1.  

PRODUCT MANAGEMENT BULLETIN: PM–20-066

United States Department of Agriculture


Farm and Foreign Agricultural Services


Risk Management Agency


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

Date

September 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    9/15/2020

Subject:

2020 Crop Year (CY) Common Crop Insurance Policy Harvest Prices; 2021 CY Common Crop Insurance Policy and Area Risk Protection Insurance Projected Prices and Volatility Factors; 2021 CY Malting Barley Endorsement Price Component; and 2021 CY Margin Protection Plan Projected Prices and Volatility Factors

Common Crop Insurance Policy 1

The 2020 CY harvest prices shown below are approved for the following plans of insurance: Revenue Protection and Revenue Protection with Harvest Price Exclusion.

The harvest prices are applicable for the crop, sales closing date, states and practices indicated in the following table.

Crop/Sales Closing Date/
State/Practice		 Exchange Contract Harvest Price
Corn
February 28 Sales Closing Date
Arkansas & Mississippi		 CBOT December
Corn		 $3.54/bushel
Corn - Organic Practice
February 28 Sales Closing Date
Arkansas & Mississippi		 CBOT December
Corn		 $7.91/bushel

1 Harvest Prices are applicable for the Supplemental Coverage Option (SCO). 

Common Crop Insurance Policy & Area Risk Protection Insurance 1

The 2021 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 2021 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 are applicable for the crops, sales closing dates, states, types and practices indicated in the following table.

Crop/Sales Closing Date/
State/Type/Practice		 Exchange Contract Projected Price Volatility Factor
Barley
September 30 Sales Closing Date
Colorado (Winter types), Delaware, Georgia, Illinois, Indiana, Kansas (Winter type), Kentucky, Maryland, Missouri, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas & Virginia		 CBOT July
Corn		 $3.27/bushel 0.16
Barley – Organic Practice
September 30 Sales Closing Date
Colorado (Winter types), Delaware, Georgia, Illinois, Indiana, Kansas (Winter type), Kentucky, Maryland, Missouri, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas & Virginia		 CBOT July
Corn		 $6.99/bushel 0.16
Barley
September 30 Sales Closing Date
New York (Winter type), Pennsylvania (Winter type) & West Virginia		 CBOT September
Corn		 $3.26/bushel 0.16
Barley – Organic Practice
September 30 Sales Closing Date
New York (Winter type), Pennsylvania (Winter type) & West Virginia		 CBOT September
Corn		 $6.97/bushel 0.16
Barley
September 30 Sales Closing Date
California (Winter types), Idaho (Winter types), Oregon (Winter types) & Washington (Winter types)		 CBOT September
Corn		 $3.26/bushel 0.16
Barley – Organic Practice
September 30 Sales Closing Date
California (Winter types), Idaho (Winter types), Oregon (Winter types) & Washington (Winter types)		 CBOT September
Corn		 $6.97/bushel 0.16
Barley
March 15 Sales Closing Date
California (Winter types w/o Winter Coverage Endorsement), Idaho (Winter types w/o Winter Coverage Endorsement), Oregon (Winter types w/o Winter Coverage Endorsement) & Washington (Winter types w/o Winter Coverage Endorsement)		 CBOT September
Corn		 $3.26/bushel 0.16
Barley – Organic Practice
March 15 Sales Closing Date
California (Winter types w/o Winter Coverage Endorsement), Idaho (Winter types w/o Winter Coverage Endorsement), Oregon (Winter types w/o Winter Coverage Endorsement) & Washington (Winter types w/o Winter Coverage Endorsement)		 CBOT September
Corn		 $6.97/bushel 0.16
Canola - Canola Type
September 30 Sales Closing Date
Alabama and Georgia		 ICE

