PRODUCT MANAGEMENT BULLETIN: PM–16-008
United States Department of Agriculture
Farm and Foreign Agricultural Services
Risk Management Agency
1400 Independence Avenue, SW
Stop 0801
Washington, DC 20250-0801
Date
To:
All Risk Management Agency Field Offices
All Other Interested Parties
From:
Subject:
- Background
-
The CEPP peanut factors necessary to establish the insured’s amount of protection under the peanut program for the 2016 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 February 1, 2016 to February 28, 2016. These factors apply only to States with a Sales Closing Date (SCD) of March 15, 2016. They are determined in accordance with the Peanut Price Methodology guidelines published and available at CEPP - PEANUTS.
- Action
-
The factor values for the pricing of Yield Protection (01), Revenue Protection (02), and Revenue Protection with Harvest Price Exclusion (03) for 2016 crop year peanuts in states and counties with a March 15, 2016 SCD as specified in the CEPP are shown below.
The values for the exponent factors for each exchange commodity futures contract are:
Commodity Abbreviation Value Wheat Ewh -0.2423 Cotton Ect 0.3135 Soybean Oi Eso 0.8391 Soybean Meal Esm -0.3768 The Values for the price constant and price weighting factors are:
Variable Abbreviation Value Prince Constant C 0.1558 Price Weighting Formula W 1.8259 The Values for the type factors are:
Type Abbreviation Value Runner Tru 1.00 Spanish Tsp 1.40 Valencia Tva 1.20 Virginia Tvi 1.20
Additionally, the factor specifications for commodities utilized to determine price volatility are as follows:
Commodity Abbreviation Value Wheat Gwh -0.4241 Cotton Gct 0.8045 Soybean Oil Gso 0.0954 Soybean Meal Gsm 0.4326 The Value for the volatility weighting factor is:
Variable Abbreviation Value Volatility Weighting Factor V 1.0189 Disposal Date:
December 31, 2016