The CEPP - Peanuts factors necessary to establish the insured’s amount of protection under the peanut program for the 2020 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, 2019 to January 14, 2020. These factors apply only to states with a Sales Closing Date (SCD) of January 31, 2020. They are determined in accordance with the Peanut Price Methodology guidelines published and available at www.rma.usda.gov/-/media/RMAweb/Policies/CEPP/2015/Commodity-Exchange-Price-Provisions---Peanuts-15-CEPP-PT.ashx.

The factor values for peanuts in states and counties with a January 31, 2020 SCD as specified in the CEPP – Peanuts document for the 2020 crop year are shown below.

The values for the exponent factors for each commodity exchange futures contract are:

Commodity	Abbreviation	Value
Wheat	𝐸𝑤ℎ	-0.2433
Cotton	𝐸𝑐t	0.2668
Soybean Oil	𝐸𝑠o	0.8144
Soybean Meal	𝐸sm	-0.2420

The values for the price constant and price weighting factors are:

Variable	Abbreviation	Value
Price Constant	𝐶	0.1580
Price Weighting Formula	𝑊	0.8110

The values for the type factors are:

Type	Abbreviation	Value
Runner	𝑇𝑟u	1.00
Spanish	𝑇𝑠p	1.33
Valencia	𝑇𝑣a	1.06
Virginia	𝑇𝑣I	1.06

Additionally, the factor specifications for commodities utilized to determine price volatility
are as follows:

Commodity	Abbreviation	Value
Wheat	𝐺𝑤ℎ	0.1827
Cotton	𝐺ct	0.5192
Soybean Oil	𝐺so	-0.2267
Soybean Meal	𝐺sm	0.4439

The value for the volatility weighting factor is:

Variable	Abbreviation	Value
Volatility Weighting Factor	V	0.7664

 

DISPOSAL DATE:
December 31, 2020