BULLETIN NO.: MGR-96-042

TO:     All Reinsured Companies
        All Risk Management Field Offices
        FSA Headquarters, Program Delivery and Field Offices
     
FROM:   Kenneth D. Ackerman
        Acting Administrator

SUBJECT:   Crop Revenue Coverage - Wheat Crop Insurance Program  


ISSUE:

The Federal Crop Insurance Corporation's (FCIC) Board of Directors (Board) 
recently approved a pilot program known as the Wheat Crop Revenue Coverage 
(CRC Wheat) Insurance Program for reinsurance, administrative expense and 
premium subsidy.  CRC Wheat is now available to all reinsured companies who 
choose to market this product beginning with 1997 fall planted wheat.

DISCUSSION:

Section 508 (h) of the Federal Crop Insurance Reform Act (Act) established 
authority for the Board to approve reinsurance, administrative expense and 
premium subsidy for crop insurance policies submitted to the Board.  CRC 
Wheat protects a grower's loss of revenue resulting from fluctuating wheat 
prices and/or low yields.  The CRC Wheat policy provides coverage on a 
basic/optional unit basis.

The pilot program for CRC Wheat coverage is available in ALL counties in the 
following states:

     Kansas, Michigan, Nebraska, South Dakota, Texas and Washington

and in the following counties in Montana:

     Blaine, Broadwater, Cascade, Chouteau, Fergus, Glacier, Golden Valley, 
     Hill, Judith Basin, Lewis and Clark, Liberty, Meagher, Musselshell, 
     Petroleum, Phillips, Pondera, Teton, Toole, and Wheatland.


The approved CRC wheat policies, endorsements, CRC revenue rates, low and 
high price factors for winter wheat, premium calculation worksheet, 
underwriting rules, and questions and answers will be available through the 
Reporting Organization Server.  Low and high price factors for wheat under 
the Chicago and Kansas City Boards of Trade are available.  All other price 
factors will be released as an actuarial addendum as soon as they are 
available (most likely within the first week of September).  CRC Wheat base 
and harvest prices will be released by FCIC in accordance with the CRC 
Commodity Exchange Endorsement - Wheat.  Companies must use FCIC approved 
CRC Wheat documents to market 1997 CRC Wheat.  

CRC Wheat will be reinsured under the Standard Reinsurance Agreement (SRA).  
Policies written under this pilot program will be subject to the SRA's state 
maximum cessions to the Assigned Risk Fund as well as fund designations per 
Exhibit 14 of the Plan of Operations.