1.  

INFORMATIONAL MEMORANDUM: PM–18-007

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 01, 2018

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    2/1/2018

Subject:

2018 Crop Year (CY) Common Crop Insurance Policy and Area Risk Protection Insurance Projected Prices and Volatility Factors
Common Crop Insurance Policy & Area Risk Protection Insurance

The 2018 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 2018 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 February 15 sales closing date and are applicable for the crops, types, practices and states indicated below:
Crop/Type/Practice/State
Exchange
Contract  Projected
Price 		  Volatility
Factor
 Corn
Texas		  CBOT  December
Corn		  $3.86/bu.  0.14
 Corn - Organic Practice
Texas		  CBOT  December
Corn		  $8.84/bu  0.14
 Grain Sorghum
Texas		  CBOT  December
Corn		  $3.73/bu.  0.14
 Grain Sorghum -
Organic Practice
Texas		  CBOT  December
Corn		  $8.05/bu  0.14
 Rice – Long Grain Type
Florida		  CBOT  September
Rice		  $0.117/lb.  0.13
 Rice – Long Grain Type;
Organic Practice
Florida		  CBOT  September
Rice		  $0.157/lb.  0.13
 Rice – Medium & Short Grain Types
Florida		  CBOT  September
Rice		  $0.129/lb.  0.13
 Rice – Medium & Short Grain Types; Organic Practice
Florida		  CBOT  September
Rice		  $0.172/lb  0.13
                                                                                         

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

2 In accordance with the Commodity Exchange Price Provisions (CEPP), the CBOT September rice contract is used to derive the projected rice prices since the November contract lacks sufficient volume and open interest activity. See the relevant CEPP document for details.

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