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Product Management Bulletin-PM-18-008

Date
To
All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties
From
Richard H. Flournoy, Deputy Administrator /s/ Richard Flournoy
Subject
2018 Crop Year (CY) Common Crop Insurance Policy, Area Risk Protection Insurance and Margin Protection Plan Projected Prices and Volatility Factors

Common Crop Insurance Policy & Area Risk Protection Insurance 1,2,3

The 2018 CY projected prices shown below are approved for the following plans of insurance: Yield Protection, Area Yield Protection, Revenue Protection, Area Revenue Protection, Revenue Protection with Harvest Price Exclusion, and Area Revenue Protection with the Harvest Price Exclusion. The 2018 CY volatility factors shown below are approved for the following plans of insurance: Revenue Protection, Area Revenue Protection, Revenue Protection with Harvest Price Exclusion, and Area Revenue Protection with the Harvest Price Exclusion. The projected prices and volatility factors apply to policies with a February 28 sales closing date, unless otherwise indicated, and are applicable for the crops, types, practices and states indicated below:

Crop/Type/Practice/StateExchangeContractProjected
Price
Volatility
Factor
Corn
Alabama, Florida, Georgia, Louisiana & South Carolina
CBOTSeptember
Corn
$3.82/bushel0.14
Corn - Organic Practice
Alabama, Florida, Georgia, Louisiana & South Carolina
CBOTSeptember
Corn
$8.75/bushel0.14
Corn
Arkansas & Mississippi
CBOTDecember
Corn
$3.91/bushel0.14
Corn - Organic Practice
Arkansas & Mississippi
CBOTDecember
Corn
$8.95/bushel0.14
Corn
North Carolina
CBOTDecember
Corn
$3.91/bushel0.14
Corn - Organic Practice
North Carolina
CBOTDecember
Corn
$8.95/bushel0.14
Corn
Arizona, California & Nevada
CBOTDecember
Corn
$3.91/bushel0.15
Corn - Organic Practice
Arizona, California & Nevada
CBOTDecember
Corn
$8.95/bushel0.15
Cotton
All States
ICEDecember
Cotton
$0.75/pound0.14
Cotton – Organic Practice
All States
ICEDecember
Cotton
$1.15/pound0.14
Grain Sorghum
Alabama, Florida, Georgia & South Carolina
CBOTDecember
Corn
$3.78/bushel0.13
Grain Sorghum – Organic Practice
Alabama, Florida, Georgia & South Carolina
CBOTDecember
Corn
$8.15/bushel0.13
Grain Sorghum
Arkansas, Louisiana & Mississippi
CBOTDecember
Corn
$3.78/bushel0.14
Grain Sorghum – Organic Practice
Arkansas, Louisiana & Mississippi
CBOTDecember
Corn
$8.15/bushel0.14
Grain Sorghum
Arizona, California & North Carolina
CBOTDecember
Corn
$3.78/bushel0.15
Grain Sorghum – Organic Practice
Arizona, California & North Carolina
CBOTDecember
Corn
$8.15/bushel0.15
Peanuts – Runner Type
Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina & Texas
CBOT/ ICEDecember
Wheat, Cotton, Soybean Oil & Soybean Meal
$0.1961/pound0.12
Peanuts – Spanish Type
Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi & Texas
CBOT/ ICEDecember
Wheat, Cotton, Soybean Oil & Soybean Meal
$0.2569/pound0.12
Peanuts – Virginia Type
Alabama, Florida, Georgia, Mississippi, North Carolina & South Carolina
CBOT/ ICEDecember
Wheat, Cotton, Soybean Oil & Soybean Meal
$0.2216/pound0.12
Popcorn
March 15 Sales Closing Date
Alabama
CBOTSeptember
Corn
$0.1643/pound0.14
Popcorn – Organic Practice
March 15 Sales Closing Date
Alabama
CBOTSeptember
Corn
$0.2365/pound0.14
Rice – Long Grain Type3
Louisiana
CBOTSeptember
Rice
$0.119/pound0.11
Rice – Long Grain Type; Organic Practice
Louisiana
CBOTSeptember
Rice
$0.159/pound0.11
Rice – Medium/Short Grain Types
Louisiana
CBOTSeptember
Rice
$0.131/pound0.11
Rice – Medium/Short Grain Types; Organic Practice
Louisiana
CBOTSeptember
Rice
$0.175/pound0.11
Rice – Long Grain Type3
Arkansas, Mississippi & Texas
CBOTSeptember2
Rice
$0.119/pound0.12
Rice – Long Grain Type; Organic Practice
Arkansas, Mississippi & Texas
CBOTSeptember2
Rice
$0.159/pound0.12
Rice – Medium/Short Grain Types
Arkansas, Mississippi & Texas
CBOTSeptember2
Rice
$0.131/pound0.12
Rice – Medium/Short Grain Types; Organic Practice
Arkansas, Mississippi & Texas
CBOTSeptember2
Rice
$0.175/pound0.12
Rice – Long Grain Type
California, Illinois, Missouri, Oklahoma & Tennessee
CBOTSeptember2
Rice
$0.119/pound0.13
Rice – Long Grain Type; Organic Practice
California, Illinois, Missouri, Oklahoma & Tennessee
CBOTSeptember2
Rice
$0.159/pound0.13

