INFORMATIONAL MEMORANDUM:  R&D-96-051

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: Arizona-California Citrus Crop Insurance Provisions


Attached is the Arizona-California Citrus Crop Provisions.  These provisions
are effective for the 1998 and succeeding crop years.  Following is a brief
description of the significant changes to these provisions.  Please refer 
to the provisions for more complete information.

Section 3(b) specifies that in lieu of reporting citrus production of 
marketable fresh fruit for the previous crop year as required by the Basic 
Provisions, there is a lag period of one year.  This provision was included 
because all of the citrus will not be harvested until after the production 
reporting date.  

Section 5 changed the cancellation and termination dates from November 30 to
November 20.

Section 6(e) and 10(a) adds provisions to make citrus sold by direct 
marketing insurable if allowed by the Special Provisions or by written 
agreement.  The producer must give notice at least 15 days before any 
production from any unit will be sold by direct marketing.

Section 7 makes citrus interplanted with another perennial crop insurable 
unless the insurance provider inspects the acreage and determines it does not
meet the requirements contained in the producer's policy.

Section 8(a)(1) specifies that insurance coverage begins on November 21 of
each crop year, except that for the year of application if the producer's
application is received after November 11 but prior to November 21, insurance
will attach on the 10th day after the properly completed application is 
received in the insurance providerūs local office, unless the insurance 
provider inspects the acreage during the 10 day period and determines that it 
does not meet insurability requirements. 

Section 8(b)(1) specifies that if the producer acquires an insurable share in 
any insurable acreage after coverage begins, but on or before the acreage 
reporting date for the crop year, and after an inspection the insurance 
provider considers the acreage acceptable, insurance will be considered to 
have attached to such acreage on the calendar date for the beginning of the 
insurance period.

Section 8(b)(2) specifies that if the producer relinquishes an insurable 
share on any insurable acreage of citrus on or before the acreage reporting 
date for the crop year, insurance will not be considered to have attached to, 
and nopremium will be due and no indemnity paid for such acreage for that 
crop year unless a transfer form is completed by all affected parties, the 
insurance provider is notified in writing on or before the acreage reporting 
date, and the transferee is eligible for crop insurance.

Section 9(a)(6) specifies that failure of the irrigation water supply must be
caused by an insured peril that occurs during the insurance period. 

Section 9b)(1) specifies that damage or loss of production due to disease or
insect infestation, will not be insurable unless adverse weather conditions
prevents the proper application of control measures, causes properly applied
control measures to be ineffective, or causes disease or insect infestation 
for which no effective control mechanism is available.

Section 12 adds provisions for providing insurance coverage by written 
agreement.

Attachment - will follow in the mail