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PRODUCT MANAGEMENT BULLETIN: PM–20-003

United States Department of Agriculture


Farm and Foreign Agricultural Services


Risk Management Agency


1400 Independence Avenue, SW
Stop 0801
Washington, DC  20250-0801

Date

January 15, 2020

To:

All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties

From:

Richard H. Flournoy, Deputy Administrator /s/ Richard H. Flournoy    1/15/2020

Subject:

2020 Crop Year (CY) Common Crop Insurance Policy and Margin Protection Projected Prices and Volatility Factors

Common Crop Insurance Policy 1

The 2020 CY projected prices shown below are approved for the Yield Protection, Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance. The 2020 CY volatility factors shown below are approved for the Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance. The projected prices and volatility factors apply to policies with a January 31 sales closing date and are applicable for the crops, types, practices and states indicated below:

Crop/Type/Practice/State Exchange Contract Projected Price Volatility Factor
Corn
Texas		 CBOT September
Corn		 $4.00/bu. 0.15
Corn – Organic Practice 2
Texas		 CBOT September
Corn		 $8.94/bu. 0.15
Cotton
Texas		 ICE December
Cotton		 $0.71/lb. 0.13
Cotton – Organic Practice 2
Texas		 ICE December
Cotton		 $1.09/lb. 0.13
Grain Sorghum
Texas		 CBOT September
Corn		 $3.80/bu. 0.15
Grain Sorghum – Organic Practice 2
Texas		 CBOT September
Corn		 $8.34/bu. 0.15
Peanuts – Runner Type
Texas
 CBOT/ICE December
Wheat, Cotton,
Soybean Oil & Soybean Meal		 $0.2095/lb 0.09
Peanuts – Spanish Type
Texas		 CBOT/ICE December
Wheat, Cotton,
Soybean Oil & Soybean Meal		 $0.2786/lb. 0.09
Rice – Long Grain Type
Texas		 CBOT September
Rice		 $0.120/lb. 0.14
Rice – Medium & Short Grain Types
Texas		 CBOT September
Rice		 $0.127/lb. 0.14
Rice – Long Grain Type; Organic Practice
Texas		 CBOT September
Rice		 $0.161/lb. 0.14
Rice – Medium & Short Grain Types; Organic Practice
Texas		 CBOT September
Rice		 $0.170/lb. 0.14
Soybeans
Texas		 CBOT November
Soybeans		 $9.71/bu. 0.12
Soybeans – Organic Practice
Texas		 CBOT November
Soybeans		 Not available. 3
Sunflowers – Oil Type
Texas		 CBOT July
Soybean Oil		 $0.185/lb. 0.11
Sunflowers – Oil Type; Organic Practice
Texas		 July
Soybean Oil		 $0.331/lb. 0.11
Sunflowers – Confectionery Type
Texas		 CBOT July
Soybean Oil		 $0.248/lb. 0.11
Sunflowers – Confectionery Type;
Organic Practice
Texas		 CBOT July
Soybean Oil		 $0.331/lb. 0.11

1 Projected Prices and Volatility Factors are applicable for the Supplemental Coverage Option (SCO).

2 For the 2020 CY, organic coverage is not available in all counties covered by the January 31 sales closing date.

3 For the 2020 CY, organic coverage is not available for soybeans in counties covered by the January 31 sales closing date.

Margin Protection

The following 2020 CY margin projected prices and volatility factors are approved for the Margin Protection plan of insurance. The margin projected price is used in conjunction with projected input prices and the expected county yield to derive the expected margin (per acre), trigger margin (per acre) and liability. The expected margins for each crop/county are available at the following web page on RMA’s public website: webapp.rma.usda.gov/apps/actuarialinformationbrowser/

Please see the following web page on RMA’s public website for program details: https://www.rma.usda.gov/en/Policy-and-Procedure/Insurance-Plans/Margin-Protection-for-Corn-Rice-Soybeans-and-Wheat

Crop/Type Exchange Contract Margin Projected Price Volatility Factor 
Rice – Long Grain Type & No Type Specified
Texas		 CBOT September
Rice		 $0.120/lb. 0.14
Rice – Medium & Short Grain Types
Texas		 CBOT September
Rice		 $0.127/lb. 0.14

DISPOSAL DATE
December 31, 2020

USDA is an Equal Opportunity Employer and Provider

   Office

  • USDA RMA Room 403
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    Kansas City, MO 64133-4675
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