1.  

INFORMATIONAL MEMORANDUM: PM–16-017

United States Department of Agriculture


Farm and Foreign Agricultural Services


Risk Management Agency


1400 Independence Avenue, SW
Stop 0801
Washington, DC  20250-0801

Date

March 01, 2016

To:

All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties

From:

Tim B. Witt /s/ Tim B. Witt    3/1/2016

Subject:

2016 Crop Year (CY) Common Crop Insurance Policy and Area Risk Protection Insurance Projected Prices and Volatility Factors; Malting Barley Endorsement Projected Price Component and Volatility Factor; and Hybrid Seed Price Endorsement - Hybrid Seed Corn Prices
Common Crop Insurance Policy & Area Risk Protection Insurance

The 2016 CY projected prices shown below are approved for the following plans of insurance:  Yield Protection, Area Yield Protection, Revenue Protection, Area Revenue Protection, Revenue Protection with Harvest Price Exclusion and Area Revenue Protection - Harvest Price Exclusion.  The 2016 CY volatility factors shown below are approved for the following plans of insurance:  Revenue Protection, Area Revenue Protection, Revenue Protection with Harvest Price Exclusion and Area Revenue Protection - Harvest Price Exclusion.  The projected prices and volatility factors apply to policies with a March 15 sales closing date, unless otherwise indicated, and are applicable for the crops, practices, types and states indicated below:


