BULLETIN NO.: MGR-97-004

TO:       All Reinsured Companies
          All Risk Management Field Offices
          All Other Interested Parties

FROM:     Kenneth D. Ackerman
          Acting Administrator

SUBJECT:  Crop Revenue Coverage, Income Protection and Revenue Assurance Pilot
          Programs of Insurance

The Federal Crop Insurance Corporation's (FCIC) Board of Directors (Board) has
recently approved expansion of Crop Revenue Coverage (CRC) for corn and
soybeans, new CRC programs for cotton, grain sorghum and spring wheat, and
expansion of Income Protection (IP)for grain sorghum and soybeans.  The Board
also approved a new alternative product known as Revenue Assurance, a revenue
based insurance plan.  Both crop programs, CRC and Revenue Assurance, have
been approved for reinsurance and premium subsidy, including subsidy for
administrative and operating expenses.  Both insurance plans are designed as
alternatives for a standard multiple peril crop insurance policy.

The products are now approved and will be available to all reinsured companies
to write for the 1997 crop year.  However, sales of CRC will begin upon timely
receipt from American Agrisurance, Inc. of the appropriate premium rates,
review of those rates by FCIC and publication of the rates and policies. 
Sales of IP and Revenue Assurance will begin upon pbulication of the rates and
policies.  All of the approved insurance programs' policy language, forms and
rate factor tables will be available through the Reporting Organization Server
in the very near future.
  
Beginning this spring, new CRC programs will be available on:

Cotton         Arizona - all counties, 
               Georgia - all counties, 
               Oklahoma - all counties,
               Texas - (Armstrong, Briscoe, Castro, Deaf Smith, Floyd, Gray, 
                Hale, Hartley, Parmer, Randall, Swisher, Andrews, Bailey, 
                Cochran, Crosby, Dawson, Gaines, Glasscock, Hockley, Howard, 
                Lamb, Lubbock, Lynn, Martin, Midland, Terry, Yoakum, Borden, 
                Childress, Collingsworth, Cottle, Dickens, Donley, Foard, 
                Garza, Hall, Hardeman, Kent, King, Motley, Wheeler, Wichita, 
                Wilbarger, Baylor, Coleman, Fisher, Haskell, Jones, Knox, 
                Mitchell, Nolan, Runnels, Scurry, Stonewall, Taylor)

Grain Sorghum  Colorado - all counties, 
               Nebraska - all counties, 
               Oklahoma - all counties,
               Kansas (Gove, Greeley, Lane, Logan, Ness, Scott, Trego, 
                Wallace, Wichita, Clark, Finney, Ford, Grant, Gray, Hamilton, 
                Haskell, Hodgeman, Kearny, Meade, Morton, Seward, Stanton, 
                Stevens, Barton, Dickinson, Ellis, Ellsworth, 
                Lincoln, McPherson, Marion, Rice, Rush, Russell, Saline,
                Atchison, Brown, Doniphan, Jackson, Jefferson, Leavenworth, 
                Marshall, Nemaha, Pottawatomie, Riley, Wyandotte), 
               Missouri (Bates, Cass, Cedar, Henry, Jackson, Johnson, LaFayette, St. 
                Clair, Vernon), 
               South Dakota (Aurora, Beadle, Brule, Buffalo, Hand, Hughes, Hyde, 
                Jerauld, Sully, Gregory, Jones, Lyman, Mellette, Todd, Tripp)

Spring Wheat   Minnesota - all counties, 
               Montana (Daniels, Roosevelt, Sheridan, Valley),
               North Dakota (Dunn, McKenzie, McLean, Mercer, Oliver, Eddy, 
                Foster, Kidder, Sheridan, Stutsman, Wells, Barnes, Cass, 
                Griggs, Steele, Traill, Dickey, LaMoure, Logan, McIntosh, 
                Ransom, Richland, Sargent), 

               ** CRC wheat coverage was available last fall in Kansas,
               Michigan, Nebraska, South Dakota, Texas, Washington and 
               designated counties in Montana.

Beginning this spring, expansion of Crop Revenue Coverage (CRC) for corn and
soybeans will be available in:

Corn           Colorado - all counties, 
               Illinois - all counties, 
               Indiana - all counties, 
               Kansas - all counties, 
               Michigan - all counties, 
               Minnesota - all counties, 
               Missouri - all counties, 
               Ohio - all counties, 
               Oklahoma - all counties, 
               South Dakota - all counties, 
               Texas - all counties

Soybeans       Illinois - all counties, 
               Indiana - all counties, 
               Kansas - all counties, 
               Michigan - all counties, 
               Minnesota - all counties, 
               Missouri - all counties, 
               Ohio - all counties, 
               Oklahoma - all counties, 
               South Dakota - all counties, 
               Texas - all counties

               ** CRC corn and soybean coverage was available beginning with 
               the 1996 crop year in all counties in Iowa and Nebraska.

