INFORMATIONAL MEMORANDUM: R&D-97-040
     
TO:       All Reinsured Companies
          All Risk Management Agency Field Offices
               
FROM:     Tim B. Witt                /s/ Tim B. Witt 6/11/97
          Deputy Administrator
                             
SUBJECT:  1998 Wheat Crop Revenue Coverage - Price Factor Estimates
     
     
BACKGROUND:
     
The Wheat Crop Revenue Coverage (CRC) low and high price factors are not
yet available for market areas where CRC-Wheat is based upon the Chicago
Board of Trade (CBOT) and the Kansas City Board of Trade (KCBOT).  These
price factors will be released as an actuarial addendum the first week
of July and where CRC-Wheat is based upon the Minneapolis Grain Exchange
(MGE) and Portland Grain Exchange (PGE), the first week of September. 
To allow for early marketing of Wheat CRC, ESTIMATES for low and high
price factors may be used. 
     
ACTION:
     
Reinsured Companies, at their discretion, may choose to begin marketing
Wheat CRC using the following estimated low and high price factors: 
     
                    -----------------------------------
                              :      Price Factors
                     Board of :------------------------
                      Trade   :    Low     :    High
                    -----------------------------------
                      CBOT    :   0.302*   :   0.302*
                      KCBOT   :   0.303*   :   0.323*
                      MGE     :   0.233*   :   0.226*
                      PGE     :   0.345*   :   0.318*
                    -----------------------------------
     
               * CAUTION: These price factors are only estimates and
                 producers must be advised that premium estimates are
                 estimates only.
     
Reinsurance and associated premium subsidies will only be applicable to
the FCIC approved low and high price factors issued via the Actuarial
Addendum.