INFORMATIONAL MEMORANDUM: R&D-97-024
               
TO:      All Reinsured Companies
         All Risk Management Field Offices
         FSA Headquarters, Program Delivery and Field Operations
               
FROM:    Tim B. Witt      /s/ Tim B. Witt       03/28/97  
         Acting Deputy Administrator
               
SUBJECT: 1998 Forage Production Crop Insurance Provisions
               
Attached is a copy of the Forage Production Crop Insurance Provisions  
that will be effective for the 1998 and succeeding crop years.  The 
following is a brief description of the significant changes.  Please 
refer to the provisions for more complete information.
               
-   Section 1 added a definition for the term "adequate stand" to 
    specify that the minimum number of forage plants required for 
    insurance to attach will be contained in the Special Provisions.  
    This definition allows for regional differences in forage plant 
    population.
               
-   Section 1 clarifies the definition of "air-dry forage" which 
    references 18 percent moisture as the basis for converting forage 
    to an air-dry equivalent.  This has been changed to 13 percent 
    because of a typing error.
               
-   Section 1 added a definition for the term "fall planted" to 
    specify that forage planted after June 30 will be considered fall 
    planted forage.
               
-   Section 1 amended the definition of "forage" to allow insurance 
    coverage for non-grass forage species other than alfalfa and red 
    clover (e.g., birdsfoot trefoil).
               
-   Section 1 added a definition for the term "spring planted" to 
    specify that forage planted before July 1 will be considered 
    spring planted forage.
               
-   Section 1 amended the definition of "harvest" to specify that 
    grazing will not be considered harvested because insurance 
    coverage is only provided for forage that is grown for the purpose 
    of livestock feed.
               
-   Section 2 clarifies that optional units are not available for 
    forage production.

-   Section 3(a) clarifies that an insured may select only one price 
    election for all the forage production in the county insured under the 
    policy, unless the Special Provisions provide different price elections 
    by type, in which case the insured may select one price election for 
    each forage type designated in the Special Provisions.
               
-   Section 3(b) clarifies that an insured must report, by the
    production reporting date, the total production harvested from 
    insurable acreage for all cuttings for each unit.
               
-   The contract change date has changed from August 15 to June 30.  
    The change eliminates the distribution of actuarial materials 
    separately for this crop, thereby simplifying the crop insurance 
    program and reducing administrative overhead costs.
               
-   Cancellation and termination dates have changed from November 30 
    to September 30.  The sales closing date for the 1998 crop year is 
    also changed to September 30.  This change will allow the insurer 
    to inspect any forage acreage under more favorable conditions to 
    determine that an adequate stand exists prior to accepting an 
    application.
               
-   Section 6 specifies that an insured must submit separate acreage 
    reports for acreage insured under the Forage Production Winter 
    Coverage Endorsement and for all other forage acreage on or before 
    the acreage reporting dates contained in the Special Provisions.  
    Separate fall and spring acreage reports are necessary because 
    insurance attaches in the fall for acreage insured under the 
    Forage Production Winter Coverage Endorsement and in the spring 
    for all other forage acreage.
               
-   Section 7(b)(1) specifies that we will not insure any forage that 
    does not have an adequate stand at the beginning of the insurance 
    period.
               
-   Section 7(b)(3) specifies that we will not insure forage that 
    exceeds the age limitation for forage stands contained in the 
    Special Provisions.  This change eliminates the provision that 
    allows overage stands of forage to be insured by written 
    agreement.   
               
-   Section 8 provides different calendar dates for the beginning of 
    the insurance period for acreage covered under the Forage
    Production Winter Coverage Endorsement.  This change was necessary 
    due to the addition of the new Forage Production Winter Coverage 
    Endorsement.
               
-   Section 12 added provisions for providing insurance coverage by
    written agreement.
               
-   Added a new Forage Production Winter Coverage Endorsement.  This 
    endorsement will provide optional winter coverage in any county    
    for which the actuarial table designates forage production premium 
    and rates when the insured elects the endorsement by the sales 
    closing date.  Allowing winter protection only when the insured 
    elects the winter coverage will result in separate premium rates 
    for insureds who elect the winter coverage.
               
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