July
Canola

 $0.179/pound 0.10
Canola - Rapeseed Type
September 30 Sales Closing Date
Alabama and Georgia		 ICE July
Canola		 $0.237/pound 0.00
Wheat
September 30 Sales Closing Date
Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina & Tennessee		 CBOT July
SRW Wheat		 $5.54/bushel 0.15
Wheat – Organic Practice
September 30 Sales Closing Date
Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina & Tennessee		 CBOT July
SRW Wheat		 $11.46/bushel 0.15
Wheat
September 30 Sales Closing Date
Delaware, Illinois, Indiana, Iowa (Winter), Maryland, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Virginia & West Virginia		 CBOT September
SRW Wheat		 $5.60/bushel 0.15
Wheat – Organic Practice
September 30 Sales Closing Date
Delaware, Illinois, Indiana, Iowa (Winter), Maryland, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Virginia & West Virginia		 CBOT September
SRW Wheat		 $11.58/bushel 0.15
Wheat
September 30 Sales Closing Date
Wisconsin (Winter)		 CBOT September
SRW Wheat		 $5.60/bushel 0.16
Wheat – Organic Practice
September 30 Sales Closing Date
Wisconsin (Winter)		 CBOT September
SRW Wheat		 $11.58/bushel 0.16
Wheat
September 30 Sales Closing Date
Kansas, New Mexico (Winter & Spring), Oklahoma & Texas (Winter & Spring)		 KCBT July
HRW Wheat		 $4.90/bushel 0.16
Wheat – Organic Practice
September 30 Sales Closing Date
Kansas, New Mexico (Winter & Spring), Oklahoma & Texas (Winter & Spring)		 KCBT July
HRW Wheat		 $10.13/bushel 0.16
Wheat
September 30 Sales Closing Date
Colorado (Winter), Nebraska (Winter) & South Dakota (Winter)		 KCBT September
HRW Wheat		 $4.98/bushel 0.16
Wheat – Organic Practice
September 30 Sales Closing Date
Colorado (Winter), Nebraska (Winter) & South Dakota (Winter)		 KCBT September
HRW Wheat		 $10.30/bushel 0.16
Wheat
September 30 Sales Closing Date
Montana (Winter) & Wyoming (Winter)		 KCBT September
HRW Wheat		 $4.98/bushel 0.17
Wheat – Organic Practice
September 30 Sales Closing Date
Montana (Winter) & Wyoming (Winter)		 KCBT September
HRW Wheat		 $10.30/bushel 0.17
Wheat
September 30 Sales Closing Date
California (Winter), Idaho (Winter), Oregon (Winter) & Washington (Winter)		 CBOT September
SRW Wheat
with PME Adjustment		 $6.33/bushel 0.16
Wheat – Organic Practice
September 30 Sales Closing Date
California (Winter), Idaho (Winter), Oregon (Winter) & Washington (Winter)		 CBOT September
SRW Wheat
with PME Adjustment		 $13.09/bushel 0.16
Wheat
September 30 Sales Closing Date
Idaho (Spring), Oregon (Spring)* & Washington (Spring)
* The 2021 CY projected price for Klamath County, Oregon – Spring type will be derived at a later date, using a February 2021 projected price discovery period.		 MGE September
HRS Wheat		 $5.68/bushel 0.14
Wheat – Organic Practice
September 30 Sales Closing Date
Idaho (Spring), Oregon (Spring)* & Washington (Spring)
* The 2021 CY projected price for Klamath County, Oregon – Spring type will be derived at a later date, using a February 2021 projected price discovery period.		 MGE September
HRS Wheat		 $11.75/bushel 0.14
Wheat
October 31 Sales Closing Date
Nevada (Winter) & Utah (Winter)		 CBOT September
SRW Wheat with PME Adjustment		 $6.33/bushel 0.16
Wheat – Organic Practice
October 31 Sales Closing Date
Nevada (Winter) & Utah (Winter)		 CBOT September
SRW Wheat with PME Adjustment		 $13.09/bushel 0.16
Wheat
October 31 Sales Closing Date
Nevada (Spring) & Utah (Spring)		 MGE September
HRS Wheat		 $5.68/bushel 0.14
Wheat – Organic Practice
October 31 Sales Closing Date
Nevada (Spring) & Utah (Spring)		 MGE September
HRS Wheat		 $11.75/bushel 0.14
Wheat – Durum Type
September 30 Sales Closing Date
New Mexico		 MGE July
HRS Wheat		 $6.57/bushel 0.15
Wheat – Durum Type
Organic Practice
September 30 Sales Closing Date
New Mexico		 MGE July
HRS Wheat		 $13.59/bushel 0.15

1 Harvest Prices are applicable for the Supplemental Coverage Option (SCO).

Malting Barley Endorsement

The Malting Barley Endorsement (MBE) utilizes a Chicago Board of Trade (CBOT) soft red wheat price component to derive the 2021 CY projected price for any insured whose malt barley contract provides for a premium amount above or below a base price to be determined, and whose base price is not determined by the acreage reporting date. Please see the MBE for details:

https://www.rma.usda.gov/-/media/RMAweb/Policies/Small-Grains/2017/Small-Grains-Crop-Provisions-17-0011/Malting-Barley-Endorsement-21-0091b.ashx

Malt Barley Type Exchange Contract Projected Price
Component		 Volatility
Factor
Fall Planted Type CBOT September
SRW Wheat		 $5.60/bushel 0.16

Margin Protection Plan

The following 2021 CY margin projected prices and volatility factors are approved for the Margin Protection Plan. 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:

https://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/States/Type Exchange Contract Margin
Projected
Price		 Volatility
Factor
Corn – Grain Type
All Insured States		 CBOT December
Corn		 $3.82/bushel 0.16
Soybeans
All Insured States		 CBOT November
Soybeans		 $9.36/bushel 0.13
Wheat
All Insured States		 MGE September
HRS Wheat		 $5.68/bushel 0.14

 

DISPOSAL DATE
December 31, 2021

USDA is an Equal Opportunity Employer and Provider

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