INFORMATIONAL MEMORANDUM: R&D-96-006

TO:       All Reinsured Companies
          All Risk Management Field Offices
          FSA Headquarters, Program Delivery and Field Operations
          
FROM:     Tim B. Witt
          Director
          Research and Development Division

SUBJECT:  1996 Projected Price for Income Protection - Cotton


The 1996 projected price for Income Protection - Cotton is $0.78 per pound. 
This projected price, as stated in the Income Protection-Cotton Crop
Provisions, is the average derived by totaling the final closing daily
settlement prices for the current year New York Cotton Exchange December
cotton futures contract for each trading day from January 15 through February
14 of the current year, and dividing that total by the number of daily
settlement prices.

Income Protection is available for limited and additional coverage only.  
This price is not applicable to traditional MPCI cotton or to catastrophic 
coverage.

If you have any questions or need additional information, please contact
LeWayne Jansonius at (816) 926-3703.