INFORMATIONAL MEMORANDUM:    R&D-97-028
     
TO:      All Reinsured Companies
         All Risk Management Field Offices
         FSA Headquarters, Program Delivery and Field Operations
     
FROM:    Tim B. Witt    /s/ TIM B. WITT 04/01/97
         Deputy Administrator
    
SUBJECT: 1997 Raisin Crop Insurance Provisions
     
Attached is a copy of the Raisin Crop Provisions that will be effective
for the 1997 and succeeding crop years.  The following is a brief
description of the significant changes to these provisions.  Please
refer to the provisions for more complete information.
     
-   Section 3(c)(2) specifies that when production from a portion of a
    unit is removed from the vineyard and production from the remaining
    acreage is lost in the vineyard, the amount of production lost in the
    vineyard will be based on the number of tons produced on the acreage
    from which production was removed.  Also specifies that when all
    production is damaged and not removed from the vineyard, the amount
    of raisin tonnage lost in the vineyard will be determined by an
    appraisal.  Tray counts and weights, previously used to establish the
    amount of an appraisal, are not always reliable and will no longer be
    used.  Instead, an amount of appraised production per vine will be
    determined, and this amount will be multiplied by the number of vines
    to determine the total amount of appraised production.

-   Section 3(c)(3) adds provisions indicating that raisins containing
    moisture in excess of 24.3 percent at the time of delivery, and
    released for a use other than dry edible fruit (e.g., distillery
    material), will be considered to contain 24.3 percent moisture. 
     
-   Section 6(a) adds provisions that require the insured to report
    raisin acreage on or before the sales closing date. 

-   Section 6(b) specifies that raisin acreage acquired after the acreage
    was reported may be included on the acreage report if the insurance
    provider agrees to accept the additional acreage.  Such acreage
    cannot be added to the acreage report after the insured first places
    raisins from the additional acreage on trays for drying.  Failure to
    report any acreage in which the insured has a share will result in
    denial of liability.  If an insured elects not to produce raisins on
    any part of the acreage included on the acreage report, they
    must notify their insurance provider in writing on or before
    September 21, and provide any records the company may require to
    verify that raisins were not produced on that acreage.  
                                                            
-   Section 11(a) specifies that if it is not practical to recondition
    damaged production, the insurance provider may determine the number
    of tons meeting Raisin Administrative Committee (RAC) standards that
    could be obtained if the production were reconditioned.

-   Section 11(c) added provisions that authorize a reconditioning
    payment when raisins are damaged by rain and found to contain mold,
    embedded sand, or other rain-caused contamination determined by
    micro-analysis in excess of standards established by the RAC, or are
    found to contain moisture in excess of 18 percent.  

-   Section 12 (a) added provisions specifying the information required
    from the insured when providing a notice of damage.
     
-   Section 13(c) specifies that for the purpose of establishing an
    indemnity, the insured's share cannot exceed the lesser of their
    share at the time insurance attaches or at the time of loss. 

-   Section 13(g) specifies that raisins damaged and discarded from trays
    or that are lost from trays scattered in the vineyard as part of
    normal handling will not be considered to have any value.  
     
-   Section 14 adds provisions for providing insurance coverage by
    written agreement.
     
Attachment