BULLETIN NO.: MGR-99-013

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

FROM:        Kenneth D. Ackerman     /s/ Ken Ackerman
             Administrator


SUBJECT:     Allowable Costs for Peaches in Colorado and Missouri

BACKGROUND:

The 1999 Peach Crop Insurance Provisions 98-034 states in Section 1. "Actual price per bushel: In the absence of a FOB shipping point price from the Market News Service, the price per bushel of U.S. Extra No.1 '2 inch' peaches will be the total of the price election and allowable costs for the undamaged peaches;"

The Market News Service peach prices are not available for Colorado and Missouri and the statements pertaining to the applicable average FOB shipping point price for peaches were inadvertently deleted from the 1999 Peach Special Provisions.

ACTION:

The price election will be used to determine the applicable average FOB shipping point price according to the Peach Crop Insurance Provisions.

For Colorado:

Allowable cost for fresh peaches for determining actual price per bushel in Colorado will be $5.00 per bushel. Allowable cost for processing peaches for determining actual price per bushel in Colorado will be $1.75 per bushel.

BULLETIN NO.: MGR-99-013 2

For Missouri:

Allowable cost for fresh peaches for determining actual price per bushel in Missouri will be $5.00 per bushel. Allowable cost for processing peaches for determining actual price per bushel in Missouri will be $1.75 per bushel.

DISPOSAL:

This bulletin is effective until March 1, 2000.