INFORMATIONAL MEMORANDUM:  R&D-95-053

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

FROM:     Tim B. Witt           /s/ Tim B. Witt     12/15/95
          Director
          Research and Development Division

SUBJECT:  Supplementary Standards for Adjusting Losses on
          Bush Varieties of Garden Seed Beans


BACKGROUND:

Current multiple peril crop insuurance loss adjustment standards and
procedures do not  provide appropriate instructions for determining 
the production to count for bush varieties of garden seed beans. 
The standards below are provided to supplement current loss
adjustment standards and procedures applicable to 1995 crop year
losses for 15 counties in Idaho, Oregon, and Washington where bush
varieties of garden seed beans are insured. 

ACTION:

Loss adjusters shall adjust production of bush varieties of garden
seed beans (bush beans) as follows in lieu of the instructions for
determining appraised and harvested production in the Dry Bean
Handbook.

1  Determine separately for MATURE appraised potential production
   and harvested production, the value of production by variety on a
   line basis as follows:

   For both clean seed production and production which is not clean
   seed, add the amount received for sold production to the dollar
   value of unsold production (nearest whole dollar for each).

2  Divide the value of production by the contract price to determine
   the whole pounds of clean seed equivalent.

3  Enter the whole pounds of clean seed equivalent for MATURE
   appraised production or harvested production in the appropriate
   item of a Federal Crop Insurance Corporation (FCIC) approved
   claim form.

   NOTE:  Do not enter dockage for such production, as the
   production will have been adjusted to clean seed equivalent.

4  Enter, in the appropriate item of an FCIC-approved claim form,
   the pounds of any IMMATURE appraised production as clean seed
   equivalent, determined as follows:

   (a)Multiply the gross pounds per acre of IMMATURE appraised
      production, by the seed company's historical average gradeout
      percentage, for the variety, to calculate the determined
      pounds of clean seed production.  The remaining appraised
      production is the determined pounds of production which is not
      clean seed.

   (b)Convert the determined pounds of production which is not clean
      seed to clean seed equivalent by multiplying the pounds of
      such seed by a factor obtained by dividing the value of such
      beans, by the contract price.  Add the resulting pounds to the
      determined pounds of clean seed to obtain the determined
      pounds of clean seed equivalent, to be entered in the
      appropriate item on the claim form.

      EXAMPLE:
      Assume:
      Appraised immature production               = 200 lbs./acre
      Company's historical ave. percentage        = 80%
      Contract price (for clean seed)             = .20/lb.
      Price for not clean seed                    = .05/lb. 
      (25% of the contract price as stated 
      in producer contract)

      200 lbs. prod. x 80% gradeout               = 160 seed/acre
      200 lbs. prod. - 160 lbs. clean seed        = 40 lb. not clean
                                                    seed/acre
      .05 ö .20                                   = .25 factor
      40 lbs. not clean seed  x .25               = 10 lbs.
                                                    determined clean
                                                    seed equivalent/
                                                    acre
      160 lbs. determined clean seed  + 10 lbs.  
      determined clean seed equivalent            = 170 lb. 
                                                    determined clean
                                                    seed equivalent/
                                                    acre for acreage

5  Include in the narrative a statement which indicates the
   production values, contract prices, and calculations used to
   determine the pounds of clean seed equivalent as provided above.