INFORMATIONAL MEMORANDUM:  R&D-96-008.1

TO:         All Reinsured Companies
            All Risk Management Field Offices

FROM:       Tim B. Witt   /S/ TBW 3-8-96
            Director
            Research and Development Division

SUBJECT:    Malting Barley Price and Quality Endorsement
            for the 1996 Crop Year


Informational Memorandum R&D-96-008, issued March 5, 1995, described the new 
Malting Barley Price and Quality Endorsement available for the 1996 and 
succeeding crop years.  This memorandum provides additional information 
regarding the sale of the new endorsement and clarification of the process 
used to establish the malting barley production guarantee under Option B.

Federal Crop Insurance Corporation (FCIC) is offering the new Malting Barley 
Price and Quality Endorsement as a new insurance product for the 1996 crop 
year.  For the 1996 crop year only, the previous Malting Barley Endorsement 
will also remain available.  As indicated in the final rule, there is no 
requirement for any insurance provider to offer the new endorsement.

Item 4 of Informational Memorandum R&D-96-008 outlines a method by which the 
malting barley production guarantee under Option B may be computed.  However, 
the definition of "potential production" is not included in the endorsement 
as the informational memorandum indicates.  For the purpose of computing 
this production guarantee, "potential production" will be the number of 
bushels that results from multiplying the number of acres planted to approved 
malting varieties by the actual production history (APH) yield per acre that 
applies to the acreage.  For example, assume that a producer plants 40 
non-irrigated acres with an APH yield of 30 bushels per acre, and 30 
irrigated acres with an APH yield of 60 bushels per acre.  The "potential 
production" would be 3,000 bushels ((40 x 30) + (30 x 60)).