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 Organic Rice Price Factor, Organic Cotton Price Premium, and Popcorn Price Factors
The Risk Management Agency (RMA) derives prices for certain programs by applying factors and premiums to conventional projected and harvest prices established in accordance with the Commodity Exchange Price Provisions (CEPP). The factors and premiums for organic rice, organic cotton, popcorn and organic popcorn are provided below.
Organic Rice Price Factor
The ‘CEPP Section II: Rice’ document authorizes RMA to derive organic practice rice prices. The following 2021 crop year (CY) organic practice price factor will be applied to the conventional practice rice prices, in accordance with the CEPP, to derive the organic practice rice prices:- Organic Practice Rice Price Factor 1.34
Organic Cotton Price Premium
The ‘CEPP Section II: Cotton’ document authorizes RMA to derive organic practice cotton prices. The following 2021 CY organic practice price premium will be added to the conventional practice cotton prices, in accordance with the CEPP, to derive the organic practice cotton prices:- Organic Practice Cotton Price Premium $ 0.36 per pound
Popcorn Price Factors
The Popcorn Revenue Coverage (Pilot) Crop Provisions specify that projected and harvest prices shall be the “price for grain type corn determined in accordance with the [CEPP] multiplied by a factor…”. The factor converts the conventional per bushel corn price into a per pound popcorn price. The Special Provisions of Insurance contain similar language for the projected price for Yield Protection. The following conversion factor is applicable for the 2021 CY:- Popcorn Conversion Price Factor 0.0430
- Organic Practice Popcorn Conversion Price Factor 0.0619
DISPOSAL DATE: December 31, 2022