August 21, 1998


INFORMATIONAL MEMORANDUM: R&D-98-039  

TO:     All Reinsured Companies
                         All Risk Management Field Offices
          
FROM:   Tim B. Witt /s/ Tim B. Witt
                         Deputy Administrator
                         
SUBJECT:       Addendum to the FCI-35 Actuarial Tables, 1999 Wheat Crop Revenue Coverage -
               Price Factors


BACKGROUND:

The final 1999 Wheat Crop Revenue Coverage (CRC) high and low price factors are available
for market areas where CRC Wheat is based upon the Chicago Board of Trade (CBOT) and the
Kansas City Board of Trade (KCBOT).  To allow for early marketing of wheat in the areas where
CRC Wheat is based upon the Portland Grain Exchange (PGE) and the Minneapolis Grain
Exchange (MGE), ESTIMATES are being made available for the high and low price factors. 
The final price factors for these two commodity exchanges will be released the first week of
September.      

ACTION:

This is an addendum to the FCI-35 actuarial tables for the purpose of announcing the
APPROVED final 1999 CRC Wheat CBOT and KCBOT price factors as follows:
        
        Board of         Applicable                       Price Factors
        Trade            States                         Low           High

        CBOT     AL, GA, KY, LA, MS, NC, SC, TN, & VA  .305           .264
        
        CBOT     IL, IN, MI, OH, & WI                  .300           .277

        KCBOT    AZ, AR, CO, KS, MO, NM, OK, & TX      .303           .296

        KCBOT    IA, MT, NE, SD, & WY                  .302           .302      



                                 INFORMATIONAL MEMORANDUM: R&D-98-039                           2 

ESTIMATES for the low and high price factors for the 1999 CRC Wheat PGE and MGE are as
follows:
      
        Board of         Applicable                    Price Factors
        Trade            States                        Low            High

        PGE      CA, ID, OR, UT, WA                    .341 *         .310 *
        
        MGE      CO, IA, MT, SD, & WY                  .255 *         .268 *         
        MGE      AZ & CA                          .536 *              .539 *

* CAUTION: THESE PRICE FACTORS ARE FOR THE PURPOSE OF PROVIDING
PRODUCERS PREMIUM ESTIMATES ONLY, AND PRODUCERS MUST BE ADVISED
ACCORDINGLY.

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

This information must be provided for CRC Wheat to all applicable agents prior to the sales
closing date.

DISPOSAL:  

This informational memorandum is for the purpose of transmitting/updating information and the
expiration date is December 31, 1998.