PRODUCT MANAGEMENT BULLETIN: PM–16-018
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:
-
Dry Pea and Dry Bean Crop Provisions and Revenue Endorsement1 The approved 2016 CY projected prices shown below are for the Yield Protection, Revenue Protection, and Revenue Protection with Harvest Price Exclusion plans of insurance. The approved 2016 CY volatility factors shown below are for the Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance. The projected prices and volatility factors are applicable for the states, crops, and types indicated in the subsequent tables.
As authorized by the Special Provisions, RMA is providing additional projected prices for selected dry bean and dry pea types where the Dry Bean Revenue Endorsement (DBRE) and Dry Pea Revenue Endorsement (DPRE) do not offer coverage for price movement. Per the Special Provisions, the additional projected price shall be the basis for the premium determination and settlement of claims.
While the minimum data requirements to offer revenue coverage (i.e. Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance) were met for both Dark Red Kidney and Pinto types in Michigan, offering revenue coverage could encourage revenue product purchases despite the historically low probability of sufficient data to support the release of harvest prices. Thus, the submitter of the DBRE and DPRE as well as the pulse producer groups do not believe it is in the best interest of growers to offer revenue coverage for these types. Consequently, these types will not have revenue coverage for price movement.
1 Projected Prices and Volatility Factors are applicable for the Supplemental Coverage Option (SCO), as appropriate.
Michigan
Dry Beans
DBRE - Revenue TypesProjected Price Volatility Factor Updated CAT Price (Yield Protection Only ) ($ / pound) ($ / pound) Type: Black $0.25 0.15 $0.1375 Type: Dark Red Kidney* $0.32 0.00 $0.1760 Type: Pea (Navy) $0.25 0.15 $0.1375 Type: Pinto* $0.22 0.00 $0.1210 - Pinto
( Organic)**$0.33 N/A $0.1815 Type: Small Red $0.29 0.15 $0.1595 Minnesota and North Dakota
Dry Beans
DBRE - Revenue TypesProjected Price Volatility Factor Updated CAT Price (Yield Protection Only) ($ / pound) ($ / pound) Type : Black $0.22 0.15 $0.1210 Type: Dark Red Kidney $0.34 0.15 $0.1870 Type: Pea (Navy) $0.22 0.15 $0.1210 Type: Pinto $0.22 0.15 $0.1210 - Pinto (organic)** $0.33 0.15 $0.1815 * There will be no price movement for this type; the harvest price is set equal to the projected price and the volatility factor is set equal to zero.
** Premium organic projected prices are only being offered for the yield-based plans of insurance.Montana and North Dakota
Dry Peas
DPRE – Revenue Types
Projected Price Volatility Factor Updated CAT Price (Yield Protection Only) ($ / pound) ($ / pound) Type: Spring Smooth Green/Yellow $0.11
0.16 $0.0605 - Spr. Sm. Green/Yellow (organic) ** $0.17 N/A $0.0935 Type: Spring Lentils $0.26 0.16 $0.1430 - Spring Lentils (organic) ** $0.39 N/A $0.2145 Type: Spring Small Kabuli Chickpeas $0.23 $0.23 $0.1265 - Spr. Sm. Kabuli Chick. (organic) ** $0.35 N/A $0.1925 Type: Spring Large Kabuli Chickpeas $0.32 0.16 $0.1760 - Spr. Lar. Kabuli Chick. (organic) ** $0.48 N/A $0.2640 Idaho and Washington
Dry Peas
DPRE - Revenue TypesProjected Price Volatility Factor Updated CAT Price (Yield Protection Only) ($ / pound)
($ / pound)
Type: Spring Smooth Green/Yellow $0.16 0.16 $0.0880 - Spr. Sm. Green/Yellow (organic) ** $0.24 N/A $0.1320 Type: Spring Lentils $0.28 0.16 $0.1540 - Spring Lentils (organic) ** $0.42 N/A $0.2310 Type: Spring Small Kabuli Chickpeas $0.25 0.16 $0.1375 - Spr. Sm. Kabuli Chick. (organic) * $0.38 N/A $0.2090 Type: Spring Large Kabuli Chickpeas $0.31 0.16 $0.1705 - Spr. Lrg. Kabuli Chick. (organic)** $0.47 N/A $0.2585 ** Premium organic projected prices are only being offered for the yield-based plans of insurance.
Michigan
Dry Beans
DBRE - Non-Revenue TypesAdditional Projected Price 11/30/2015 Projected Price Updated CAT Price (Yield Protection Only) ($ / pound) ($ / pound) ($ / pound) Type: Adzuki $0.29 $0.24 $0.1595 Type: Great Northern $0.23 $0.17 $0.1265 Type: Pink $0.23 $0.20 $0.1265 Type: Small White $0.25 $0.23 $0.1375 Type: Tebo $0.23 $0.17 $0.1265 Minnesota and North Dakota
Dry Beans
DBRE - Non-Revenue TypesAdditional Projected Price 11/30/2015 Projected Price Updated CAT Price (Yield Protection Only) ($ / pound) ($ / pound) ($ / pound) Type: Great Northern $0.21 $0.17 $0.1155 Type: Pink $0.23 $0.22 $0.1265 Type: Small Red $0.24 $0.19 $0.1320 Type: Tebo $0.22 $0.17 $0.1210 Idaho, Montana, North Dakota
Dry Peas
DBRE - Non-Revenue TypesAdditional Projected Price 11/30/2015 Projected Price Updated CAT Price (Yield Protection Only) ($ / pound) ($ / pound) ($ / pound) Type: Spring Austrian/Forage Peas $0.21 $0.20 $0.1155 - Spr. Austrian/Forage Peas (organic)** $0.32 $0.30 $0.1760 ** Premium organic projected prices are only being offered for the yield-based plans of insurance.
DISPOSAL DATE:
December 31, 2016