All Risk Management Agency Field Offices
All Other Interested Parties
Background
The Federal Crop Insurance Corporation Board of Directors approved the CEPP for revenue peanuts beginning with the 2015 CY. The factors necessary to establish the insured’s amount of protection under the peanut program for the 2015 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, 2014 to February 14, 2015. These factors apply only to States with a Sales Closing Date (SCD) of February 28, 2015. They are determined in accordance with the Peanut Price Methodology guidelines published in November 2014 and available at: www.rma.usda.gov/policy-procedure/crop-policies/commodity-exchange-price-provisions-peanuts-15-cepp-pt.
Action
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, 2015 SCD as specified in the CEPP for the 2015 crop year are shown below.
The values for the exponent factors for each exchange commodity futures contract are:
| Commodity | Abbreviation | Value |
|---|---|---|
| Wheat | Ewh | -0.2887 |
| Cotton | Ect | 0.3085 |
| Soybean Oil | Eso | 0.9596 |
| Soybean Meal | Esm | -0.4268 |
The values for the price constant and price weighting factors are:
| Variable | Abbreviation | Value |
|---|---|---|
| Price Constant | C | 0.1514 |
| Price Weighting Formula | W | 4.0388 |
The values for the type factors are:
| Type | Abbreviation | Value |
|---|---|---|
| Runner | Tru | 1.00 |
| Spanish | Tsp | 1.33 |
| Valencia | Tva | 1.16 |
| Virginia | Tvi | 1.16 |
Additionally, the factor specifications for commodities utilized to determine price volatility are as follows:
| Commodity | Abbreviation | Value |
|---|---|---|
| Wheat | Gwh | -0.0639 |
| Cotton | Gct | 0.5809 |
| Soybean Oil | Gso | 0.0712 |
| Soybean Meal | Gsm | -0.2265 |
The value for the volatility weighting factor is:
| Variable | Abbreviation | Value |
|---|---|---|
| Volatility Weighting Factor | V | 3.0345 |
DISPOSAL DATE:
December 31, 2015