RA and CRC Price Determination
      
   SPRING PRICE DETERMINATION (RA and CRC)

     *CORN = February average daily settlement for CBOT(Chicago Board of Trade)
             December futures       
     *SOYBEANS = February average daily settlement for CBOT November futures
   
   HARVEST PRICE DETERMINATION (CRC)

     *CORN = October average daily settlement for CBOT December futures      
        ***There is a limit of $1.50 per bushel increase or decrease for fall price of corn  
 
     *SOYBEANS = October average daily settlement for CBOT November futures 
        ***There is a limit of $3.00 per bushel increase or decrease for fall price of soybeans
   
   HARVEST PRICE DETERMINATION (RA)
    
     *CORN = November average daily settlement for CBOT December futures
     *SOYBEANS = October average daily settlement for CBOT November futures
         
        ***There is no fall upward price limitation for RA

 Multi-Peril Crop Insurance (MPCI) 
      
         MPCI is a federally regulated and subsidized yield guarantee program that covers 
         yield losses due to adverse weather, insects, wildlife, diseases, replanting,
         prevented planting, poor quality and even earthquakes and volcanic eruption.
         
         Qualifying claims reimburse lost bushels below the Actual Production History (APH) 
         per-acre guarantee at an elected price per bushel.

 GRIP (Group Risk Income Protection)
    
      GRIP is a county-based product.  Coverage is derived from both the National Agriculture
      Statistics Service(NASS) as well as prices from the Chicago Board of Trade(CBOT).  
      
      GRIP provides coverage based on NASS yields calculated by USDA as well as futures
      prices to provide price information.  GRIP also has a harvest-price option that
      provides upward price protection.

      GRIP is a revenue insurance product that is based on the performance of the entire
      county.  The risk with this type of insurance product is that a grower can suffer a
      total loss and receive NO payment under GRIP because the county yield and/or harvest
      price did not decline sufficiently to trigger an indemnity payment.

      We offer GRIP; however, we want you to fully understand it.  The following are what
      I call "Qualifying Questions" if you are considering GRIP:

         1. Are you highly leveraged financially?
         2. Can you stand a total crop loss and not get an indemnity(not have
              crops to cover contracts)?  
         3. Is hail a threat to your crops?
         4. Is replanting of crops in issue?
         5. If you do have a loss can you wait until the next spring following
              harvest to get paid?
         6. Are you going to agressively forward contract grain?
         7. Are you willing to sign a disclaimer form?
         8. Will your lender use GRIP for collateral?
       
      Only consider GRIP if the above questions pose no concerns for your operation.  
      We have quotes available.