INFORMATIONAL MEMORANDUM: R&D-97-062
     
     TO:       All Reinsured Companies
               All Risk Management Field Offices
     
     FROM:     Tim B. Witt         /s/ R.E. Waggoner   8/28/97
               Deputy Administrator
     
     SUBJECT:  Issuance of the Ineligible Tracking System Handbook
     
     The Ineligible Tracking System Handbook is approved and issued for the
     purpose of administering the Ineligible Tracking System (ITS).  The
     procedures contained in this handbook will be used to identify, track
     and notify persons who are ineligible to participate in the crop
     insurance program under the Federal Crop Insurance Act, as amended.  The
     handbook is now available on the Reporting Organization (RO) server and
     is being reproduced for distribution.
     
     A copy of the final rule, Ineligibility for Programs Under the Federal
     Crop Insurance Act, which authorizes ITS is contained in the handbook
     for your reference.  Issuance of the handbook and the regulation will
     permit appropriate steps to be taken so that ITS may first be applied to
     1998 crop year policies with a September 30 cancellation date.
     
     ITS will be applicable to all persons who meet any of the ineligibility
     criteria.  For ineligibility for indebtedness, policyholders must have
     been given notification of indebtedness and their rights and
     responsibilities.  Insurance providers who have provided such
     notification through their normal operating procedures will be
     considered to have met the notification requirements specified in the
     handbook.  
     
     Risk Management Agency (RMA) is aware of industry concerns regarding the
     timing of certain notifications of ineligibility for policies that may
     already be in force for a current crop year.  RMA will review all
     aspects of this issue and in consultation with industry representatives,
     will make a final determination regarding the effective year of
     ineligibility for such policies in the near future.
     
     Successful implementation of ITS will require a joint effort between
     reinsured companies, the RMA, and other interested parties.  Please
     direct any questions regarding the ITS to the Product Development
     Division at (816) 926-7387.