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Product Management Bulletin-PM-22-007

Date
To
All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties
From
Richard H. Flournoy, Deputy Administrator
Subject
2022 Crop Year (CY) Common Crop Insurance Policy and Margin Protection Projected Prices and Volatility Factors

Common Crop Insurance Policy 1

The 2022 CY projected prices shown below are approved for the Yield Protection, Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance. The 2022 CY volatility factors shown below are approved for the Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance. The projected prices and volatility factors apply to policies with a January 31 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 September Corn $5.68/bu. 0.20
Corn – Organic Practice2 Texas CBOT September Corn $11.28/bu. 0.20
Cotton Texas ICE December Cotton $0.93/lb. 0.22
Cotton – Organic Practice2 Texas ICE December Cotton $1.33/lb. 0.22
Grain Sorghum Texas CBOT September Corn $5.66/bu. 0.20
Grain Sorghum – Organic Practice2 Texas CBOT September Corn $11.83/bu. 0.20
Peanuts – Runner Type Texas CBOT/ ICE December Wheat, Cotton, Soybean Oil & Soybean Meal $0.2408/lb. 0.20
Peanuts – Spanish Type Texas CBOT/ ICE December Wheat, Cotton, Soybean Oil & Soybean Meal $0.4094/lb. 0.20
Rice – Long Grain Type Texas CBOT September Rice $0.142/lb. 0.09
Rice – Medium & Short Grain Types Texas CBOT September Rice $0.186/lb. 0.09
Rice – Long Grain Type; Organic Practice Texas CBOT September Rice $0.190/lb. 0.09
Rice – Medium & Short Grain Types; Organic Practice Texas CBOT September Rice $0.249/lb. 0.09
Soybeans Texas CBOT November Soybeans $12.80/bu. 0.17
Soybeans – Organic Practice Texas CBOT November Soybeans Not available.3
Sunflowers – Oil Type Texas CBOT July Soybean Oil $0.293/lb. 0.19
Sunflowers – Oil Type; Organic Practice Texas CBOT July Soybean Oil $0.533/lb. 0.19
Sunflowers – Confectionery Type Texas CBOT July Soybean Oil $0.366/lb. 0.19
Sunflowers – Confectionery Type; Organic Practice Texas CBOT July Soybean Oil $0.533/lb. 0.19
1 Projected Prices and Volatility Factors are applicable for the Enhanced Coverage Option (ECO) and the Supplemental Coverage Option (SCO), where available.
2 For the 2022 CY, organic coverage is not available in all counties covered by the January 31 sales closing date.
3 For the 2022 CY, organic coverage is not available for soybeans in counties covered by the January 31 sales closing date.

Margin Protection

The following 2022 CY margin projected prices and volatility factors are approved for the Margin Protection plan of insurance. 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: webapp.rma.usda.gov/apps/actuarialinformationbrowser/

Please see the following web page on RMA’s public website for program details: www.rma.usda.gov/en/Policy-and-Procedure/Insurance-Plans/Margin-Protection-for-Corn-Rice-Soybeans-and-Wheat

Crop/Type Exchange Contract Margin Projected Price Volatility Factor
Rice – Long Grain Type & No Type Specified Texas CBOT September Rice $0.142/lb. 0.09
Rice – Medium & Short Grain Types Texas CBOT September Rice $0.186/lb. 0.09

DISPOSAL DATE December 31, 2022