1998 Standard Reinsurance Agreement
(Rev. 6/29/98)

                     AMENDMENT NO. 1 TO THE 1998 STANDARD REINSURANCE AGREEMENT

The Standard Reinsurance Agreement between the Federal Crop Insurance Corporation and the
undersigned Company is hereby amended for the 1999 and subsequent reinsurance years, as 
follows:

(I) Section III.A.2. is amended to read as follows:

2.   A&O subsidy for eligible crop insurance contracts will be determined as set forth below 
     and will be paid to the Company on the monthly summary report after the Company submits, 
     and FCIC accepts, the information needed to accurately establish the premium for such 
     eligible crop insurance contracts.  Notwithstanding the provisions of this section, 
     under no circumstances will A&O subsidy be paid in excess of the amount authorized by 
     statute.

     a.   For any eligible CAT crop insurance contract, zero percent of net book premium.

     b.   For eligible crop insurance contracts that provide coverage under GRP, 22.7 percent
          of the net book premium attributed to such eligible crop insurance contracts.

     c.   Whenever the coverage level selected by the eligible producer does not exceed 75
          percent of the recorded or appraised average yield for eligible crop insurance
          contracts not specified in 2.a. or b.:

          (i)  For revenue insurance plans that can increase liability whenever the market
               price at the time of harvest exceeds the market price at the time of planting,
               21.1 percent of the net book premium attributed to such eligible crop
               insurance contracts; and

          (ii) For revenue insurance plans that can not increase liability whenever the
               market price at harvest exceeds the market price at the time of planting, 24.5
               percent of the net book premium attributed to such eligible crop insurance
               contracts, not to exceed the amount that would have been paid had each
               eligible producer purchased limited or additional coverage under an
               insurance plan that insures loss of individual yield; and

          (iii)     For all other eligible crop insurance contracts, 24.5 percent of the net 
                    book premium attributed to such eligible crop insurance contracts.

     d.   Whenever the coverage level selected by the eligible producer exceeds 75 percent of
          the recorded or appraised average yield for eligible crop insurance contracts not
          specified in 2.a. or b., 1.0 percent of the net book premium for such contracts plus 
          the amount calculated in accordance with section 2.c. for coverage at 75 percent 
          of the recorded or appraised average yield and at the projected market price 
          selected by the policyholder.  The A&O subsidy paid under this section may not 
          exceed the percentage rates specified in 2.c., multiplied by the net book premium 
          for the coverage and projected market price elected by the policyholder.

(II) Section III.B. is amended to read as follows:

B.   The Company shall remit to FCIC, in accordance with Manual 13, the following
     administrative fees collected from eligible producers: 

     1.   For CAT:

          a.   Basic fee:  the greater of $50 or 10 percent of the net book premium for each
               eligible crop insurance contract; and

          b.   Additional fee:  $10 for each eligible crop insurance contract.

          c.   In the event the eligible producer is a limited resource farmer as defined in
               the regulations, the Company shall submit the required information to FCIC
               in accordance with Manual 13 and FCIC shall waive the appropriate fees on
               the monthly summary report.

     2.   For limited coverage:

          a.   $50 per eligible crop insurance contract, not to exceed $200 per county and
               $600 for all counties combined for each eligible producer.

          b.   In the event the eligible producer is a limited resource farmer as defined in
               the regulations, the Company shall submit the required information to FCIC
               in accordance with Manual 13 and FCIC shall waive the appropriate fee on
               the monthly summary report.

     3.   For additional coverage, an additional fee of $20 per eligible crop insurance 
          contract.

(III) Section IV is amended to read in its entirety as follows:

FCIC will pay to the Company an amount equal to 11.0 percent of the total net book premium for
eligible CAT crop insurance contracts.  The loss adjustment expense specified in this section 
will be included in the monthly summary report containing the data obtained from acreage 
reports that have met the processing provisions specified in Manual 13.

(IV) Section V.B.9. is added to read as follows:

9.   Policyholders who do not pay administrative fees on or before the termination date are
ineligible because of indebtedness and the Company shall report such via the Ineligible File 
Tracking System.






The undersigned Company representative acknowledges that the Company's Board of Directors has
authorized the Company to enter into this Amendment of the 1998 Standard Reinsurance Agreement.

                      APPROVED AND ACCEPTED

                               for

Federal Crop Insurance Corporation      The Company

                                                                                                                          
Signature                               Signature

                                                                                                                     
Name                                    Name

                                                                                                                     
Title                                   Title

                                                                                                                     
Date                                    Date