August 25, 1998


INFORMATIONAL MEMORANDUM: R&D-98-040

TO:      All Reinsured Companies
         All Risk Management Field Offices

FROM:    Tim B. Witt         /s/ Denise Hoffmann (for)
         Deputy Administrator
         
SUBJECT: 1999 Nursery Update

The proposed nursery program for container and field grown nursery plants has not yet been
published as a final rule.  Upon publication of the final rule, the Risk Management Agency
(RMA) will issue a Manager's Bulletin discussing the new program and its implementation.

On Tuesday, August 11, 1998, the Federal Crop Insurance Corporation's Board of Directors was
notified that the current nursery program will continue for the 1999 crop year, and the new
program will be put in place concurrently once it clears final rule.  When the regulation is
published as a final rule, training on the new program will be conducted and sales can
commence.

Several inquiries have been received about sales and support for the current program.  Since no
changes were made to the current program on or before the June 30 contract change date, and the
actuarial documents state they are in effect for the 1998 and succeeding crop years, the
documents on file for 1998 remain current for 1999.

On August 4, 1998, data processing personnel from the reinsured companies were notified that
until a decision regarding the new program is made, the 1998 actuarial data master (ADM) would
be rolled over to 1999 to allow developmental fund designation on current nursery policies.  It
was agreed that companies would be given 2 additional weeks to make the designations since the
lock down date for developmental fund designations had passed.  The ADM was released on
August 14, 1998.  

DISPOSAL:

This Informational Memorandum will remain in effect until September 30, 1999.