INFORMATIONAL MEMORANDUM: R&D-96-035  
      
TO:       All Reinsured Companies
          All Risk Management Field Offices
          FSA Headquarters, Program Delivery 
          & Field Operations

FROM:     Tim B. Witt /s/
          Director 
          Research and Development Division
                    
SUBJECT:  Issuance of the 1997 FCIC 18010 Crop Insurance Handbook
                    
BACKGROUND:
                    
For the 1997 crop year, changes have been made to underwriting,
administrative, and Actual Production History (APH) procedures/calculations
for the Federal crop insurance program. The Federal Crop Insurance 
Corporation (FCIC) is transmitting these changes for limited and additional 
coverage via the 1997 FCIC 18010 Crop Insurance Handbook (CIH).  The same 
changes will be made, as applicable, to the FCIC 18100 Catastrophic Risk 
Protection (CAT) Handbook, to be issued shortly.  Changes not applicable 
to CAT coverage are marked (NACAT) in the summary of changes.

Summary of Changes:
                    
Section 4
                    
--Removes Highly Erodible Land (HEL) and Wetland
--Conservation (WC) compliance verification requirements.
--(NACAT)  Modifies the required written agreement request statements.
                    
Section 5
                    
--Outlines that program yields for crop insurance purposes will be taken from
  the Farm Service Agency (FSA)-423.
--Authorizes insurance providers to determine approved APH yields for
  blueberries in Michigan.
--Removes the use of cups or caps when the program yield and/or 
  Transitional Yield ("T" Yield) changes by 10 percent or more when "T" 
  yields are used in the approved APH yield calculation.
--Implements the use of simple average program yields to determine "T" 
  Yields if more than one FSA farm serial number is contained in a unit.
--Reserves a section for pilot county "T" Yield procedures for new 
  producers pending analysis and approval on whether or not to continue 
  the pilot program.
--Clarifies the acres and production to be used for APH purposes when 
  acreage is bypassed/unharvested.
--Updates sugarcane instructions to determine pounds of raw sugar used 
  for APH.
--For perennial crop acreage tolerance review purposes, does not require 
  a new inspection if the latest field inspection is not more than 5 
  years old. 

Exhibit 6
                    
--(NACAT) Authorizes insurance providers to approve initial potato 
  Master Yields in Minnesota. 

Exhibit 11
                    
--(NACAT)  Authorizes insurance providers to approve written agreements 
  for non-irrigated corn for grain when only irrigated corn for grain is 
  listed on the actuarial table, overage stands of forage production, 
  and unrated NIBR practice sunflowers.
                    
Exhibit 16
                    
--Modifies the Producer's Pre-acceptance Worksheet outlining that the
  insurance provider must obtain the required information, perform an
  inspection, or deny coverage if the worksheet is not completed in an
  acceptable manner by the insured.
--Clarifies that perennial crop approved APH yields will be calculated 
  using total production and total acres if separate block production is 
  not certified.  Updates several examples to more clearly illustrate 
  these requirements.
--Adds blueberries in Michigan to the APH instructions.
                    
Exhibit 17
                    
--A chart has been added that illustrates FSA rules for skip-row planting
  patterns.
                    
Exhibit 22
                    
 --(NACAT)  Removed the instructions for the 95-91A Malting Barley
   Endorsement.  It is not available for the 1997 crop year.
                    
Exhibit 33
                    
--(NACAT) Removed the pilot county instructions for air-seeded soybean 
  written agreements.
                    
Exhibit 36
                    
--Charts have been added to clarify added land/practice/type/variety
  procedures.
--For determined irrigated yields, bases irrigated "T" Yield reference 
  factors on the years of actual yields contained in the reference 
  unit's database.

ACTION:
                    
Attached is the approved 1997 FCIC 18010 Crop Insurance Handbook.  It is 
to be used in the administration of limited and additional coverage 
Federal crop insurance policies for the 1997 crop year; however, 
insurance providers may use the provisions that are also applicable to 
CAT coverage until the 1997 CAT Handbook is issued. Changes, additions, 
or corrections to the text are shaded to aid in identifying the changes.  
The CIH will be placed on the Reporting Organization Server in 
WordPerfect 5.1.  An informational memorandum from the Actuarial Branch 
will announce when it is available.  If you do not have access to the 
Reporting Organization Server, a set of disks containing the CIH is 
available in WordPerfect 5.1 upon request.  If you have any questions 
about the CIH, please contact the Product Development Branch at 
(816) 926-7743.

Attachment - Will be mailed