INFORMATIONAL MEMORANDUM:    R&D-97-020
          
TO:      All Reinsured Companies
         All Risk Management Field Offices 
         FSA Headquarters, Program Delivery and Field Operations
     
FROM:    Tim B. Witt /s/ Tim B.  Witt 03/24/97
         Deputy Administrator
     
SUBJECT: 1997 Market Prices for Tobacco (Guaranteed Production Plan)
         Endorsement and Quota Plan
     
     
The 1997 price support level for the purposes of Section 7b (1)(a) and
Section 10d (1) of the Guaranteed Tobacco Endorsement 90-35 for tobacco
types 11-14, 21, 22-23, 35-36,37, 54-55 are listed below:
     
         Type           Support Price
         11-14            $1.62
         21               $1.50
         22-23            $1.62
         35-36            $1.40
         37               $1.33
         54-55            $1.17
     
The 1997 support price for type 31 (Quota) tobacco for the purposes of
Section 4b of the Quota Plan of Tobacco Crop Insurance Policy 85-36 is
$1.76 minus $0.06 per pound or $1.70 per pound.  Six cents per pound is
deducted for warehouse charges as specified in Section 4b in the Quota
Plan.