All Risk Management Agency Field Offices
All Other Interested Parties
Background
The CEPP – Peanuts factors necessary to establish the insured’s amount of protection under the peanut program for the 2023 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 December 15, 2022, to January 14, 2023. These factors apply only to states with a Sales Closing Date (SCD) of January 31, 2023. They are determined in accordance with the Peanut Price Methodology guidelines published and available at www.rma.usda.gov/sites/default/files/2025-02/Commodity-Exchange-Price-Provisions---Peanuts-21-CEPP-PT.
Action
The factor values for peanuts in states and counties with a January 31, 2023, SCD, as specified in the CEPP – Peanuts document for the 2023 crop year, are shown below.
The values for the exponent factors for each commodity exchange futures contract are:
| Commodity | Abbreviation | Value |
|---|---|---|
| Wheat | 𝐸𝑤ℎ | -0.1534 |
| Cotton | 𝐸𝑐t | 0.2835 |
| Soybean Oil | 𝐸𝑠o | 0.4074 |
| Soybean Meal | 𝐸𝑠m | -0.0980 |
The values for the price constant and price weighting factors are:
| Variable | Abbreviation | Value |
|---|---|---|
| Price Constant | C | 0.1423 |
| Price Weighting Formula | W | 0.3861 |
The values for the type factors are:
| Type | Abbreviation | Value |
|---|---|---|
| Runner | Tru | 1.00 |
| Spanish | Tsp | 1.57 |
| Valencia | Tva | 1.13 |
| Virginia | Tvi | 1.13 |
Additionally, the factor specifications for commodities utilized to determine price volatility are as follows:
| Commodity | Abbreviation | Value |
|---|---|---|
| Wheat | Gwh | -0.0246 |
| Cotton | Gct | 0.3598 |
| Soybean Oil | Gso | 0.0181 |
| Soybean Meal | Gsm | 0.0518 |
The value for the volatility weighting factor is:
| Variable | Abbreviation | Value |
|---|---|---|
| Volatility Weighting Factor | V | 4.9455 |
DISPOSAL DATE:
December 31, 2023