INFORMATIONAL MEMORANDUM:    R&D-96-054
     
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: Catastrophic Risk Protection Endorsement
     
     
Attached is the Catastrophic Risk Protection Endorsement, which conforms 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 this endorsement since it was published as interim 
rule on January 6, 1995.  Please refer to the endorsement for more complete 
information.
     
     -   Section 1 amends the definition of  "crop of economic significance."
     
     -   Section 5(a) refers to acreage reporting.
     
     -   Section 6 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 7(b) provides for CAT coverage under a single policy for a 
         tobacco producer with multiple shareholders.
         
     -   Section 7(c) provides for CAT coverage for all landowners under a 
         single policy who hold an undivided interest in the insurable 
         acreage.
     
     -   Section 9(b) specifies that a producer may only receive one USDA 
         benefit under CAT coverage.
     
     -   Section 12(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 12(e) 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.  
     
     -   Section 12(f) refers to consequences if policy provisions are not 
         complied with.
     
Attachment - will follow in the mail