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PRODUCT MANAGEMENT BULLETIN: PM–17-008

United States Department of Agriculture


Farm and Foreign Agricultural Services


Risk Management Agency


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

Date

February 16, 2017

To:

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

From:

Richard H. Flournoy, Deputy Administrator /s/ Richard H. Flournoy    2/16/2017

Subject:

2017 Crop Year (CY) Common Crop Insurance Policy, Area Risk Protection Insurance and Margin Protection Plan Projected Prices and Volatility Factors

 

Common Crop Insurance Policy & Area Risk Protection Insurance 1, 2

 

The 2017 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 with the Harvest Price Exclusion. The 2017 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 with the Harvest Price Exclusion. The projected prices and volatility factors apply to policies with a February 28 sales closing date, unless otherwise indicated, and are applicable for the crops, types, practices and states indicated below:

 

Crop/Type/Practice/State Exchange Contract Projected Price Volatility Factor
Corn
Alabama, Florida, Georgia, Louisiana & South Carolina 		CBOT September
Corn		 $3.87/bushel 0.17
Corn - Organic Practice
Alabama, Florida, Georgia, Louisiana & South Carolina		 CBOT September
Corn		 $8.86/bushel 0.17
Corn
Arkansas & Mississippi 		CBOT December
Corn		 $3.94/bushel 0.17
Corn - Organic Practice
Arkansas & Mississippi 		CBOT December
Corn		 $9.02/bushel 0.17
Corn
North Carolina 		CBOT December
Corn		 $3.94/bushel 0.17
Corn - Organic Practice
North Carolina 		CBOT December
Corn		 $9.02/bushel 0.17
Corn
Arizona, California & Nevada 		CBOT December
Corn		 $3.94/bushel 0.18
Corn - Organic Practice
Arizona, California & Nevada 		CBOT
 December
Corn		 $9.02/bushel 0.18
Cotton
All States 		ICE December
Cotton		 $0.73/pound 0.15
Cotton – Organic Practice
All States 		ICE December
Cotton		 $1.13/pound 0.15
Grain Sorghum
Alabama, Florida, Georgia & South Carolina 		CBOT December
Corn		 $3.81/bushel 0.16
Grain Sorghum – Organic Practice
Alabama, Florida, Georgia & South Carolina 		CBOT December
Corn 		$5.61/bushel 0.16
Grain Sorghum
Arkansas, Louisiana & Mississippi 		CBOT December
Corn 		$3.81/bushel 0.17
Grain Sorghum – Organic Practice
Arkansas, Louisiana & Mississippi 		CBOT December
Corn 		$5.61/bushel 0.17
Grain Sorghum
Arizona, California & North Carolina 		CBOT December
Corn 		$3.81/bushel 0.18
Grain Sorghum – Organic Practice
Arizona, California & North Carolina 		CBOT December
Corn 		$5.61/bushel 0.18
Peanuts – Runner Type
Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina & Texas 		CBOT/ ICE December
Wheat, Cotton, Soybean Oil & Soybean Meal		 $0.1977/pound 0.12
Peanuts – Spanish Type
Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi & Texas 		CBOT/ ICE December
Wheat, Cotton, Soybean Oil & Soybean Meal		 $0.2590/pound 0.12
Peanuts – Virginia Type
Alabama, Florida, Georgia, Mississippi, North Carolina & South Carolina 		CBOT/ ICE December
Wheat, Cotton, Soybean Oil & Soybean Meal		 $0.2194/pound 0.12
Popcorn
March 15 Sales Closing Date
Alabama 		CBOT September
Corn		 $0.1664/pound 0.17
Popcorn – Organic Practice
March 15 Sales Closing Date
Alabama 		CBOT September
Corn		 $0.2396/pound 0.17
Rice – Long Grain Type & No Type Specified2
Louisiana 		CBOT September
Rice		 $0.103/pound 0.17
Rice – Long Grain Type & No Type Specified; Organic Practice
Louisiana 		CBOT September
Rice		 $0.138/pound 0.17
Rice – Medium/Short Grain Types
Louisiana
 CBOT September
Rice		 $0.109/pound 0.17
Rice – Medium/Short Grain Types; Organic Practice
Louisiana 		CBOT September
Rice		 $0.146/pound 0.17
Rice – Long Grain Type & No Type Specified2
Arkansas, Mississippi & Texas 		CBOT November
Rice		 $0.104/pound 0.17
Rice – Long Grain Type & No Type Specified; Organic Practice
Arkansas, Mississippi & Texas 		CBOT November
Rice		 $0.139/pound 0.17
Rice – Medium/Short Grain Types
Arkansas, Mississippi & Texas 		CBOT November
Rice		 $0.110/pound 0.17
Rice – Medium/Short Grain Types; Organic Practice
Arkansas, Mississippi & Texas 		CBOT November
Rice 		$0.148/pound 0.17
Rice – Long Grain Type & No Type Specified
California, Illinois, Missouri, Oklahoma & Tennessee 		CBOT November
Rice 		$0.104/pound 0.18
Rice – Long Grain Type & No Type Specified; Organic Practice
California, Illinois, Missouri, Oklahoma & Tennessee 		CBOT November
Rice 		$0.139/pound 0.18
Rice – Medium/Short Grain Types
California 		CBOT November
Rice 		$0.146/pound 0.18
Rice – Medium/Short Grain Types; Organic Practice
California 		CBOT November
Rice 		$0.196/pound 0.18
Rice – Medium/Short Grain Types
Illinois, Missouri, Oklahoma & Tennessee 		CBOT November
Rice 		$0.110/pound 0.18
Rice – Medium/Short Grain Types; Organic Practice
Illinois, Missouri, Oklahoma & Tennessee 		CBOT November
Rice 		$0.148/pound 0.18
Soybeans
Arkansas, Louisiana, Mississippi & Texas 		CBOT November
Soybeans		 $10.21/bushel 0.15
Soybeans - Organic Practice
Arkansas, Louisiana, Mississippi & Texas 		CBOT November
Soybeans		 $20.56/bushel 0.15
Soybeans
Alabama, Florida, Georgia, North Carolina & South Carolina 		CBOT January
(2018)
Soybeans		 $10.25/bushel 0.16
Soybeans - Organic Practice
Alabama, Florida, Georgia, North Carolina & South Carolina 		CBOT January
(2018)
Soybeans		 $20.64/bushel 0.16

