INFORMATIONAL MEMORANDUM: R&D-97-013
     
TO:       All Reinsured Companies
          All Risk Management Field Offices
          FSA Headquarters, Program Delivery and Field Operations
     
FROM:     Tim B. Witt    /s/ R.E. Waggoner (for)     2/19/97
          Acting Deputy Administrator
     
SUBJECT:  Cranberry Crop Insurance Provisions
     
Attached is a copy of the Cranberry Crop Insurance Provisions effective
for the 1998 and succeeding crop years.  A brief description of the
significant changes to these provisions follows.  Please refer to the
provisions for complete information.
     
-  Section 1 clarifies that the definition of  "harvest" is removal of
   the cranberries from the bog rather than the picking of the
   cranberries from the vines for the purpose of removal from the land. 
   Reference to overhead solid irrigation systems and frost prevention
   in the definition of  "irrigated practice" as published in the
   proposed rule has been removed.
     
-  Section 2 has been expanded to include the insured's reporting
   responsibilities to qualify for optional units, allows for the
   breakdown of units by irrigated and non-irrigated acreage and only
   requires optional units "established for the crop year" to be
   identified on the acreage report.
     
-  Section 3(b) specifies that the producer must report any damage,
   removal of vines, and changes in practices that may reduce yields.
     
-  Section 7(a)(1) specifies that if an application is accepted after
   November 20, insurance will not attach until the 10th day after the
   application is received by the insurance provider and provides
   guidelines for attachment of insurance when insurable acreage is
   acquired or relinquished.
     
-  Section 7(b)(2)(iii) adds a requirement to clarify that any
   transferee must also be eligible for crop insurance.
     
-  Section 8(a)(7) clarifies that failure or breakdown of irrigation
   equipment or facilities due to direct damage to the irrigation system
   or facilities, is an insurable cause of loss if the crop is damaged
   by freezing temperatures within 72 hours of such failure or breakdown
   and repair or replacement was not possible before damage occurred.
     
-  Section 8(b) specifies that disease and insect infestations are
   excluded causes of loss unless adverse weather prevents the proper
   application of control measures, causes control measures to be
   ineffective when properly applied, or cause disease or insect
   infestation for which no effective control mechanism is available. 
   This section clarifies that the inability to market the cranberries
   for any reason other than actual physical damage is not a covered
   cause of loss.
     
-  Section 9(a) adds provisions that require an insured to notify the
   insurer of probable loss at least 15 days before the beginning of
   harvest, or immediately if discovered after harvest has begun so an
   inspection can be made.
     
-  Section 9(b) clarifies that the insured is prohibited from selling or
   disposing of any damaged production until the earlier of 15 days from
   request or when the insurance provider provides written consent to do
   so.
     
-  Section 9(c) clarifies that the failure of the producer to meet the
   requirements of this section, and such failure results in the
   insurance provider's inability to inspect the damaged production, all
   such production will be considered undamaged and included as
   production to count.
     
-  Section 10(c)(1)(D) was added  "destroyed or put to another use
   without our consent" to be consistent with other crop provisions.
   
-  Section 10(c)(3) clarifies that harvested production that, due to
   insurable cause, is determined not to meet U.S. Standards for Fresh
   Cranberries, if available, and such harvested production has a value
   less than 75 percent of the market price for cranberries meeting the
   minimum requirements will be adjusted by: (i) dividing the value per
   barrel by the market price per barrel; and (ii) multiplying the
   results by the number of barrels.
     
-  Section 11 adds provisions for providing insurance coverage by
   written agreement.
     
If you have any questions, please contact Dave Clauser of the Product
Development Division at (816) 926-7730.
     
Attachment - ENTIRE BULLETIN AND ATTACHMENT WILL BE MAILED