All Risk Management Agency Field Offices
All Other Interested Parties
Background
The CEPP peanut factors necessary to establish the insured’s amount of protection under the peanut program for the 2017 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 February 1, 2017 to February 28, 2017. These factors apply only to states with a Sales Closing Date (SCD) of March 15, 2017. They are determined in accordance with the Peanut Price Methodology guidelines published.
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 March 15, 2017 SCD as specified in the CEPP for the 2017 crop year are shown below.
The values for the exponent factors for each commodity exchange futures contract are:
| Commodity | Abbreviation | Value |
|---|---|---|
| Wheat | 𝐸𝑤ℎ | -0.2256 |
| Cotton | 𝐸𝑐t | 0.3121 |
| Soybean Oil | 𝐸𝑠o | 0.8084 |
| Soybean Meal | 𝐸𝑠m | -0.3756 |
The values for the price constant and price weighting factors are:
| Variable | Abbreviation | Value |
|---|---|---|
| Price Constant | 𝐶 | 0.1682 |
| Price Weighting Factor | 𝑊 | 0.9633 |
The values for the type factors are:
| Type | Abbreviation | Value |
|---|---|---|
| Runner | 𝑇𝑟u | 1.00 |
| Spanish | 𝑇𝑠p | 1.31 |
| Valencia | 𝑇𝑣a | 1.11 |
| Virginia | 𝑇𝑣i | 1.11 |
Additionally, the factor specifications for commodities utilized to determine price volatility are as follows:
| Commodity | Abbreviation | Value |
|---|---|---|
| Wheat | 𝐺𝑤ℎ | -0.2414 |
| Cotton | 𝐺𝑐t | 0.7061 |
| Soybean Oil | 𝐺𝑠o | 0.3771 |
| Soybean Meal | 𝐺𝑠m | 0.2812 |
The value for the volatility weighting factor is:
| Variable | Abbreviation | Value |
|---|---|---|
| Volatility Weighting Factor | 𝑉 | 0.5819 |
DISPOSAL DATE
December 31, 2017