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»	Group Risk Protection

Price Announcement Info


United States Department of Agriculture • Risk Management Agency 1400 Independence Avenue SW, Stop 0801, Washington, DC 20250-0801
September 20, 2005 INFORMATIONAL MEMORANDUM: R&D-05-042 TO: All Reinsured Companies All Risk Management Agency Field Offices All Other Interested Parties FROM: Tim B. Witt /s/ Tim B. Witt Deputy Administrator SUBJECT: Addendum to the 2006 Crop Year (CY) Actuarial Documents (Special Provisions) – 2006 CY (Crop Revenue Coverage (CRC)) Base Prices and Low and High Price Factors; (Group Risk Income Protection (GRIP)) Expected Prices and Volatility Factors; (Income Protection (IP)) Projected Prices; and (Revenue Assurance (RA)) Projected Harvest Prices and Price Volatility Factors Announcement CROP REVENUE COVERAGE The following base prices and low and high price factors are approved for 2006 CY CRC Wheat.


				Low Price	High Price
Crop	Exchange	Contract	Base Price	Factor	Factor

Winter Wheat	CBOT	July	$3.50/bu	0.420	0.420
(For all applicable States except New York)

Winter Wheat	CBOT	July	$2.98/bu	0.420	0.420
(Only applicable to New York)

Winter Wheat	KCBOT	July	$3.52/bu	0.364	0.364
(For all applicable states)

Spring Wheat	KCBOT	July	$3.52/bu	0.364	0.364
(For spring wheat in counties with a 9/30 cancellation date)

Wheat	CBOT (PME Basis)	September	$4.13/bu	0.496	0.496
(For all applicable states)


GROUP RISK INCOME PROTECTION The following expected prices and price volatility factors are approved for 2006 CY GRIP Winter Wheat in States whose expected price is determined by the exchange and contract shown below.

			Expected	Volatility
Crop	Exchange	Contract	Price	Factor
Winter Wheat	CBOT	July	$3.50	0.19
Winter Wheat	KCBOT	July	$3.52	0.18

INCOME PROTECTION The following projected prices are approved for 2006 CY IP Wheat in States whose projected price is determined by the exchange and contract shown.

			Base
Crop	Exchange	Contract	Price
Wheat	CBOT	July	$3.50/bu
Wheat	CBOT (PGE Basis)	September	$4.13/bu

REVENUE ASSURANCE The following projected harvest prices and price volatility factors are approved for 2006 CY RA Winter Wheat in States whose projected harvest price is determined by the exchange and contract shown below.

			Projected	Volatility
Crop	Exchange	Contract	Harvest Price	Factor
Winter Wheat	CBOT	July	$3.50	0.19
Winter Wheat	KCBOT	July	$3.52	0.18

DISPOSAL DATE This Informational Memorandum is for the purpose of transmitting information and the expiration date is December 31, 2005.