INFORMATIONAL MEMORANDUM: R&D-96-025

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

FROM:      Tim B. Witt
           Director
           Research and Development Division

SUBJECT:   Reactivation of FSA-423's


BACKGROUND:

State and local Farm Service Agency (FSA) offices were instructed by Notice 
RM-144 not to distribute 1996 FSA-423's to insurance companies and producers.  
As a result of this notice, the FSA software program that generated the 
FSA-423 was disabled for 1996.  Therefore, producers and insurance providers 
were unable to obtain program yield and cropland acreage information needed 
to establish Actual Production History.

ACTION:

On June 7, 1996, FSA issued Notice RM-160 informing local FSA offices that 
the software program that generates the FSA-423 would be reactivated.  For 
all 1996 crop year policies, insurance companies and producers may obtain the 
FSA-423 containing the program yield and cropland acreage information (by 
practice, if applicable) from the local FSA office.  The FSA Historical 
Weighted Average Yield (HWY Yield) or the adjusted yields are not acceptable 
for crop insurance purposes. Refer to the 1996 FCIC 18010 Crop Insurance 
Handbook or 1996 FCIC 18100 Catastrophic Risk Protection Handbook for 
appropriate procedures.

Attachment