Crop/Practice/Type/State Exchange Contract Projected Price Volatility Factor
Barley
Kansas		 CBOT July Corn $3.26/bushel 0.11 
Barley Organic Practice
Kansas		 CBOT July Corn $5.89/bushel 0.11
Barley
Iowa, Nebraska, New York & Pennsylvania		 CBOT September Corn $3.31/bushel 0.15
Barley - Organic Practice
Iowa, Nebraska, New York & Pennsylvania  		 CBOT September Corn $6.06/bushel 0.15 
Barley
Colorado, Idaho, Maine, Michigan, Minnesota, Nevada, North Dakota, Oregon, South Dakota, Utah, Vermont, West Virginia Wisconsin & Wyoming 		 CBOT September Corn $3.31/bushel 0.16
Barley - Organic Practice
Colorado, Idaho, Maine, Michigan, Minnesota, Nevada, North Dakota, Oregon, South Dakota, Utah, Vermont, West Virginia Wisconsin & Wyoming		 CBOT September Corn $6.06/bushel 0.16
Barley
Alaska		 CBOT December Corn $3.87/bushel 0.16
Barley - Organic Practice
Alaska		 CBOT December Corn $8.08/bushel 0.16
Barley
California		 CBOT December Corn $3.38/bushel 0.16
Barley - Organic Practice
California		 CBOT December Corn $6.19/bushel 0.16
Barley
(March 15 Sales Closing Date, Winter Types without Winter Coverage Endorsement)
Idaho, Oregon & Washington (previously released 9/17/2015) 		CBOT September Corn $3.43/bushel 0.24
Barley – Organic Practice
(March 15 Sales Closing Date, Winter Types without Winter Coverage Endorsement)
Idaho, Oregon & Washington (previously released 9/17/2015		 CBOT September Corn $6.28/bushel 0.24
Barley
(September 30 Sales Closing Date, Spring Type)
Kansas 		CBOT July Corn $3.26/bushel 0.11
Barley – Organic Practice
(September 30 Sales Closing Date, Spring Type)
Kansas		 CBOT July Corn $5.98/bushel 0.11
Barley
(September 30 Sales Closing Date, Spring Types)
New York & Pennsylvania 		CBOT September Corn $3.31/bushel 0.15
Barley – Organic Practice
(September 30 Sales Closing Date, Spring Types)
New York & Pennsylvania
 CBOT September Corn $6.06/bushel 0.15
Barley
(September 30 Sales Closing Date, Spring Types)
Colorado, Idaho, Oregon & Washington		 CBOT September Corn $3.31/bushel 0.16
Barley – Organic Practice
(September 30 Sales Closing Date, Spring Types)
Colorado, Idaho, Oregon  & Washington
CBOT September Corn $6.06/bushel 0.16
Barley
(October 31 Sales Closing Date, Spring Types)
Nevada & Utah 		CBOT September Corn $3.31/bushel 0.16
Barley – Organic Practice
(October 31 Sales Closing Date, Spring Types)
Nevada & Utah 		CBOT September Corn $6.06/bushel 0.16
Canola
All States		 ICE November Canola $0.158/pound 0.11
Canola - Rapeseed Type
All State
 ICE November Canola $0.203/pound 0.00
Canola
(August 31 Sales Closing Date, Spring Type(s))
Idaho, Oregon & Washington 		ICE November Canola $0.158/pound 0.11
Canola - Rapeseed Type
(August 31 Sales Closing Date, Spring Type(s))
Idaho, Oregon & Washington 		ICE November Canola $0.203/pound 0.00
Corn
Oklahoma & Texas 		CBOT December Corn 3.86/bushel 0.16
Corn - Organic Practice
Oklahoma & Texas 		CBOT December Corn 8.42/bushel 0.16
Corn
Colorado, Connecticut, Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia, Wisconsin & Wyoming 		CBOT December Corn $3.86/bushel 0.17
Corn - Organic Practice
Colorado, Connecticut, Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia, Wisconsin & Wyoming 		CBOT December Corn $8.42/bushel 0.17
Corn – High Amylose Type
Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska & South Dakota 		CBOT December Corn $5.40/bushel 0.17
Corn
Idaho, Michigan, Oregon & Washington
 CBOT December Corn $8.42/bushel 0.19
Corn - Organic Practice
Idaho, Michigan, Oregon & Washington		 CBOT December Corn $8.42/bushel 0.19
Cotton
Missouri, Tennessee, Texas & Virginia
ICE December Cotton $0.60/pound 0.14
Cotton - Organic Practice
Missouri, Tennessee, Texas & Virginia
ICE December Cotton $1.20/pound 0.14
Cotton
Kansas, New Mexico & Oklahoma
ICE December Cotton $0.60/pound 0.15
Cotton - Organic Practice
Kansas, New Mexico & Oklahoma
ICE December Cotton $1.20/pound 0.15
Grain Sorghum
Texas
 CBOT December Corn $3.72/bushel 0.16
Grain Sorghum – Organic Practice
Texas		 CBOT December Corn $5.69/bushel 0.16
Grain Sorghum
All States, except Texas
 CBOT December Corn $3.72/bushel 0.17
Grain Sorghum – Organic Practice
All States, except Texas
CBOT December Corn $5.69/bushel 0.17
Peanuts - Runner Type
New Mexico, Oklahoma, Texas & Virginia
CBOT/ICE December Wheat, Cotton, Soybean Oil & Soybean Meal
 $0.2045/pound 0.10
Peanuts - Spanish Type
New Mexico, Oklahoma & Texas		 CBOT/ICE December Wheat, Cotton, Soybean Oil & Soybean Meal $0.2863/pound 0.10
