PRODUCT MANAGEMENT BULLETIN: PM–17-001
United States Department of Agriculture
Farm and Foreign Agricultural Services
Risk Management Agency
1400 Independence Avenue, SW
Stop 0801
Washington, DC 20250-0801
Date
To:
All Risk Management Agency Field Offices
All Other Interested Parties
From:
Subject:
- Background
-
The CEPP peanut factors necessary to establish the insured’s amount of protection under the peanut program for the 2017 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 January 15, 2017 to February 14, 2017. These factors apply only to states with a Sales Closing Date (SCD) of February 28, 2017. They are determined in accordance with the Peanut Price Methodology guidelines published and available at: http://www.rma.usda.gov/policies/2015/15-cepp-pt.pdf.
- Action
-
The factor values for the pricing of Yield Protection (01), Revenue Protection (02), and Revenue Protection with Harvest Price Exclusion (03) for peanuts in states and counties with a February 28, 2017, SCD as specified in the CEPP for the 2017 crop year are shown below.
The values for the exponent factors for each commodity exchange futures contract are:Commodity Abbreviation Value Wheat
πΈπ€β
-0.2262
Cotton
πΈπt
0.3128
Soybean Oil
πΈπ o
0.8091
Soybean Meal
πΈπ m
-0.3764
The values for the price constant and price weighting factors are:
Variable
Abbreviation
Value Price Constant
πΆ
0.1682
Price Weighting Factor
π
0.9724
The values for the type factors are:
Type Abbreviation Value Runner
ππu
1.00
Spanish
ππ p
1.31
Valencia
ππ£a
1.11
Virginia
ππ£i
1.11
Additionally, the factor specifications for commodities utilized to determine price volatility are as follows:
Commodity Abbreviation
Value Wheat
πΊπ€β
-0.2404
Cotton
πΊπt
0.7058
Soybean Oil
πΊπ o
0.3767
Soybean Meal
πΊπ m
0.2810
The value for the volatility weighting factor is:
Variable
Abbreviation Value Volatility Weighting Factor
π
0.5816
December 31, 2017