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PRODUCT MANAGEMENT BULLETIN: PM–17-056

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 19, 2017

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    9/19/2017

Subject:

2018 Crop Year (CY) Malting Barley Endorsement Projected Price Component and Volatility Factor, 2018 CY Margin Protection Plan Projected Prices and Volatility Factors and 2018 CY Margin Protection Plan with Harvest Price Option Projected Prices and Volatility Factors
Malting Barley Endorsement

The Malting Barley Endorsement (MBE) utilizes a Chicago Board of Trade (CBOT) soft red wheat price component to derive the 2018 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/policies/2018/18-0091b.pdf.

Malt Barley Type
 Exchange Contract Projected Price Component
 Volatility Factor
 Fall Planted Type
 CBOT September SRW Wheat
 $5.02/bushel 0.18
         
Margin Protection Plan and Margin Protection Plan with Harvest Price Option*

The following 2018 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: webapp.rma.usda.gov/apps/actuarialinformationbrowser/. Please see the following web page on RMA’s public website for program details: Margin Protection for Corn, Rice, Soybeans, and Wheat.

Crop/State(s)/Type
Exchange
Contract
Margin Projected Price
Volatility Factor
Corn – Grain Type
All Insured States		 CBOT December
Corn		 $3.97/bushel 0.18
Soybeans
All Insured States		 CBOT November
Soybeans		 $9.66/bushel 0.16
Wheat – Hard Red Spring Type
Minnesota, Montana,
North Dakota & South Dakota		 MGE
September
HRS Wheat		 $6.30/bushel 0.30
*Corn for silage yields are set equal to corn for grain yields and are measured in bu/acre. Preliminary yields were updated on 9/14/17 on the marginprotection.com price discovery website.

DISPOSAL DATE
December 31, 2017
USDA is an Equal Opportunity Employer and Provider

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