PRODUCT MANAGEMENT BULLETIN: PM–18-002
United States Department of Agriculture
Farm and Foreign Agricultural Services
Risk Management Agency
1400 Independence Avenue, SW
Stop 0801
Washington, DC 20250-0801
Date
To:
All Risk Management Agency Field Offices
All Other Interested Parties
From:
Subject:
- Background
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The CEPP peanut factors necessary to establish the insured’s amount of protection under the peanut program for the 2018 CY are identified below. The factors are applied to the commodity prices for wheat, cotton, soybean oil, and soybean meal during the discovery period of January 15, 2018 to February 14, 2018. These factors apply only to states with a Sales Closing Date (SCD) of February 28, 2018. They are determined in accordance with the Peanut Price Methodology guidelines.
- Action
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The factor values for the pricing of Yield Protection (01), Revenue Protection (02), and Revenue Protection with Harvest Price Exclusion (03) for peanuts in states and counties with a February 28, 2018 SCD as specified in the CEPP for the 2018 crop year are shown below.
The values for the exponent factors for each commodity exchange futures contract are:
Commodity Abbreviation Value Wheat Ewh -0.2345 Cotton Ect 0.3156 Soybean Oil Eso 0.8031 Soybean Meal Esm -0.3768 The values for the price constant an price weighting factors are:
Variable Abbreviation Value Price Constant C 0.1676 Price Weighting Factor W 0.9927 The values for the type factors are:
Type
Abbreviation Value Runner Tru 1.00 Spanish Tsp
1.31 Valencia Tva 1.13 Virginia Tvi 1.13 Additionally , the Factor specifications for commodities utilized to determine price volatility are as follows:
Commodity Abbreviation Value Wheat Gwh -0.2345 Cotton Gct 1.1547 Soybean Oil
Gso 0.4442 Soybean Meal
Gsm -0.0701 The value for the volatility weighting factor is:
Variable Abbreviation Value Volatility Weighting Factor
V 0.4401