INFORMATIONAL MEMORANDUM:  R&D-95-039

TO:      All Reinsured Companies
         All Risk Management Field Offices
         CFSA Headquarters, Program Delivery and Field Operations
         State and County Offices (authorized to provide limited and 
         additional coverage Multiple Peril Crop Insurance policies)

                          R. E. Waggoner  8/31/95 for     
FROM:    Tim B. Witt    
         Acting Director
         Research and Development Division
              
SUBJECT: 1996 FCIC 18010 Crop Insurance Handbook

Attached is the Office of Risk Management/Federal Crop Insurance 
Corporation's (FCIC) approved 1996 Crop Insurance Handbook (CIH).  The 
provisions and procedures contained in this handbook are approved for use by 
reinsured companies and the Consolidated Farm Service Agency (CFSA) to accept 
applications, underwrite, and service limited and additional coverage 
policies (policies with coverage greater than provided at the 50 percent 
coverage level and 60 percent of the expected market price).

The following procedures which were implemented for the 1995 crop year by 
Informational Memorandums:  R&D-94-057 and R&D-95-008 have been incorporated 
into the CIH:

1    High-Risk Land Exclusion.  See Section 4, Par. E(2)(a).

2    Pilot County Transitional ("T") Yields for New Producers.  See 
     Section 5, Par. D(2)(d)3.

3    Feed or Forage Grown for On-farm Use.  See Section 5, Par. D(2)(e).

4    Category C, Perennial Crops.  See Section 5, Par. E and Exhibit 16, 
     Par. 3-9.

5    Entities:  Definition, Determination, and Documentation.  See Exhibit 32.


SUMMARY OF PROCEDURAL CHANGES:

Section 4:

1    Prevented Planting.  B(4):  Reserved, amendments will be issued at a 
     later date.

2    Levels of Coverage.  C(3):  Additional levels of coverage are available.

3    Price Elections.  C(4):  Price elections of less than 60 percent of the 
     established or market-based price election are no longer available.

4    Non-Irrigated Corners (Center Pivot).  C(5)(d)2 f:  Non-irrigated 
     corners of a center-pivot irrigation system may be considered part of 
     the irrigated unit.  Other non-irrigated acreage may qualify as a 
     separate non-irrigated optional unit.

5    Applications.  D(1)(d):  Removed late-filed application procedures 
     related to lending institution requirements.
 
6    Written Agreements.  E(1):  Revised crop inspection requirements for 
     insurance providers and included a new statement required on written 
     agreement requests.

Section 5:

7    Responsibilities.  C(1)(f), C(2)(e), and C(3)(k):  Updated 
     reconsideration and appeal responsibilities to agree with National 
     Appeal Division (NAD) Regulations.

8    Yield Limitations.  D(11)(f) and E(10)(f):  (Also refer to Section 10.)  
     Clarified that cups and caps do not apply the first effective crop year 
     insureds are classified by the Nonstandard Classification System (NCS) 
     or the crop year the NCS classification is removed.  Cups do not apply 
     for subsequent crop years while insureds are classified by NCS; however, 
     caps will apply.  
 
9    Small Grains.  D(17)(l)13:  APH changed for an added Summer Fallow 
     Practice.

Section 7: 

10   Supporting Evidence/Production Reports for Optional Units.  C(3):  
     Clarified that supporting evidence/production reports are required to 
     qualify for optional units.  Added instructions for prorating acres and 
     production for previous crop years.

11   Field Visits.  D:  Clarified when insureds should request appraisals 
     for APH purposes.

Section 8:

12   Reconsiderations, Appeals, and Cancellation.  Rewritten to be consistent 
     with NAD Regulations.

Exhibit 6:

13   Master Yield.  1E(1):  Individual Determined Yields (IDY) are now based 
     on 100 percent of the applicable "T" Yield or calculated by using a 
     percentage of the applicable "T" Yield determined by the number of years 
     of actual and/or assigned yields that are contained in the reference 
     Master Yield database.

Exhibit 36:

14   Added Land/Practice/Type/Variety (P/T/V).  1C:   Special "T" Yield 
     procedures for added land/P/T/V no longer apply to insureds classified 
     by NCS.  1D(1):  Clarified the term "existing unit" for new insureds and 
     liberalized the acreage comparison percentages for simplification.

15   1D(3):  Clarified when Insurance Providers are authorized to combine 
     added land with an existing unit.

The previously issued 1995 Catastrophic Risk Protection (CAT) Handbook will 
continue to apply to 1996 crop year CAT coverage policies.  The CAT Handbook 
will be amended to reflect minor revisions to the Catastrophic Risk 
Protection Endorsement and the procedural changes indicated in items 5, 7, 8,
9, 11, 12, 14, and 15 above.   The amendments will be issued soon.


(The Crop Insurance Handbook can be found in the Miscallaneous_Files 
directory as hndbook1.zip & hndbook2.zip).