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Product Management Bulletin-PM-16-008

Date
To
All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties
From
Tim B. Witt, Deputy Administrator
Subject
2016 Crop Year Commodity Exchange Price Provisions – Peanuts (CEPP) Factors – March 15, 2016 Sales Closing Date

The CEPP peanut factors necessary to establish the insured’s amount of protection under the peanut program for the 2016 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, 2016 to February 28, 2016. These factors apply only to States with a Sales Closing Date (SCD) of March 15, 2016. They are determined in accordance with the Peanut Price Methodology guidelines published and available at CEPP - PEANUTS.

The factor values for the pricing of Yield Protection (01), Revenue Protection (02), and Revenue Protection with Harvest Price Exclusion (03) for 2016 crop year peanuts in states and counties with a March 15, 2016 SCD as specified in the CEPP are shown below.

The values for the exponent factors for each exchange commodity futures contract are:

Commodity Abbreviation Value
Wheat Ewh -0.2423
Cotton Ect 0.3135
Soybean Oi Eso 0.8391
Soybean Meal Esm -0.3768

The Values for the price constant and price weighting factors are:

Variable Abbreviation Value
Prince Constant C 0.1558
Price Weighting Formula W 1.8259

The Values for the type factors are:

Type Abbreviation Value
Runner Tru 1.00
Spanish Tsp 1.40
Valencia Tva 1.20
Virginia Tvi

1.20

Additionally, the factor specifications for commodities utilized to determine price volatility are as follows:

Commodity Abbreviation Value
Wheat Gwh -0.4241
Cotton Gct 0.8045
Soybean Oil Gso 0.0954
Soybean Meal Gsm 0.4326

The Value for the volatility weighting factor is:

Variable Abbreviation Value
Volatility Weighting Factor V 1.0189

Disposal Date: December 31, 2016