INFORMATIONAL MEMORANDUM: R&D-97-014
     
TO:      All Reinsured Companies
         All Risk Management Field Offices 
         FSA Headquarters, Program Delivery & Field Operations -
         Information Only
    
FROM:    Tim B. Witt   /s/ R.  E. Waggoner (for)   2/19/97
         Acting Deputy Administrator
     
SUBJECT: 1997 Income Protection and Crop Revenue Coverage Price
         Announcements for Cotton and Soybeans
     
     
---------------------------Income Protection-----------------------------
  
The 1997 projected price for Income Protection (IP) Cotton is $0.77 per
pound.  This projected price is defined in the Cotton crop provisions to
be "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."
     
The 1997 projected price for IP Soybeans with a sales closing date prior
to March 15, 1997, is $6.89 per bushel.  This projected price is defined
in the IP Soybean crop provisions as "the average derived by totaling
the final closing daily settlement prices for the insured crop year
Chicago Board of Trade (CBOT) November soybean future contracts of each
trading day from January 15 through February 14 prior to the sales
closing date, and dividing that total by the number of daily settlement
prices."  
     

---------------------------Crop Revenue Coverage------------------------- 
   
The 1997 base price for Crop Revenue Coverage (CRC) Cotton is $0.73 per
pound.  This base price is defined in the CRC Commodity Exchange
Endorsement to be "ninety-five percent (95%) of the Average Daily
Settlement Price from January 15th to February 14, of the New York
Cotton Exchange December cotton futures contract."
      
The 1997 base price for CRC Soybeans with a sales closing date prior to
March 15, 1997, is $6.40 per bushel.  This base price is defined in the
Commodity Exchange Endorsement to be "ninety-five percent (95%) of the
December Average Daily Settlement Price for the Chicago Board of Trade
(CBOT) September soybean futures contract." 
     
The projected price for IP and CRC soybeans with a March 15 sales
closing date will be announced by March 5.