April 10, 1995

INFORMATIONAL MEMORANDUM: R&D-95-016

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

FROM:     Tim B. Witt               /s/ TIM B. WITT
          Acting Director
          Research and Development Division

SUBJECT:  Insurability of Nursery Crops Grown in Nursery Containers Buried 
          in the Ground


ISSUE:

Questions have been raised regarding insurance eligibility for nursery crops 
grown in qualifying nursery containers that are buried in the ground either 
directly or when placed on liners which are buried in the ground.

DISCUSSION:

Section 1.(b)(1), (b)(4), and (b)(9) (Insured Crops) for nursery states, 
"We do not insure any nursery crops which:

(1)  are not grown in standard nursery containers;
(4)  are grown in the field; or
(9)  are not grown in accordance with the production practices for which 
     premium rates have been established."

FCIC nursery crop premium rates are based on standard rigid containers that 
are at least 3 inches across the smallest dimension and on plants that are 
not grown in the field.  FCIC has administered the nursery program on this 
basis.

ACTION:

Any nursery crops planted in containers that are buried in the ground, either 
directly or when placed on liners that are buried in the ground, are not 
insurable.