INFORMATIONAL MEMORANDUM: R&D-97-081
     
TO:       All Reinsured Companies
          All Risk Management Field Offices
     
FROM:     Tim B. Witt       /s/ TIM B. WITT   November 14, 1997
          Deputy Administrator
     
SUBJECT:  1998 APH Procedure for Multiple Transitional ("T") Yield Map
          Area Units
     
     
BACKGROUND:
     
Beginning with the 1998 crop year, the Risk Management Agency (RMA)
established county transitional ("T") yields for all crops where the "T"
Yields were previously established using Farm Service Agency (FSA)
program yields.  In some counties, multiple county "T" Yield Maps were
also implemented.  These "T" Yield Maps created situations where a
single unit may contain land in more than one "T" Yield Map Area. 
Procedure in the 1998 Crop Insurance Handbook (CIH) requires separate
databases for each map area.
     
Insurance providers have indicated that, in many cases, previous actual
production history (APH) is not available on this basis, cannot be
accurately maintained on this basis for the future, and requires
additional APH databases that may not be necessary.
     
ACTION:
     
The revised procedure shown below replaces the current text in the 1998
CIH, Section 6E(1)(b)2, page 99 until slipsheets for the 1998 CIH are
issued in the near future.
     
2  Map Areas.  In addition to P/T/V's, "T" Yields may be assigned
   for certain areas within a county ("T" Map Areas).  Acreage
   located in "T" Yield Map Areas with different "T" Yields
   requires separate APH yields [******(DATABASES),  EXCEPT IN COUNTIES
   WHERE THE "T" YIELD WAS DERIVED FROM FSA PROGRAM YIELDS THE
   PREVIOUS CROP YEAR (1997) AND "T" YIELDS ARE ASSIGNED BY "T"
   YIELD MAPS FOR THE CURRENT CROP YEAR (1998).  FOR THIS
   SITUATION, WHEN A UNIT (DATABASE) CONTAINS MORE THAN ONE "T"
   YIELD MAP AREA AND A "T" YIELD IS NECESSARY, DETERMINE THE "T"
   YIELD BY USING A SIMPLE AVERAGE OF THE 1998 "T" YIELDS.******]  For
   units located in more than one "T" Yield Map Area (except for
   land assigned a high-risk "T" Yield or insureds/land
   classified under NCS with yield adjustments), the variable "T"
   Yield is determined by the number of years of actual and/or
   assigned yields provided on the unit for each applicable
   P/T/V.  Separate APH yields are not required for maps used
   only to assign rates (including areas with a high-risk rate
   adjustment factors that have NOT been assigned separate "T"
   Yields).

   For example: The county actuarial table for CC wheat indicates:
          
        --------------------------------------------------
             Type   :  Practice       : Map Area/"T" Yield
        --------------------------------------------------
           011 (winter)  :  004 (CC)  :    001 = 15.0
                         :            :
           011 (winter)  :  004 (CC)  :    002 = 23.0
                         :            :
           011 (winter)  :  004 (CC)  :    AAA = 15.0
        --------------------------------------------------
             
    In this example, a separate APH yield is required for the
    [******LAND DESIGNATED AS AAA.  THE DATABASE FOR A UNIT
    CONTAINING MAP AREAS 001 AND 002 WILL USE A SIMPLE AVERAGE OF MAP
    AREA 001 AND 002'S "T" YIELDS (15 + 23 ö 2) = 19.******]  
             
    Note:  If a different percentage of the "T" Yield is used for the
    individual "T" Yield Map Area than indicated by actual and/or
    assigned yields in the database, use the yield descriptor "C"
    (necessary for other situations).
         
    For Data Acceptance Purposes (DAS):
     
        (1)  Enter "W" in the yield indicator field (20).  
          
        (2)  Enter the simple average "T" Yield in the transitional yield
             field (21).
          



Please note: In the hard copy that will be mailed, the revised version is
shown as redlined copy.  Because of ASCII formatting, however, the
revision is shown as follows:  [****** ALL CAPS ******]