INFORMATIONAL MEMORANDUM:  R&D-96-036

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

FROM:     Tim B. Witt
          Director
          Research and Development Division
                     
SUBJECT:  Crop Revenue Coverage Wheat Pilot Program and Small Grains
          Quality Adjustment  Revisions for the 1997 Crop Year
                     
ISSUE:

Quality adjustment determinations for small grains (barley, flax, oats, rye 
and wheat) have been revised beginning with the 1997 crop year.  The same
quality adjustment determinations used for wheat, will also be used for Crop
Revenue Coverage (CRC) Wheat Pilot Program.  The purpose of this Informational 
Memorandum is to advise appropriate parties of the details of this revision.

DISCUSSION:

Informational Memorandum R&D-94-046 indicated that work would continue toward 
expanding the coarse grains quality adjustment approach to other crops as 
soon as possible. Feedback regarding the coarse grains quality adjustment 
revisions for the 1995 crop year has been very positive, and the small grains
quality adjustment revisions are now being implemented for the 1997 crop year.

Please refer to the Special Provisions statements for barley, flax, oats, rye 
and wheat (wheat quality adjustment statements are applicable to CRC Wheat 
Pilot Program) for the 1997 crop year.  The statements describe how the 
quality adjustment factor is determined and applied.  

SUMMARY:

All insurers are to advise their insureds, agents, loss adjusters, and other
appropriate personnel of these changes for the 1997 crop year.