INFORMATIONAL MEMORANDUM: R&D-96-038  

TO:       All Reinsured Companies
          All Risk Management Agency Field Offices
          
FROM:     Tim B. Witt
          Director
          Research and Development Division

SUBJECT:  1997 Wheat Crop Revenue Coverage (CRC) - Price Factor Estimates


BACKGROUND:

Questions have been raised concerning the ability of agents to quote 1997 
CRC-Wheat  premiums in those states and/or areas where the CRC low price and 
high price factors have not been published.  Bulletin No. MGR-96-042 advised 
that all other price factors would be released as an actuarial addendum, most 
likely within the first week of September.  The current design of CRC-Wheat 
in these specific areas leaves limited time for marketing.

ACTION:

Reinsured Companies, at their discretion may choose to begin marketing 
CRC-Wheat in areas where the low and high price factors are not yet available.  
For those areas where CRC-Wheat is based upon the Minneapolis Grain Exchange 
(MGE) and the Portland Grain Exchange (PGE), the following 1996 crop year low 
and high price factor ESTIMATES are being made available.


Board of                      Price Factors
Trade          Crop           Low       High

MGE            Wheat          0.233*    0.224*
PGE            Wheat          0.352*    0.365*


* CAUTION: THESE PRICE FACTORS ARE ONLY ESTIMATES AND PRODUCERS MUST BE 
           ADVISED THAT PREMIUM ESTIMATES ARE ESTIMATES ONLY.

Reinsurance and associated subsidies will only be applicable to the FCIC 
approved low and high price factors issued in September via the Actuarial 
Addendum.