INFORMATIONAL MEMORANDUM:    R&D-97-005
     
TO:      All Reinsured Companies
         All Risk Management Field Offices
         FSA Headquarters, Program Delivery and Field Operations
     
FROM:    Tim B. Witt          /S/ TIM B. WITT 01/31/97
         Acting Deputy Administrator
     
SUBJECT: Texas Citrus Tree Crop Insurance Provisions 98-046
     
     
Attached is the Texas Citrus Tree 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 2 allows basic units to be divided into optional units by
    section, section equivalent or FSA Farm Serial Number; or by
    non-contiguous land.  The previous endorsement allowed unit division
    if each unit was non-contiguous. 
     
-   Section 4 changed the contract change date from February 28 to
    August 31.
     
-   Section 5 changed the cancellation and termination dates from May 31
    to November 20.
         
-   Section 6 allows the premium to be increased by 46 percent for the
    1998 crop year only, because of 18 months of coverage.
     
-   Section 7 includes the insurable citrus tree crop designation in the
    Special Provisions rather than in the Texas Citrus Tree Crop
    Provisions.
   
-   Section 8 makes citrus trees 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 9(a)(1) specifies that for the 1998 crop year only, coverage
    will begin on June 1, 1997, and will end on November 20, 1998.  This
    policy will be an 18-month policy for the 1998 crop year only, due
    to the transition period. 
     
-   Section 9(a)(2) specifies that after the 1998 crop year insurance
    coverage begins on November 21 of the calendar year prior to the
    year the insured crop normally blooms, 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
    tenth day after the properly completed application is received in
    the insurance provider's local office, unless the insurance provider
    inspects the acreage during the 10-day period and determines that it 
    does not meet insurability requirements.  Under the current policy,
    insurance attached on June 1 of each crop year, except that for the
    first insured crop year if the application was accepted by the
    insurance provider after June 1: 1) the insurance against wind and
    freeze attached on the tenth day after the properly completed
    application was submitted to the service office; 2) if any insurable
    acreage was set out after June 1, insurance  attached on the date
    set out was completed for the unit if the acreage was reported
    within 72 hours after the date of completion, except for excess wind
    and freeze; and 3) for all other instances, insurance attached on
    the date the application was accepted.
     
-   Section 9(a)(3) specifies that the calendar date for the end of the
    insurance period for each crop year is November 20.
     
-   Section 9(b) specifies that if the producer acquires an insurable
    share in any insurable acreage of citrus trees 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 9(c) specifies that if the producer relinquishes an
    insurable share on any insurable acreage of citrus trees on or
    before the acreage reporting date for the crop year, insurance
    will not be considered to have attached to, and no premium or
    indemnity will be due 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 10 clarifies that failure of the irrigation water supply
    must be caused by an insured peril or drought occurring during the
    insurance period to be an insurable cause of loss.
     
-   Section 12 removes the provisions that limited coverage to 50, 65,
    and 75 percent to allow for the computation of losses if other
    additional coverage levels are offered.
     
-   Section 13 adds provisions for providing insurance coverage by
    written agreement. 
     
Attachments - BULLETIN AND ATTACHMENTS WILL BE MAILED