August 15, 1997
    
INFORMATIONAL MEMORANDUM:  R&D-97-060
     
TO:      All Reinsured Companies
         All Risk Management Field Offices
       
FROM:    Tim B. Witt          /s/ Tim B. Witt
         Deputy Administrator
       
SUBJECT: 1998 Safflower Crop Insurance Provisions
     
     
Attached is a copy of the Safflower Crop Insurance 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. The
provisions are also available on the Reporting Organization (RO) Server.
Please refer to the provisions for more complete information.
    
- Section 1 changes the name of the crop provision from "Safflower Seed"
to "Safflower."  Also, the Late Planting Agreement Option no longer
applies.  Both Late Planting and Prevented Planting provisions for
safflower are proposed in a separate rule.    
     
- Section 1 adds definitions for the terms "days," "FSA," "final
planting date," "good farming practices," "interplanted," "irrigated
practice," "local market price," "nurse crop (companion crop)," "planted
acreage," "pounds," "practical to replant," "production guarantee (per
acre)," "replanting," and "written agreement" for clarification.  Also,
the definition of "value per pound of damaged safflower" has been
changed. 
     
- Section 2 expands the unit division provisions to include insured
reporting responsibilities to qualify for optional units, and clarifies
unit division for non-irrigated corners of center pivot irrigation
systems.
     
- Section 3 states that an insured may select only one price election
for all the safflower in the county as designated in the Special
Provisions.
     
- Section 5 changes the cancellation and termination dates to be 30 days
earlier than in the previous safflower crop insurance endorsement for
states other than California. 
     
- Section 6 prohibits interplanting safflower with another crop, or
planting safflower into an established grass or legume, unless allowed
by Special Provisions or by written agreement.
     
- Section 9 clarifies that any losses caused by insufficient or improper
application of pest control or disease control measures are not an
insured cause of loss.  Also, a change was made to clarify that wildlife
is an insured cause of loss, unless proper measures to control wildlife
have not been taken.
     
- Section 10 allows producers to receive a replant payment.  This is
consistent with many other annual crops converted to the Common Policy. 
     
- Section 11 provides that representative samples of unharvested
safflower must not be harvested or destroyed until the earlier of
inspection or 15 days after harvest of the balance of the unit is
completed.
     
- Section 12(a) clarifies determining loss on a unit basis and
requirements of production records.
     
- Section 12(c) clarifies how to determine total production to count
from all insurable acreage. 
  
- Section 12(d) clarifies when production qualifies for quality
adjustment by adding a provision that clarifies when quality will be a
factor in determining the loss.
     
- Section 12(d)(4) removes the language that limited quality adjustment
to not less than 50 percent of the market price.
     
- Section 13 adds a provision for providing insurance coverage by
written agreement.
     
If you have any questions, please contact David Clauser of the Product
Development Division at (816) 926-7730.