1 Projected Prices and Volatility Factors are applicable for the Supplemental Coverage Option (SCO).

2 The long grain projected price (conventional practice) is used as the price election under the terms of the Hybrid Seed Rice Crop Provisions: http://www.rma.usda.gov/policies/2016/16-0080.pdf
         
Margin Protection Plan

 

The following 2017 CY margin projected prices and volatility factors are approved for the Margin Protection Plan. The margin projected price is used in conjunction with projected input prices and the expected county yield to derive the expected margin (per acre), trigger margin (per acre) and liability. The expected margins for each crop/county are available at the following web page on RMA’s public website: http://webapp.rma.usda.gov/apps/actuarialinformationbrowser/. Please see the following web page on RMA’s public website for program details: http://www.rma.usda.gov/policies/mp/index.html

 

Crop/Type Exchange Contract Margin Projected Price Volatility Factor
Rice – Long Grain Type & No Type Specified
Louisiana 		CBOT September
Rice		 $0.103/pound 0.17
Rice – Medium & Short Grain Types
Louisiana 		CBOT September
Rice		 $0.109/pound 0.17
Rice – Long Grain Type & No Type Specified
Arkansas, Mississippi & Texas 		CBOT November
Rice		 $0.104/pound 0.17
Rice – Medium & Short Grain Types
Arkansas, Mississippi & Texas 		CBOT November
Rice		 $0.110/pound 0.17
Rice – Long Grain Type & No Type Specified
California & Missouri 		CBOT November
Rice		 $0.104/pound 0.18
Rice – Medium & Short Grain Types
California
 CBOT November
Rice		 $0.146/pound 0.18
Rice – Medium & Short Grain Types
Missouri		 CBOT November
Rice		 $0.110/pound 0.18
         

DISPOSAL DATE
December 31, 2017
USDA is an Equal Opportunity Employer and Provider

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