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
2016 Margin Protection Plan Projected Prices and Volatility Factors
Margin Protection Plan
The following 2016 CY margin projected prices and volatility factors are approved for Margin Protection Plan for rice offers with a February 28 sales closing date. 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: aibpf-rma.fpac.usda.gov/apps/ActuarialInformationBrowser/
Please see the following web page on RMA’s public website for program details: www.rma.usda.gov/policy-procedure/general-policies/margin-protection
| Crop/Type | Exchange | Contract | Margin Projected Price | Volatility Factor |
|---|---|---|---|---|
| Rice - Medium & Short Grain Types Arkansas, Mississippi, Texas | CBOT | September* Rice | $0.117/pound | .15 |
| Rice - Medium & Short Grain Types Arkansas, Mississippi, Texas | CBOT | September* Rice | $0.133/pound | .15 |
| Rice - Long Grain Type & No Type Specified Missouri | CBOT | September* Rice | $0.117/pound | .16 |
| Rice - Medium & Short Grain Types Missouri | CBOT | September* Rice | $0.133/pound | .16 |
| Rice - Long Grain Type & No Type Specified California | CBOT | September* Rice | $0.117/pound | .16 |
| Rice - Medium & Short Grain Types California | CBOT | September* Rice | $0.165/pound | .16 |
| Rice - Long Grain Type & No Type Specified Louisiana | CBOT | September* Rice | $0.117/pound | .13 |
| Rice - Medium & Short Grain Types Louisiana | CBOT | September* Rice | $0.133/pound | .13 |
| *For Margin Projected Prices, the September contract was used in lieu of the November contract due to low open interest. | ||||
DISPOSAL DATE
December 31, 2016