BULLETIN NO.:   MGR-97-001
     
TO:       All Reinsured Companies
          All Risk Management Field Offices
          FSA Headquarters, Program Delivery and Field Operations
                
FROM:     Kenneth D. Ackerman     /s/ KDA 1/2/97
          Acting Administrator
     
SUBJECT:  1997 Cotton (Upland and ELS) Price Election Change
     
     
The Risk Management Agency (RMA) today announced  price election changes
for the 1997 Upland cotton program, revising those previously announced
December 24, 1996, through Informational Memorandum: R&D-96-081,
Addendum - 1997 Actuarial Table.
     
The regional price election for upland cotton is outlined below.  ELS
cotton remains at $1.15 per pound for the 1997 crop year.
     
                          1997 Election               CAT Coverage
                                ------Dollars Per Pound------
     
Upland Cotton      
Southeastern                 0.70                          0.42
   AL, FL, GA, NC, SC, VA,
   and East TN 
     
South Central                0.69                          0.42
   AR, LA, MO, MS, West TN,
   and South TX
     
Southwest                    0.67                          0.41
   KS, OK, East NM, 
   and North TX
     
Western                      0.72                          0.44
   AZ, CA, West NM,
   and Southwest TX
       
ELS Cotton
All States                   1.15                          0.69
     
This price election increases the previously announced price election
for upland cotton.  All insurance companies must notify insureds of this
change.  Those cotton policyholders with a January 15, 1997, sales
closing date have until February 17, 1997, to make a selection. All
other policyholders must make a selection on or before the sales closing
date.  Subsidy is based on the new price election, therefore, insureds
using the price election previously announced may receive a lower level
of subsidy unless a new selection is made prior to the dates specified
herein.
     
Catastrophic coverage will be 60 percent of the new maximum price
election.