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PRODUCT MANAGEMENT BULLETIN: PM–20-008

United States Department of Agriculture


Farm and Foreign Agricultural Services


Risk Management Agency


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

Date

February 03, 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    2/3/2020

Subject:

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

Common Crop Insurance Policy & Area Risk Protection Insurance 1

The 2020 CY projected prices shown below are approved for the following plans of insurance: Yield Protection, Area Yield Protection, Revenue Protection, Area Revenue Protection, Revenue Protection with Harvest Price Exclusion, and Area Revenue Protection - Harvest Price Exclusion. The 2020 CY volatility factors shown below are approved for the following plans of insurance: Revenue Protection, Area Revenue Protection, Revenue Protection with Harvest Price Exclusion, and Area Revenue Protection - Harvest Price Exclusion. The projected prices and volatility factors apply to policies with a February 15 sales closing date and are applicable for the crops, types, practices and states indicated below:

Crop/Type/Practice/State Exchange Contract 2 Projected Price Volatility Factor
Corn
Texas		 CBOT December
Corn		 $4.00/bu. 0.14
Corn - Organic Practice
Texas		 CBOT December
Corn		 $8.94/bu. 0.14
Grain Sorghum
Texas		 CBOT December
Corn		 $3.80/bu. 0.14
Grain Sorghum - Organic Practice
Texas		 CBOT December
Corn		 $8.34/bu. 0.14

Rice - Long Grain Type
Florida

 CBOT September 2
Rice
 $0.121/lb. 0.13
Rice - Long Grain Type;
Organic Practice
Florida		 CBOT

September
Rice 2

 $0.162/lb. 0.13
Rice - Medium & Short Grain Types
Florida		 CBOT September
Rice 2
 $0.148/lb. 0.13

Rice - Medium & Short Grain Types;
Organic Practice
Florida

 CBOT September
Rice 2		 $0.197/lb. 0.13

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

2 In accordance with the Commodity Exchange Price Provisions (CEPP), the CBOT September rice contract is used to derive the projected rice prices since the November contract lacks sufficient volume and open interest activity.


DISPOSAL DATE
December 31, 2020

USDA is an Equal Opportunity Employer and Provider

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