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
2022 Crop Year (CY) Common Crop Insurance Policy, Area Risk Protection Insurance and Margin Protection Projected Prices and Volatility Factors
Common Crop Insurance Policy & Area Risk Protection Insurance 1, 2, 3, 4
The 2022 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 2022 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/State | Exchange | Contract | Projected Price | Volatility Factor |
| Corn Alabama, Florida, Georgia, Louisiana & South Carolina | CBOT | SeptemberCorn | $5.87/bushel | 0.22 |
| Corn - Organic Practice Alabama, Florida, Georgia, Louisiana & South Carolina | CBOT | SeptemberCorn | $11.66/bushel | 0.22 |
| Corn Arkansas & Mississippi | CBOT | DecemberCorn | $5.75/bushel | 0.20 |
| Corn - Organic Practice Arkansas & Mississippi | CBOT | DecemberCorn | $11.42/bushel | 0.20 |
| Corn North Carolina | CBOT | DecemberCorn | $5.75/bushel | 0.21 |
| Corn - Organic Practice North Carolina | CBOT | DecemberCorn | $11.42/bushel | 0.21 |
| Corn Arizona, California & Nevada | CBOT | DecemberCorn | $5.75/bushel | 0.23 |
| Corn - Organic Practice Arizona, California & Nevada | CBOT | DecemberCorn | $11.42/bushel | 0.23 |
| Cotton All States | ICE | December Cotton | $1.02/pound | 0.22 |
| Cotton – Organic Practice All States | ICE | December Cotton | $1.42/pound | 0.22 |
| Grain Sorghum Alabama, Florida, Georgia & South Carolina | CBOT | December Corn | $5.73/bushel | 0.20 |
| Grain Sorghum – Organic Practice Alabama, Florida, Georgia & South Carolina | CBOT | December Corn | $11.97/bushel | 0.20 |
| Grain Sorghum Arkansas, Louisiana & Mississippi | CBOT | December Corn | $5.73/bushel | 0.21 |
| Grain Sorghum – Organic Practice Arkansas, Louisiana & Mississippi | CBOT | December Corn | $5.73/bushel | 0.21 |
| Grain Sorghum Arizona, California & North Carolina | CBOT | December Corn | $5.73/bushel | 0.23 |
| Grain Sorghum – Organic Practice Arizona, California & North Carolina | CBOT | December Corn | $11.97/bushel | 0.23 |
| Peanuts – Runner Type Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Missouri, North Carolina, South Carolina & Texas | CBOT/ ICE | December Wheat, Cotton, Soybean Oil & Soybean Meal | $0.2404/pound | 0.18 |
| Peanuts – Runner Type Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Missouri, North Carolina, South Carolina & Texas | CBOT/ ICE | December Wheat, Cotton, Soybean Oil & Soybean Meal | $0.4375/pound | 0.18 |
| Peanuts – Virginia Type Alabama, Florida, Georgia, Mississippi, North Carolina & South Carolina | CBOT/ ICE | December Wheat, Cotton, Soybean Oil & Soybean Meal | $0.2669/pound | 0.18 |
| Popcorn March 15 Sales Closing Date Alabama | CBOT | September Corn | $0.2524/pound | 0.22 |
| Popcorn – Organic Practice March 15 Sales Closing Date Alabama | CBOT | September Corn | $0.3634/pound | 0.22 |
| Rice – Long Grain Type Louisiana | CBOT | September Rice | $0.145/pound | 0.09 |
| Rice – Long Grain Type; Organic Practice Louisiana | CBOT | September Rice | $0.194/pound | 0.09 |
| Rice – Medium/Short Grain Types Louisiana | CBOT | September Rice | $0.204/pound | 0.09 |
| Rice – Medium/Short Grain Types; Organic Practice Louisiana | CBOT | September Rice | $0.274/pound | 0.09 |
| Rice – Long Grain Type Arkansas, Mississippi & Texas | CBOT | September4 Rice | $0.145/pound4 | 0.10 |
| Rice – Long Grain Type; Organic Practice Arkansas, Mississippi & Texas | CBOT | September4 Rice | $0.194/pound4 | 0.10 |
| Rice – Medium/Short Grain Types Arkansas, Mississippi & Texas | CBOT | September4 Rice | $0.204/pound4 | 0.10 |
| Rice – Medium/Short Grain Types; Organic Practice Arkansas, Mississippi & Texas | CBOT | September4 Rice | $0.274/pound4 | 0.10 |
| Rice – Long Grain Type California, Oklahoma & Tennessee | CBOT | September4 Rice | $0.145/pound4 | 0.11 |
| Rice – Long Grain Type; Organic Practice California, Oklahoma & Tennessee | CBOT | September4 Rice | $0.194/pound4 | 0.11 |
| Rice – Medium/Short Grain Types California | CBOT | September4 Rice | $0.255/pound4 | 0.11 |
| Rice – Medium/Short Grain Types; Organic Practice California | CBOT | September4 Rice | $0.342/pound4 | 0.11 |
| Rice – Medium/Short Grain Types Oklahoma & Tennessee | CBOT | September4 Rice | $0.204/pound4 | 0.11 |
| Rice – Medium/Short Grain Types; Organic Practice Oklahoma & Tennessee | CBOT | September4 Rice | $0.274/pound4 | 0.11 |
| Soybeans Arkansas, Louisiana, Mississippi & Texas | CBOT | November Soybeans | $13.69/bushel | 0.20 |
| Soybeans - Organic Practice Arkansas, Louisiana, Mississippi & Texas | CBOT | November Soybeans | $26.19/bushel | 0.20 |
| Soybeans Alabama, Florida, Georgia, North Carolina & South Carolina | CBOT | January(2023) Soybeans | $13.68/bushel | 0.19 |
| Soybeans - Organic Practice Alabama, Florida, Georgia, North Carolina & South Carolina | CBOT | January(2023) Soybeans | $26.17/bushel | 0.19 |
| 1 Projected Prices and Volatility Factors are applicable for the Enhanced Coverage Option (ECO) and the Supplemental Coverage Option (SCO), where available. | ||||
| 2 Projected Prices and Volatility Factors are applicable for Stacked Income Protection (STAX - cotton only), where available. | ||||
| 3 The long grain projected price (conventional practice) is used as the price election under the terms of the Hybrid Seed Rice Crop Provisions. | ||||
| 4 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. | ||||
Margin Protection
The following 2022 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 at the following web page on RMA’s public website: webapp.rma.usda.gov/apps/actuarialinformationbrowser/
Please see the following web page on RMA’s public website for program details: www.rma.usda.gov/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 Louisiana | CBOT | September Rice | $0.145/pound | 0.09 |
| Rice – Medium & Short Grain Types Louisiana | CBOT | September Rice | $0.204/pound | 0.09 |
| Rice – Long Grain Type & No Type Specified Arkansas, Mississippi & Texas | CBOT | September5 Rice | $0.145/pound5 | 0.10 |
| Rice – Medium & Short Grain Types Arkansas, Mississippi & Texas | CBOT | September5 Rice | $0.204/pound5 | 0.10 |
| Rice – Long Grain Type & No Type Specified California & Missouri | CBOT | September5 Rice | $0.145/pound5 | 0.11 |
| Rice – Medium & Short Grain Types California | CBOT | September5 Rice | $0.255/pound5 | 0.11 |
| Rice – Medium & Short Grain Types Missouri | CBOT | September5 Rice | $0.204/pound5 | 0.11 |
| 5 In accordance with the Margin Price Provisions, the CBOT September rice contract is used to derive the projected rice prices since the November contract lacks sufficient volume and open interest activity. | ||||