Date
To
All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties
All Risk Management Agency Field Offices
All Other Interested Parties
From
Tim B. Witt, Deputy Administrator /s/ Tim B. Witt
Subject
2015 Crop Year (CY) Common Crop Insurance Policy Projected Prices and Volatility Factors
The 2015 CY projected prices shown below are approved for the Yield Protection, Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance. The 2015 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 | $4.22/bu. | 0.20 |
| Corn - Organic Practice Texas | CBOT | September Corn | $7.94/bu. | 0.20 |
| Cotton Texas | ICE | December* Cotton | $0.65/lb. | 0.16 |
| Cotton - Organic Practice Texas | ICE | December* Cotton | $1.20/lb | 0.16 |
| Grain Sorghum Texas | CBOT | September Corn | $4.06/bu. | 0.20 |
| Grain Sorghum - Organic Practice Texas | CBOT | September Corn | $6.22/bu. | 0.20 |
| Peanuts - Runner Type Texas | CBOT/ICE | December Wheat, Cotton, Soybean Oil & Soybean Meal | $0.28/lb. | 0.08 |
| Peanuts - Spanish Type Texas | CBOT/ICE | December Wheat, Cotton, Soybean Oil & Soybean Meal | $0.22/lb. | 0.08 |
| Rice - Long Grain Type Texas | CBOT | September Rice | $0.119/lb.** | 0.00 |
| Rice - Medium & Short Grain Type Texas | CBOT | September Rice | $0.145/lb.** | 0.00 |
| Soybeans Texas | CBOT | November Soybeans | $10.13/bu. | 0.17 |
| Soybeans - Organic Practice Texas | CBOT | November Soybeans | $17.67/bu. | 0.17 |
| Sunflowers - Oil Type Texas | CBOT | July Soybean Oil | $0.175/lb. | 0.13 |
| Sunflowers - Confectionary Type Texas | CBOT | July Soybean Oil | $0.271/lb. | 0.13 |
1Projected Prices and Volatility Factors are applicable for Stacked Income Protection (STAX) and the Supplemental Coverage Option (SCO).
* Beginning in the 2015 CY, the ICE December cotton contract will be used to determine projected and harvest prices for Texas counties covered by the January 31 sales closing date (see http://www.rma.usda.gov/bulletins/pm/2014/14-050.pdf).
** Revenue protection coverage will not be offered for rice counties with a January 31, 2015 sales closing date in Texas due to insufficient full active trading days as stipulated in the Commodity Exchange Price Provisions (CEPP) – Section 1 (http://www.rma.usda.gov/policies/2014/14cepp.pdf). Yield protection will still be available and revenue coverage plans of insurance will have the harvest price equal the projected price with zero volatility. The projected price equals the average daily settlement price for the CBOT 2015 September rice contract for the period December 15, 2014 through January 14, 2015.
DISPOSAL DATE:
December 31, 2015