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
Richard H. Flournoy, Deputy Administrator
Subject
2021 Crop Year (CY) Common Crop Insurance Policy and Margin Protection Projected Prices and Volatility Factors
Common Crop Insurance Policy 1 The 2021 CY projected prices shown below are approved for the Yield Protection, Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance. The 2021 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 | $4.43/bu. | 0.23 |
| Corn – Organic Practice2 Texas | CBOT | September Corn | $9.25/bu. | 0.23 |
| Cotton Texas | ICE | December Cotton | $0.75/lb. | 0.17 |
| Cotton – Organic Practice2 Texas | ICE | December Cotton | $1.11/lb. | 0.17 |
| Grain Sorghum Texas | CBOT | September Corn | $4.25/bu. | 0.23 |
| Grain Sorghum – Organic Practice2 Texas | CBOT | September Corn | $8.89/bu. | 0.23 |
| Peanuts – Runner Type Texas | CBOT/ ICE | December Wheat, Cotton, Soybean Oil & Soybean Meal | $0.2110/lb. | 0.13 |
| Peanuts – Spanish Type Texas | CBOT/ ICE | December Wheat, Cotton, Soybean Oil & Soybean Meal | $0.3439/lb. | 0.13 |
| Rice – Long Grain Type Texas | CBOT | September Rice | $0.120/lb. | 0.15 |
| Rice – Medium & Short Grain Types Texas | CBOT | September Rice | $0.146/lb. | 0.15 |
| Rice – Long Grain Type; Organic Practice Texas | CBOT | September Rice | $0.161/lb. | 0.15 |
| Rice – Medium & Short Grain Types; Organic Practice Texas | CBOT | September Rice | $0.196/lb. | 0.15 |
| Soybeans Texas | CBOT | November Soybeans | $11.17/bu. | 0.18 |
| Soybeans – Organic Practice Texas | CBOT | November Soybeans | Not available.3 | |
| Sunflowers – Oil Type Texas | CBOT | July Soybean Oil | $0.213/lb. | 0.18 |
| Sunflowers – Oil Type; Organic Practice Texas | CBOT | July Soybean Oil | $0.388/lb. | 0.18 |
| Sunflowers – Confectionery Type Texas | CBOT | July Soybean Oil | $0.264/lb. | 0.18 |
| Sunflowers – Confectionery Type; Organic Practice Texas | CBOT | July Soybean Oil | $0.388/lb. | 0.18 |
| 1 Projected Prices and Volatility Factors are applicable for the Enhanced Coverage Option (ECO), the Supplemental Coverage Option (SCO) and Stacked Income Protection (STAX; cotton), where available. 2 For the 2021 CY, organic coverage is not available in all counties covered by the January 31 sales closing date. 3 For the 2021 CY, organic coverage is not available for soybeans in counties covered by the January 31 sales closing date. | ||||
The following 2021 CY margin projected prices and volatility factors are approved for the Margin Protection plan of insurance. 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: https://webapp.rma.usda.gov/apps/actuarialinformationbrowser/
Please see the following web page on RMA’s public website for program details: www.rma.usda.gov/en/Policy-and-Procedure/Insurance-Plans/Margin-Protection-for-Corn-Rice-Soybeans-and-Wheat
| Crop/Type | Exchange | Contract | Margin Projected Price | Volatility Factor |
| Rice – Long Grain Type & No Type Specified Texas | CBOT | September Rice | $0.120/lb. | 0.15 |
| Rice – Medium & Short Grain Types Texas | CBOT | September Rice | $0.146/lb. | 0.15 |