Peanuts - Valencia Type
New Mexico, Oklahoma & Texas 		CBOT/ICE December Wheat, Cotton, Soybean Oil & Soybean Meal $0.2454/pound 0.10
Peanuts - Virginia Type
New Mexico, Oklahoma, Texas & Virginia
 CBOT/ICE December Wheat, Cotton, Soybean Oil & Soybean Meal $0.2454/pound 0.10
Popcorn
Alabama (previously released: 2/16/2016)
 CBOT September Corn $0.1676/pound 0.17
Popcorn - Organic Practice
Alabama (previously released: 2/16/2016)
 CBOT September Corn $0.2416/pound 0.17
Popcorn
All States, except Alabama & Michigan		 CBOT December Corn $0.1698/pound 0.17
Popcorn - Organic Practice
All States, except Alabama & Michigan
 CBOT December Corn $0.2447/pound 0.17
Popcorn
Michigan		 CBOT December Corn $0.1698/pound 0.19
Popcorn - Organic Practice
Michigan 		CBOT December Corn $0.2447/pound 0.19
Soybeans
Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New York, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Vermont, Washington & Wisconsin 		CBOT November Soybeans $8.85/bushel 0.12
Soybeans - Organic Practice
Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New York, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Vermont, Washington & Wisconsin		 CBOT November Soybeans 16.85/bushel 0.12
Soybeans
Delaware, Maryland, Oklahoma, Virginia & West Virginia 		CBOT January (2017) Soybeans $8.90/bushel 0.13
Soybeans - Organic Practice
Delaware, Maryland, Oklahoma, Virginia & West Virginia
CBOT January (2017) Soybeans $16.95/bushel 0.13
Sunflowers - Oil Type
All States
CBOT December Soybean Oil $0.169/pound 0.14
Sunflowers - Oil Type; Organic Practice
All States
CBOT December Soybean Oil $0.230/pound 0.14
Sunflowers - Confectionary Type
All States 		CBOT December Soybean Oil $0.267/pound 0.14
Wheat - All Types Except Durum
Alaska, California, Colorado, Iowa, Maine, Minnesota, Montana, Nebraska, North Dakota, Oregon [Klamath County only], South Dakota, Vermont, Wisconsin & Wyoming 		MGE September HRS Wheat $5.13/bushel 0.15
Wheat - All Types Except Durum; Organic Practice
Alaska, California, Colorado, Iowa, Maine, Minnesota, Montana, Nebraska, North Dakota, Oregon [Klamath County only], South Dakota, Vermont, Wisconsin & Wyoming 		MGE September HRS Wheat $9.47/bushel 0.15
Wheat - Durum Type
Montana, North Dakota & South Dakota		 MGE September HRS Wheat $5.72/bushel 0.15
Wheat - Durum Type; Organic Practice
Montana, North Dakota & South Dakota
MGE September HRS Wheat
$5.13/bushel 0.15
Wheat
(September 30 Sales Closing Date, Spring Type)
California, Colorado, Iowa, Montana (including Khorasan), Nebraska, Oregon (Klamath County only), South Dakota, Wisconsin & Wyoming 		MGE September HRS Wheat $9.47/bushel 0.15
Wheat – Organic Practice
(September 30 Sales Closing Date, Spring Type)
California, Colorado, Iowa, Montana (including Khorasan), Nebraska, Oregon (Klamath County only), South Dakota, Wisconsin & Wyoming		 MGE September HRS Wheat $9.47/bushel 0.15
1 Projected Prices and Volatility Factors are applicable for the Supplemental Coverage Option (SCO) and Stacked Income Protection (STAX – cotton only).
Malting Barley Endorsement

The Malting Barley Endorsement (MBE) utilizes a Chicago Board of Trade (CBOT) soft red wheat price component to derive the projected price for any insured whose malt barley contract provides for a premium amount above or below a base price to be determined, and the base price is not determined by the acreage reporting date.  Please see the MBE for details: Policies Document

 

Malting Barley Type Exchange Contract Projected Price Volatility Factor 
Spring Planted Type CBOT September SRW Wheat $4.81/bushel 0.17
Hybrid Seed Price Endorsement

The following 2016 CY hybrid seed corn prices have been approved for the Hybrid Seed Price Endorsement:  $3.87 per bushel for the non-organic practice; and $8.42 per bushel for the certified organic practice.

These amounts reflect the higher values of either: 1) the previously-released 2016 crop year MPCI hybrid seed corn price elections [non-organic practice:  $3.87 per bushel; certified organic practice:  $8.35 per bushel]; or 2) the futures-based price derived from the average daily settlement price in February for the 2016 December CBOT corn contract [non-organic practice:  $3.86 per bushel], multiplied by an organic corn price factor [certified organic practice:  $8.42 per bushel].


DISPOSAL DATE
December 31, 2016

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