This pane is on the MODFLOW Features tab of the Object Properties dialog box.
If there are cells declared as FALLOW/BARE then BARE_RUNOFF_FRACTION determines the fraction of runoff to infiltration for precipitation that falls on bare soil/fallow land.
BARE cells result for model cells not defined by a land use/crop ID (CID < 1) or if the sum of crop fractions for a cell do not sum to 1.
If not specified, BARE_RUNOFF_FRACTION is automatically set to 1.0 to disable any infiltration from precipitation over bare soil.