INFORMATIONAL MEMORANDUM:  R&D-97-045
     
TO:      All Reinsured Companies
         All Risk Management Field Offices
              
FROM:    Tim B. Witt          /S/ TIM B. WITT 06/27/97
         Deputy Administrator
       
SUBJECT: 1998 Almond Crop Insurance Provisions
     
Attached is a copy of the Almond 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.
     
- Section 3 specifies that the insured may select only one price
  election for all the almonds 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
  almond type.  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 almonds 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)(7) 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 almond
  indemnities by allowing the aggregation of production guarantees and
  production to count when more than one almond type is in one unit.
     
- Section 12 adds provisions for providing insurance coverage by written
  agreement.
     
Attachment