BULLETIN NO.:  MGR-95-048

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

FROM:    Kenneth D. Ackerman
         Deputy Administrator

SUBJECT: Notice of Specialty Crops under Research for 1996

BACKGROUND:

The Federal Crop Insurance Corporation (FCIC) will begin research studies in 
the 1996 fiscal year on the specialty crops listed below.  The purpose of the 
crop research studies is to assist the Corporation in determining the 
feasibility of formulating crop insurance policies for new crops and to 
address the needs of specialty crop producers as expressed in the Federal Crop 
Insurance Reform Act of 1994. 

New crop research follows the procedure outlined in the New Crop Program 
Development Handbook (FCIC 23010).  A copy of the Handbook is available by 
request from the Office of Risk Management's Research and Evaluation Branch. 
New crop requests from growers and interested parties are evaluated using 
criteria in the handbook. To assist in this process, preliminary feasibility
reports are prepared examining the costs and benefits associated with 
offering insurance on these specialty crops, risk management alternatives 
available to producers by region, and the potential problems associated with 
developing a viable insurance program.  FCIC staff then evaluate risk 
profiles, availability and sufficiency of actuarial data, agronomic and 
horticultural suitability, and marketing dynamics.  If a decision is made to 
proceed with development of an insurance product for the new crop then a 
field review and final feasibility study are completed. This covers all 
insurance functions necessary for a new product, including policy, rates, 
claim procedures,marketing and training.  Final development of a new crop 
program is tested with apilot program offered in a limited area for a period 
of two or more years, followed with a post-pilot recommendation for or 
against conversion of the pilot to permanent program status.

For Fiscal Year 1996, research studies will begin on the following crops and 
crop groups:


Aquaculture                Beets
Buckwheat                  Chili Peppers
Crambe                     Garlic
Nut & Nut Trees            Olives    
Sesame Seed                Tart Cherries             
Artichokes                 Cabbage
Pumpkin & Squash           Cucumbers
Eggplant                   Spinach
Fresh Market Snap Beans
Citrus/Tropical Fruit & Trees

Preliminary feasibility reports on the crops listed below are now available 
and can be obtained from Vondie W. O'Conner, Jr., Chief, Research and 
Evaluation Branch, P.O. Box 419293, Kansas City, Missouri  64141.  Telephone
(816) 926-6343.

Asparagus  Avocados     Broccoli    Cantaloupe
Carrots    Cauliflower  Celery      Cherries     
Hay        Honeydew     Christmas Trees
Hops       Lettuce      Millet
Mints      Mushrooms    Nursery Crops  
Pecans     Pineapple    Pistachios
Strawberries            Sweet Potatoes    
Watermelon Turfgrass Sod
Forage & Turfgrass Seeds

ACTION:
Proposals for additional crops to study, comments on the crops named, and 
requests for the New Program Development Handbook (FCIC 23010) can be 
forwarded to Risk Management at the address listed above.