PRODUCT MANAGEMENT BULLETIN: PM–18-064
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 - Peanuts factors necessary to establish the insured’s amount of protection under the peanut program for the 2019 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, 2018 to January 14, 2019. These factors apply only to states with a Sales Closing Date (SCD) of January 31, 2019. They are determined in accordance with the Peanut Price Methodology guidelines published and available at Policy-and-Procedure/Insurance-Plans/Commodity-Exchange-Price-Provisions-CEPP.
- Action
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The factor values for peanuts in states and counties with a January 31, 2019 SCD as specified in the CEPP – Peanuts document for the 2019 crop year are shown below.
The values for the exponent factors for each commodity exchange futures contract are:
Commodity Abbreviation Value Wheat Ewh -0.2619 Cotton Ect 0.2442 Soybean Oil Eso 0.8929 Soybean Meal Esm -0.3232
The values for the price constant and price weighting factors are:Variable Abbreviation Value Price Constant C 0.1520 Price Weighing Formula W 1.7788
The values for the type factors are:Type Abbreviation Value Runner Tru 1.00 Spanish Tsp 1.31 Valencia Tva 1.05 Virginia Tvi 1.05
Additionally, the factor specifications for commodities utilized to determine price volatility are as follows:Commodity Abbreviation Value Wheat
Gwh 0.1134 Cotton Gct 0.4437 Soybean Oil Gso -0.0376 Soybean Meal Gsm 0.0032 The value for the volatility weighting factor is:
Variable Abbreviation Value Volatility Weighting Factor V 2.8265 DISPOSAL DATE:
December 31, 2019