INFORMATIONAL MEMORANDUM:  R&D-97-063
     
TO:      All Reinsured Companies
         All Risk Management Agency Field Offices
     
FROM:    Tim B. Witt             /s/ Tim B. Witt       09/03/97
         Deputy Administrator
     
SUBJECT: 1998 Pecan Revenue Actuarial Materials
  
BACKGROUND:
  
The Board of Directors of the Federal Crop Insurance Corporation (FCIC)
approved a pilot insurance program for pecans on May 29, 1997.  The
pilot is a revenue guarantee program based on the grower's actual
revenue records and is offered for sales in the 1998, 1999, and 2000
crop years.  FCIC will require insureds to purchase insurance in 2-year
modules.  Thus, protection will be available in 2001 but not new sales. 
The insured will be protected from unavoidable decline in revenue due to
adverse weather, fire, decline in market price, insects, and disease. 
FCIC will offer the pecan revenue pilot in the following States and
counties:
     
     GEORGIA               NEW MEXICO                   TEXAS
     
     Lee                   Dona Ana                     Culberson
     Dougherty                                          El Paso
     Mitchell                                           Pecos
     
The sales closing date for pecans is October 31.
      
ACTION:       
  
This release includes the FCI-35 Coverage and Rate Tables, Special
Provisions of Insurance, Pecan Premium Calculation Worksheet, the Actual
Production History Procedure and Reference Guide, Pecan Disclaimer, and
the crop provisions. These materials are also available electronically
via the Reporting Organization server. 
     
If you have any questions about this pilot program, please contact
Vondie O'Conner at (816) 926-6343 or by fax at (816) 926-7343.