BULLETIN NO.:   MGR-96-054
     
TO:       All Reinsured Companies
          All Risk Management Field Offices
          FSA Headquarters, Program Delivery and Field Operations
                
FROM:     Kenneth D. Ackerman
          Acting Administrator
     
SUBJECT:  1997 Projected Market Prices for Wheat and Rye
     
     
The Risk Management Agency (RMA) today announced the 1997 projected market 
prices, which are the multiple peril crop insurance (MPCI) price elections 
for the following crops (all prices are per bushel): wheat - $3.85, durum 
wheat - $3.85, and rye - $3.05.  These price elections are available to 
producers who elect additional coverage for their 1997 crop(s).  Producers 
who choose the catastrophic (CAT) level will be insured at 60 percent of 
these values.  Price election choices must be made on or before the sales 
closing date for the crop in a county.
     
The established price elections previously announced were $3.85 for wheat 
and $3.05 for rye.  Projected market prices that are higher than the 
established price elections may impact producers originally electing the 
established price.  Eligibility for level of subsidy is based on the 
projected market price, so anyone using the established price election may 
receive a lower level of subsidy unless changed prior to the contract change 
date.
     
The price elections for CAT coverage are as follows: wheat - $2.31, durum 
wheat - $2.31, and rye - $1.83.