INFORMATIONAL MEMORANDUM: PM–17-071
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:
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The CEPP peanut factors necessary to establish the insured’s amount of protection under the peanut program for the 2018 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, 2017 to January 14, 2018. These factors apply only to states with a Sales Closing Date (SCD) of January 31, 2018. They are determined in accordance with the Peanut Price Methodology guidelines published and available at www.rma.usda.gov/policies/2015/15-cepp-pt.pdf.
- Action
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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 January 31, 2018 SCD as specified in the CEPP for the 2018 crop year are shown below.
The values for the exponent factors for each commodity exchange futures contract are:
Commodity Abbreviation Value Wheat Ewh -0.1683 Cotton Ect 0.3282 Soybean Oil Eso 0.7470 Soybean Meal Esm -0.3787 The values for the price constant and price weighting factors are:
Variable Abbreviation Value Price Constant C 0.1685 Price Weighting Formula W 0.9443 The values for the type factors are:
Type Abbreviation Value Runner Tru 1.00 Spanish Tsp 1.31 Valencia Tva 1.08 Virginia Tvi 1.08 Additionally, the factor specifications for commodities utilized to determine price volatility are as follows:
Commodity Abbreviation Value Wheat Gwh -0.0178 Cotton Gct 0.8643 Soybean Oil Gso 0.1975 Soybean Meal Gsm -0.5615 The value for the volatility weighting factor is:
Variable Abbreviation Value Volatility Weighting Factor V 4.8144
DISPOSAL DATE:
December 31, 2018