BULLETIN NO.: MGR-98-028

TO:     	All Reinsured Companies
        	All Risk Management Field Offices
        	All Other Interested Parties
            
FROM:    	Kenneth D. Ackerman    /s/ Ken Ackerman 			October 6, 1998
   		Administrator

SUBJECT: Reinsurance and Subsidy Provided on Plans of Insurance Approved by the             		Federal Crop Insurance Corporation (FCIC) Board of Directors (Board) on                         		September 15, 1998

On September 15, 1998, the FCIC Board approved the Adjusted Gross Revenue (AGR) pilot
program, the Group Risk Income Protection (GRIP) program, and a change to the Revenue
Assurance (RA) policy that adds a fall harvest price option.  Each of these crop insurance 
plans will receive reinsurance and administrative and operating (A&O) expense subsidy provided under the Standard Reinsurance Agreement (SRA) as follows:

  AGR -  Reinsurance will be provided under the terms for revenue insurance plans, and A&O
         expense subsidy will be 24.5% of net book premium.  An amendment, which is
         optional, is being drafted to incorporate AGR into the SRA.

  GRIP-  Reinsurance will be provided under the terms for revenue insurance plans, and A&O
         expense subsidy will be the same percentage provided the Group Risk Plan,
         currently 22.7% of net book premium.

  RA -   Reinsurance will be provided under the terms provided revenue insurance plans. 
         A&O expense subsidy for RA policies with the fall harvest price option will be
         21.1% of net book premium on the combined premium of the policy and the option. 
         This is the same percentage provided revenue insurance plans that can increase
         liability whenever the market price at the time of harvest exceeds the market price
         at the time of planting.  For RA policies without this option, it will be 24.5% of 
	   the net book premium.

If you should have any questions, please contact Dave Miller at (202) 720-9830.