BULLETIN NO.:  MGR-97-017

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

FROM:    Kenneth D. Ackerman
         Administrator                  

SUBJECT: Revised 1997 Standard Reinsurance Agreement 2nd Installment Rates


BACKGROUND:

The Federal Crop Insurance Corporation (FCIC) amended the 1995 Standard
Reinsurance Agreement (Agreement) for the 1997 reinsurance year to
incorporate two new plans of crop insurance coverage, Crop Revenue Coverage 
(CRC) and Revenue Assurance (RA).  The administrative expense
reimbursemene (AER) subsidies paid for CRC and RA are not equal. Because
of the different AER subsidy rates for each plan of insurance, including
the Group Risk Plan (GRP), the 1st and 2nd installments paid under
sections III.E. and III.F. of the Agreement are not equal.  To reduce the
burden associated with different 2nd installment rates, FCIC will
adjust the amounts of 1st and 2nd installment rates to ensure that the 2nd 
installment is equal for all plans of insurance coverage.  This action
should reduce the number of monthly accounting report worksheets necessary
to complete each monthly accounting.

ACTION:

The new 1st and 2nd installment rates for each plan of insurance are as
follows:

           GRP              CRC              RA          All Other Plans
 
1st         20               18              22               22
2nd          7                7               7                7
            27               25              29               29


Please contact the Reinsurance Services Division at (202) 720-4232, if you
have any questions.