INFORMATIONAL MEMORANDUM:  R&D-96-003

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

FROM:     Tim B. Witt        /s/ Tim B. Witt 1-16-96
          Director
          Research and Development Division

SUBJECT:  Income Protection Pilot Program


The Federal Crop Insurance Corporation (FCIC) has received approval to offer 
a pilot Income Protection plan of multiple peril crop insurance (MPCI).  
The Income Protection pilot program will be offered for the 1996 and 1997 
crop years.  For the 1996 crop year, the pilot program will be available for 
three crops in the following states and counties: 

Corn               Illinois:     Champaign, Ford, Iroquois, Livingston,    
                                 and McLean
                   Indiana:      Benton, Fountain, and Warren
                   Iowa:         Adair, Audubon, Cass, Dallas, Guthrie, 
                                 and Shelby

Cotton             Alabama:      Autauga, Lawrence, Limestone, and Madison
                   Georgia:      Brooks, Colquitt, Dooly, and Worth

Spring Wheat       Minnesota:    Kittson, Marshall, Polk, and Roseau
                   N. Dakota:    Grand Forks, Pembina, and Walsh

Income protection is available only as additional coverage available through 
an approved crop insurance agent.  A catastrophic (CAT) level of coverage is 
not available under the Income Protection plan.  Coverage for the 1996 crop 
year must be purchased before March 15, 1996.  The Income Protection plan 
of MPCI meets the crop insurance linkage requirement to be eligible for 
certain other Department of Agriculture program benefits.

The crop provisions, special provisions, disclaimer, underwriting procedure, 
and loss procedure are attached. Attached are rate examples for each crop 
and county because the Income Protection rate is calculated by software.  
Crop insurance agents will need a computer capable of running the Income 
Protection software to quote Income Protection premiums.  The Income 
Protection software needed by crop insurance agents who want to sell Income 
Protection is available on the Reporting Organization Server in the 
Income_Protection directory.  

If you have any questions about this pilot program, please contact 
Vondie O'Conner at (816)-926-6343 or by fax at (816)-926-7343.

Attachment - Hard copy will be mailed