:PDD:DWright/dd:8/17/98:cottndev.wpd
 
cc: Bulletin Distribution