INFORMATIONAL MEMORANDUM:    R&D-96-053
     
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: 7 CFR PART 400 - Subpart T - General Administrative Regulations
     
     
Attached is 7 CFR PART 400 - Subpart T - General Administrative Regulations, 
which conform with the requirements of the Federal Crop Insurance Reform Act 
of 1994 (Reform Act) and the Federal Agriculture Improvement and Reform Act 
of 1996 (1996 Act).  Any of the provisions in these regulations that have not 
already been implemented by Manager's Bulletin or procedural update will be 
implemented for the 1997 crop year for all crops with a contract change date 
after August 20, 1996, and for the 1998 crop year for all crops with a 1997 
crop year contract change date prior to August 20, 1996.  Following is a 
summary of significant changes to these regulations since they were published 
as interim rule on January 6, 1995.  Please refer to the regulation for more 
complete information.
     
     -   Section 400.652(e) refers to consequences if policy provisions are   
         not complied with.
     
     -   Section 400.653(a) provides a means for a producer to comply with    
         linkage requirements when the producer plants a crop of economic     
         significance that is not currently insured.
     
     -   Section 400.654(c)(4) explains the producer's option when a          
         substitute crop is planted and it is a crop of economic              
         significance.
     
     -   Sections 400.654(d) and (e) refers to acreage reporting.
     
     -   Section 400.655(d)(2) specifies that a producer may only receive one 
         USDA benefit under
         CAT coverage.  
     
     -   Section 400.655(d)(4) provides for CAT coverage under a single       
         policy for a tobacco producer with multiple shareholders.
     
     -   Section 400.655(d)(5) provides for CAT coverage for all landowners   
         under a single policy who hold an undivided interest in the          
         insurable acreage.
     
     -   Section 400.656 refers to administrative fees: amount of fees; dates 
         they are due; consequences if fees are not paid when due; and the    
         result of a zero acreage report.
     
     -   Section 400.657 explains eligibility requirements for emergency crop 
         loss assistance in connection with the crop; eligibility for the     
         Agriculture Market Transition Act benefits, certain farm credit      
         programs, and the Conservation Reserve Program. 
     
     -   Insurance providers must advise producers of these provisions as     
         applicable.
     
Attachment - will follow in the mail