INFORMATIONAL MEMORANDUM:  R&D-97-044
     
TO:      All Reinsured Companies
         All Risk Management Field Offices
       
FROM:    Tim B. Witt           /S/ TIM B. WITT 06/27/97
         Deputy Administrator
       
SUBJECT: 1998 Walnut Crop Insurance Provisions
     
Attached is a copy of the Walnut Crop Provisions that will be effective
for the 1998 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. 
     
- Unit division provisions contained in section 2 provide guidelines for
  optional unit division of walnut basic units.  This change makes basic
  unit division provisions for walnuts consistent with other perennial
  crops.  These provisions have also been expanded to include the
  insured's reporting responsibilities to qualify for optional units and
  the breakdown of units by irrigated and non-irrigated acreage.
     
- Section 3 specifies that the insured may select only one price
  election for all the walnuts in  the county insured under the policy,
  unless the Special Provisions provide different price elections by
  variety or varietal group, in which case the insured may select one
  price election for each walnut variety or varietal group.  The price
  elections selected must  have the same percentage relationship to the
  maximum price offered.
     
- Section 3(b) specifies that the insured must report any damage,
  removal of trees, and any change in practice that may reduce yields.
     
- Section 7 allows insurance for walnuts interplanted with another
  perennial crop in order to make insurance available on more acreage
  and reduce the reliance on the Noninsured Crop Disaster Assistance
  Program (NAP).
     
- Section 9(a)(3) and (4) specifies that damage or loss of production
  due to disease or insect infestation will not be insurable unless an
  insured cause of loss prevents the proper application of control
  measures.
     
- Section 9(a)(8) specifies that failure of the irrigation water supply
  must be caused by an insured peril that occurs during the insurance
  period.
     
- Section 11(b) clarifies the calculations used to determine walnut
  indemnities by allowing the aggregation of production guarantees and
  production to count when more than one walnut variety or varietal
  group is in one unit.
     
- Section 11(d) specifies that quality adjustment for mold damaged
  walnuts will be based on the net delivered weight.
     
- Section 12 adds provisions for providing insurance coverage by written
  agreement.
     
Attachment - ATTACHMENT WILL BE MAILED WITH BULLETIN: R&D-97-044