February 4, 1998


INFORMATIONAL MEMORANDUM: R&D-98-004

TO:  All Reinsured Companies
All Risk Management Field Offices

FROM:Tim B. Witt    /s/ TIM B. WITT
Deputy Administrator

SUBJECT:  1998 Crop Revenue Coverage Actuarial Documents - Optional Unit
Division By Farm Serial Number in the Southeast States

BACKGROUND:

Beginning with the 1998 crop year, Crop Revenue Coverage (CRC) was
expanded into many of the Southeast States for corn, cotton, grain
sorghum, and soybeans.  In some of these States, optional unit division
under the actual production history (APH) yield based program is limited
to a Farm Serial Number (FSN) by the following special provisions
statement:  

"Optional unit division is NOT available by section or section
equivalent.  Optional unit division is available based on Farm
Serial Number (FSN) and any other method specified in the crop
provisions except section or section equivalent.  To be eligible
for the available methods of optional unit division, you must meet
all applicable requirements contained in the policy."


For the 1998 crop year, it was intended to have this statement on the
CRC Special Provisions for the following crops and States:

 CORN-COTTON-GRAIN SORGHUM-SOYBEANS  
Alabama
Arkansas
Louisiana
Mississippi

However, this statement was omitted on the CRC Special Provisions.

ACTION:

For the 1998 crop year, CRC optional units will be based on FSN for the
crops and States listed above.  The CRC Special Provisions will contain
this statement for the States and crops listed for the 1999 crop year.