1 Projected Prices and Volatility Factors are applicable for the Supplemental Coverage Option (SCO) and Stacked Income Protection (STAX - cotton only).
2 In accordance with the Commodity Exchange Price Provisions (CEPP), the CBOT September rice contract is used to derive the projected rice prices since the November contract lacks sufficient volume and open interest activity. See the relevant CEPP document for details: www.rma.usda.gov/policies/2016/16cepp.pdf
3 The long grain projected price (conventional practice) is used as the price election under the terms of the Hybrid Seed Rice Crop Provisions: www.rma.usda.gov/policies/2016/16-0080.pdf

Common Crop Insurance Policy & Area Risk Protection Insurance 1,2

Crop/Type/Practice/StateExchangeContractProjected
Price
Volatility
Factor
Rice – Medium/Short Grain Types
California
CBOTSeptember2
Rice
$0.173/pound0.13
Rice – Medium/Short Grain Types; Organic Practice
California
CBOTSeptember2
Rice
$0.231/pound0.13
Rice – Medium/Short Grain Types
Illinois, Missouri, Oklahoma & Tennessee
CBOTSeptember2
Rice
$0.131/pound0.13
Rice – Medium/Short Grain Types; Organic Practice
Illinois, Missouri, Oklahoma & Tennessee
CBOTSeptember2
Rice
$0.175/pound0.13
Soybeans
Arkansas, Louisiana, Mississippi & Texas
CBOTNovember
Soybeans
$10.04/bushel0.13
Soybeans - Organic Practice
Arkansas, Louisiana, Mississippi & Texas
CBOTNovember
Soybeans
$20.25/bushel0.13
Soybeans
Alabama, Florida, Georgia, North Carolina & South Carolina
CBOTJanuary (2019)
Soybeans
$10.09/bushel0.13
Soybeans - Organic Practice
Alabama, Florida, Georgia, North Carolina & South Carolina
CBOTJanuary (2019)
Soybeans
$20.35/bushel0.13

1 Projected Prices and Volatility Factors are applicable the Supplemental Coverage Option (SCO).
2 In accordance with the Commodity Exchange Price Provisions (CEPP), the CBOT September rice contract is used to derive the projected rice prices since the November contract lacks sufficient volume and open interest activity. See the relevant CEPP document for details: www.rma.usda.gov/policies/2016/16cepp.pdf

Margin Protection Plan

The following 2018 CY margin projected prices and volatility factors are approved for the Margin Protection Plan. 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 on RMA’s Actuarial Information Browser. Please see the Margin Protection policies page on RMA’s public website for more information.

Crop/TypeExchangeContractMargin
Projected Price
Volatility
Factor
Rice – Long Grain Type & No Type Specified
Louisiana
CBOTSeptember
Rice
$0.119/pound0.11
Rice – Medium & Short Grain Types
Louisiana
CBOTSeptember
Rice
$0.131/pound0.11
Rice – Long Grain Type & No Type Specified
Arkansas, Mississippi & Texas
CBOTSeptember1
Rice
$0.119/pound0.12
Rice – Medium & Short Grain Types
Arkansas, Mississippi & Texas
CBOTSeptember1
Rice
$0.131/pound0.12
Rice – Long Grain Type & No Type Specified
California & Missouri
CBOTSeptember1
Rice
$0.119/pound0.13
Rice – Medium & Short Grain Types
California
CBOTSeptember1
Rice
$0.173/pound0.13
Rice – Medium & Short Grain Types
Missouri
CBOTSeptember1
Rice
$0.131/pound0.13

1 In accordance with the Margin Price Provisions (MPP), the CBOT September rice contract is used to derive the projected rice prices since the November contract lacks sufficient volume and open interest activity. See the relevant MPP document for details: www.rma.usda.gov/policies/2018/18mpp_sectionI.pdf

DISPOSAL DATE
December 31, 2018