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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
Subject
2018 Crop Year (CY) Common Crop Insurance Policy, Area Risk Protection Insurance and Margin Protection Plan Projected Prices and Volatility Factors

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/State Exchange Contract Projected Price Volatility Factor
Corn Alabama, Florida, Georgia, Louisiana & South Carolina CBOT September Corn $3.82/bushel 0.14
Corn - Organic Practice Alabama, Florida, Georgia, Louisiana & South Carolina CBOT September Corn $8.75/bushel 0.14
Corn Arkansas & Mississippi CBOT December Corn $3.91/bushel 0.14
Corn - Organic Practice Arkansas & Mississippi CBOT December Corn $8.95/bushel 0.14
Corn North Carolina CBOT December Corn $3.91/bushel 0.14
Corn - Organic Practice North Carolina CBOT December Corn $8.95/bushel 0.14
Corn Arizona, California & Nevada CBOT December Corn $3.91/bushel 0.15
Corn - Organic Practice Arizona, California & Nevada CBOT December Corn $8.95/bushel 0.15
Cotton All States ICE December Cotton $0.75/pound 0.14
Cotton – Organic Practice All States ICE December Cotton $1.15/pound 0.14
Grain Sorghum Alabama, Florida, Georgia & South Carolina CBOT December Corn $3.78/bushel 0.13
Grain Sorghum – Organic Practice Alabama, Florida, Georgia & South Carolina CBOT December Corn $8.15/bushel 0.13
Grain Sorghum Arkansas, Louisiana & Mississippi CBOT December Corn $3.78/bushel 0.14
Grain Sorghum – Organic Practice Arkansas, Louisiana & Mississippi CBOT December Corn $8.15/bushel 0.14
Grain Sorghum Arizona, California & North Carolina CBOT December Corn $3.78/bushel 0.15
Grain Sorghum – Organic Practice Arizona, California & North Carolina CBOT December Corn $8.15/bushel 0.15
Peanuts – Runner Type Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina & Texas CBOT/ ICE December Wheat, Cotton, Soybean Oil & Soybean Meal $0.1961/pound 0.12
Peanuts – Spanish Type Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi & Texas CBOT/ ICE December Wheat, Cotton, Soybean Oil & Soybean Meal $0.2569/pound 0.12
Peanuts – Virginia Type Alabama, Florida, Georgia, Mississippi, North Carolina & South Carolina CBOT/ ICE December Wheat, Cotton, Soybean Oil & Soybean Meal $0.2216/pound 0.12
Popcorn March 15 Sales Closing Date Alabama CBOT September Corn $0.1643/pound 0.14
Popcorn – Organic Practice March 15 Sales Closing Date Alabama CBOT September Corn $0.2365/pound 0.14
Rice – Long Grain Type3 Louisiana CBOT September Rice $0.119/pound 0.11
Rice – Long Grain Type; Organic Practice Louisiana CBOT September Rice $0.159/pound 0.11
Rice – Medium/Short Grain Types Louisiana CBOT September Rice $0.131/pound 0.11
Rice – Medium/Short Grain Types; Organic Practice Louisiana CBOT September Rice $0.175/pound 0.11
Rice – Long Grain Type3 Arkansas, Mississippi & Texas CBOT September Rice $0.119/pound 0.12
Rice – Long Grain Type; Organic Practice Arkansas, Mississippi & Texas CBOT September Rice $0.159/pound 0.12
Rice – Medium/Short Grain Types Arkansas, Mississippi & Texas CBOT September Rice $0.131/pound 0.12
Rice – Medium/Short Grain Types; Organic Practice Arkansas, Mississippi & Texas CBOT September Rice $0.175/pound 0.12
Rice – Long Grain Type California, Illinois, Missouri, Oklahoma & Tennessee CBOT September Rice $0.119/pound 0.13
Rice – Long Grain Type; Organic Practice California, Illinois, Missouri, Oklahoma & Tennessee CBOT September Rice $0.159/pound 0.13

1 Projected Prices and Volatility Factors are applicable for 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. 3 The long grain projected price (conventional practice) is used as the price election under the terms of the Hybrid Seed Rice Crop Provisions.

Crop/Type/Practice/State Exchange Contract Projected Price Volatility Factor
Rice – Medium/Short Grain Types California CBOT September Rice $0.173/pound 0.13
Rice – Medium/Short Grain Types; Organic Practice California CBOT September Rice $0.231/pound 0.13
Rice – Medium/Short Grain Types Illinois, Missouri, Oklahoma & Tennessee CBOT September Rice $0.131/pound 0.13
Rice – Medium/Short Grain Types; Organic Practice Illinois, Missouri, Oklahoma & Tennessee CBOT September Rice $0.175/pound 0.13
Soybeans Arkansas, Louisiana, Mississippi & Texas CBOT November Soybeans $10.04/bushel 0.13
Soybeans - Organic Practice Arkansas, Louisiana, Mississippi & Texas CBOT November Soybeans $20.25/bushel 0.13
Soybeans Alabama, Florida, Georgia, North Carolina & South Carolina CBOT January (2019) Soybeans $10.09/bushel 0.13
Soybeans - Organic Practice Alabama, Florida, Georgia, North Carolina & South Carolina CBOT January (2019) Soybeans $20.35/bushel 0.13

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/Type Exchange Contract Margin Projected Price Volatility Factor
Rice – Long Grain Type & No Type Specified Louisiana CBOT September Rice $0.119/pound 0.11
Rice – Medium & Short Grain Types Louisiana CBOT September Rice $0.131/pound 0.11
Rice – Long Grain Type & No Type Specified Arkansas, Mississippi & Texas CBOT September Rice $0.119/pound 0.12
Rice – Medium & Short Grain Types Arkansas, Mississippi & Texas CBOT September Rice $0.131/pound 0.12
Rice – Medium & Short Grain Types California CBOT September Rice $0.173/pound 0.13
Rice – Medium & Short Grain Types Missouri CBOT September1 Rice $0.131/pound 0.13

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.