September 18, 1998


INFORMATIONAL MEMORANDUM: R&D-98-045

TO:      All Reinsured Companies
         All Risk Management Agency Field Offices

FROM:    Tim B. Witt         /s/ Tim B. Witt
         Deputy Administrator

SUBJECT:      1999 Crop Revenue Coverage (CRC) Base Prices and Price Factors and
              1998/1999 Income Protection (IP) Price Announcements

                      Crop Revenue Coverage

The 1999 base price for CRC Wheat in States whose base price is determined by the exchange
and contract month is shown in the table below. 

                   BOARD/               CONTRACT          BASE PRICE
CROP              EXCHANGE               MONTH          100%      95%


Winter Wheat       CBOT                July 1999        $2.99    $2.84

Winter Wheat       KCBOT               July 1999        $3.16    $3.00

Wheat              CBOT(PGE Basis)     September 1999   $3.40    $3.23

Spring Wheat       KCBOT/MGE           July 1999        $3.16    $3.00
  (In counties with a September 30 Cancellation Date.)

The final 1999 CRC Wheat high and low price factors in States whose base price is determined
by the exchange and contract month is shown below.

                   BOARD/              CONTRACT         PRICE FACTORS
CROP              EXCHANGE               MONTH          Low       High


Wheat           CBOT(PGE Basis)     September 1999      .404      .427

Spring Wheat    KCBOT/MGE           July 1999           .270      .299
 (In counties with a September 30 Cancellation Date.)


                        Income Protection

The 1999 projected price for IP Wheat in States whose projected price is determined by the
exchange and contract month is shown in the table below.

                   BOARD/               CONTRACT
CROP              EXCHANGE                MONTH          PROJECTED PRICE


Wheat              CBOT              July 1999                 $2.99

Wheat          CBOT(PGE Basis)       September 1999            $3.40

The 1998 harvest price for IP Grain Sorghum in counties with a January 15 or February 15
sales closing date is shown below.

                   BOARD/         CONTRACT
CROP             EXCHANGE          MONTH       HARVEST PRICE


Grain Sorghum     CBOT         September 1998      $1.79


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