January 20, 1999


INFORMATIONAL MEMORANDUM:  R&D-99-003

TO:       All Reinsured Companies
          All Risk Management Field Offices
                              
FROM:     Tim B. Witt            /s/ Tim B. Witt 
          Deputy Administrator
          
SUBJECT:       Issuance of Slipsheets (FCIC 18010-03) to Update the 1998 FCIC 18010 Crop
               Insurance Handbook (CIH) for the 1999 Crop Year

BACKGROUND:

The Risk Management Agency (RMA) is transmitting changes that apply to Catastrophic Risk
Protection (CAT), limited, and additional coverage via 1998 FCIC 18010-03 slipsheets. 
Therefore, the 1998 FCIC 18010 with slipsheets dated January 1998 (FCIC 18010-01), July 1998
(FCIC 18010-02), and January 1999 (FCIC 18010-03) will be effective for the 1999 crop year.

Procedures contained in the FCIC 18010 have been updated to include revisions to the Common
Crop Insurance Policy, basic policy provisions, and changes or additions to the existing procedure
for clarification purposes.

SUMMARY OF PROCEDURAL CHANGES:

As a reminder, crop year references and examples throughout the CIH have not been updated
unless the page was being slipsheeted for another reason.  Use the date in the header to determine
whether or not the crop year references on a page are current.  Changes or additions to the
existing procedure for clarification purposes have been shaded.  Changes in numbering, language,
etc., are not shaded when the procedure remains the same.

The following is a summary of the more significant changes:

Section 3, Definitions

     Definitions have been updated to agree with the changes to the Basic Provisions, Crop
     Provisions, or Special Provisions.  

Section 4, General Rules

  Updated the annual administrative fees for additional, limited, or CAT coverage.

  Added different coverage levels may be selected on each different policy for Hybrid Seed
  Corn and Hybrid Sorghum Seed grown under contract with more than one seed company.

  Updated procedure to allow the landlord to insure the tenant's share, or the tenant to
  insure the landlord's share, if indicated on the application.

  Provided clarification on Insurance Provider's responsibilities in administering the "all
  counties" application procedure.

  Added procedure acknowledging that insureds may receive emergency loans in addition to
  crop insurance indemnities as provided under subtitle C of the Consolidated Farm and
  Rural Development Act (7 U.S.C. 1961 et seq.).

  Added procedure for late planting (LP) and prevented planting (PP) to reflect recent Basic
  Provisions policy changes.

  Clarified the Northern Certified Seed Potato and Northern Potato Storage Coverage
  Endorsement.

  Updated intended acreage report procedure.

  Updated written agreement chart.

Section 6, Category B Actual Production History (APH) Crop Procedure
 
  Added Pilot Yield Floor Option available only in Minnesota, North Dakota and South
  Dakota.

  Added procedure to indicate yield limitations do not apply when the required RMA
  Regional Service Office (RSO) yield determinations are waived by the RMA RSO and the
  Insurance Provider is authorized to calculate the approved APH yield.

  Clarified acceptable production to count when insured under the Northern Potato Crop
  Provisions.

Section 7, Category C APH Crop (Perennial Crops) Procedure 

  For the 2000 crop year, Insurance Providers may be authorized to perform the inspection
  and determine the applicable guarantee for Texas Citrus Fruit.

  Added procedure to indicate yield limitations do not apply when the required RMA RSO
  yield determinations are waived by the RMA RSO and the Insurance Provider is
  authorized to calculate the approved APH yield.

  Clarified unusual cases submitted to the RMA RSO for determinations in approving APH
  yields for perennial crop acreage.

Section 8, Other Coverage Plans

  Changed CAT coverage for peanuts to 55 percent of the maximum price for both quota
  and non-quota peanuts.

Section 11, Reconsiderations, Mediation, and Appeals

  Added for Blueberries in the states of Maine, Mississippi, and New Jersey; and Texas
  Citrus:  if a preliminary yield was not calculated and the approved APH yield is not
  acceptable to the insured, the insured may request mutual consent cancellation if insured at
  the limited or additional coverage levels.

Section 14, APH Field Review Information

  Clarified APH review procedures and the application of tolerances.

Exhibit 1, Crop Policy Chart

  Updated policy information and form number of policies that have been published as final
  rule in the Federal Register.

Exhibit 22, Additional Malting Barley Procedure

  Removed procedure for restructuring databases established for carryover insureds under
  the 95-91A Malting Barley Endorsement.  

  Added requirements for acceptable production records for feed Barley insured under
  Option A of the Malting Barley Price and Quality Endorsement.
Exhibit 25, Forage Production Underwriting Report

  Clarified if the Winter Coverage Endorsement is NOT in effect, the Forage Production
  Underwriting Report is due by the Spring Acreage Report Date

Exhibit 32, Entities: Definition, Determination, and Documentation

  Added the landlord and tenant must have separate contracts unless the application clearly
  states the landlord will insure the tenant's share or the tenant will insure the landlord's
  share.

Exhibit 37, New Producers

  Clarified that New Producers who still qualify would use New Producer procedures for
  added land/P/T/V without records added as a separate unit or to an existing unit.

  Clarified New Producers and Insurance Providers must document the new producer status
  by the production reporting date.

  Added if the agent/representative fails to correctly identify the new insured as a New
  Producer, the error may be corrected up until the acreage reporting date with Insurance
  Provider approval.

ACTION:
                                 
Slipsheets to the CIH (WordPerfect 6.1) may be accessed VIA the Internet (RMA Web Site
http://www.rma.usda.gov/pub/Publications/crop_ins_handbook/1999) and Reporting
Organization (RO) Server.  Handbooks and other related materials retrieved from the Internet are
for informational purposes only.  Official copies of the Handbook including Slipsheets may be
obtained from an approved insurance provider or the Risk Management Agency.  For questions
regarding this information, please contact Steve Vollrath of the Product Development Division at
(816) 926-7965.  For technical questions regarding the telecommunications systems, or to receive
previous RO Server releases, please contact Herb Solomon at (816)926-1608.

DISPOSAL:

This Informational Memorandum is for the purpose of transmitting/updating information and the
disposal date is April 30, 1999, for administrative tracking purposes.  The Handbook with the
updated slipsheets will remain in effect until superseded.

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