November 27, 1998

INFORMATIONAL MEMORANDUM:  R&D-98-065

TO:      	All Reinsured Companies
    		All Risk Management Agency Field Offices
    		All Other Interested Parties

FROM:    	Tim B. Witt         /s/ Roberta E. Waggoner (for)
    		Deputy Administrator
    
SUBJECT: Strawberry Pilot Program Participation

BACKGROUND:

The Risk Management Agency (RMA) is developing a pilot insurance program for strawberries. 
The National Agricultural Statistics Service reports the value of U. S. strawberry crops averaged
nearly $800 million during the last 5 years (1993-97).  California accounted for about half the
harvested acreage and 75 percent of the value of strawberry production ($600 million).  Other
strawberry-producing States include Florida ($120 million), Oregon ($25 million), New York
($12 million), and North Carolina ($10 million).  Strawberry crops in Michigan, Washington,
Pennsylvania, Louisiana, and Wisconsin averaged $5 to $7 million. 

Strawberries are grown primarily for fresh sales in most States, except Oregon and Washington,
where most are grown for packaging as frozen sales.  Cultural practices vary considerably
between Northern and Southern States.  In California, Florida, and North Carolina, strawberries
are grown as annual crops under intense management practices.  In Northern States, strawberries
are generally grown as a perennial crop.

RMA Regional Service Office (RSO) personnel have found significant interest in an insurance
program during focus group meetings with growers and handlers in California.  Major perils
include frost and freeze damage, excessive rain that prevents timely harvest or promotes fungal
diseases, and excessive heat that reduces fruit set.

ACTION:

A strawberry feasibility study can be obtained by contacting the Research and Evaluation
Division at (816) 926-6343.  Insurance providers or other parties wanting to participate in the
development of a strawberry pilot insurance program should select a representative from their
organization to work with RMA on this product and provide the representative's name, address,
and phone number to Kathy Tiefel, the Project Manager, by November 30, 1998,  at the
following address:

                    Risk Management Agency, USDA
                    Research and Evaluation Division
                    P. O. Box 419293
                    Kansas City, MO 64141
                    Phone: (816) 926-6339
                    Fax: (816) 926-7343
                    E-Mail: kathy_tiefel@rm.fcic.usda.gov