Revenue Assurance is designed to protect a producer's loss of revenue
resulting from low prices, low yields, or a combination of both.  The Revenue
Assurance policy provides coverage on basic units, optional units, enterprise
units, or whole-farm units as selected by the producer.  Beginning this
spring, Revenue Assurance will be available on:

Corn           Iowa - all counties
Soybeans       Iowa - all counties

CRC and Revenue Assurance plans of insurance will only be available in these
counties if an existing multiple peril crop insurance program is also
available for the crop.

IP policies protect producers against reductions in gross income when a crop's
price or yield declines from early-season expectations.  Beginning this
spring, expansion of IP for grain sorghum and soybeans will be available in:

Grain Sorghum  Texas (Armstrong, Bailey, Carson, Castro, Cochran, Dallam, Deaf 
                Smith, Gray, Hale, Hansford, Hartley, Hockley, Hutchinson, 
                Lamb, Moore, Ochiltree, Oldham, Parmer, Potter, Randall, 
                Sherman, Swisher, Terry, Yoakum)

Soybeans       Illinois (Champaign, Ford, Iroquois, Livingston, McLean), 
               Indiana (Benton, Fountain, Warren), 
               Iowa (Adair, Audubon, Cass, Dallas, Guthrie, Shelby) 
               Arkansas (Arkansas, Ahley, Chicot, Clay, Conway, Craighead, 
                Crawford, Crittenden, Cross, Desha, Drew, Faulkner, Franklin, 
                Greene, Hempstead, Independence, Jackson, Jefferson, Johnson, 
                LaFayette, Lawrence, Lee, Lincoln, Little River, Logan, Lonoke, 
                Miller, Mississippi, Monroe, Perry, Phillips, Poinsett, Pope, 
                Prairie, Pulaski, Randolph,Sebastian, Sevier, St. Francis, 
                White, Woodruff, Yell)

IP crop insurance policies will continue to be reinsured under the current
terms of the 1995/97 Standard Reinsurance Agreement.

Companies who wish to market CRC and/or Revenue Assurance programs under the
terms and conditions set forth in the Memorandum(s) of Understanding must
complete and submit the attached Optional Amendment No. 3 for CRC crop
insurance policies, and/or Optional Amendment No. 4  for Revenue Assurance
crop insurance policies.

The Amendments are to the current 1995/1997 Standard Reinsurance Agreement. 
Section II.B. applies to the aggregate crop insurance premium including CRC
and Revenue Assurance premiums written under the Amendments.  Maximum cession
limitations outlined in Exhibit 15 of the Plan of Operations apply to the
aggregate premiums for all plans of insurance. The applicable administrative
and operating expense reimbursement and the company's share of underwriting
gain or loss will be calculated on the basis of the CRC and/or Revenue
Assurance premium associated with the policies written under the Amendments.  

Attached are two copies of each Amendment and the applicable Memorandum(s) of 
Understanding between the Federal Crop Insurance Corporation and the
submitting companies for the CRC and Revenue Assurance programs.  Each of the
four documents must be signed as an original and returned via overnight mail
by the date stated below.  The Amendments should be signed by a duly
authorized person empowered with signature authority by the primary insurance
company reinsured under the Standard Reinsurance Agreement.

Signed amendments must be sent, via overnight mail, to the following address
by C.O.B. February 10, 1997:

     OVERNIGHT MAIL::    USDA/Risk Management Agency
                         Insurance Services/Reinsurance Services Division
                         E. Heyward Baker, Acting Director
                         1400 Independence Avenue, SW
                         Stop Code: 0530
                         Room 6727-South Building
                         Washington, DC 20250
                         Phone:  (202) 720-4232;

Companies may also fax signed copies of each amendment to facilitate the
marketing and sales of CRC and Revenue Assurance crop insurance policies. 
Signed copies may be faxed as soon as possible to (202) 690-3604.  However,
all signed originals must be received by February 10, 1997. 

Questions regarding this bulletin may be addressed to E. Heyward Baker, Acting
Director, Reinsurance Services Division, Insurance Services at (202) 720-4232.

Attachments: (Will be sent via overnite mail)