PRODUCT MANAGEMENT BULLETIN: PM18-003




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

Date

January 16, 2018

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    1/16/2018

Subject:

2018 Crop Year (CY) Common Crop Insurance Policy and Margin Protection Projected Prices and Volatility Factors
Common Crop Insurance Policy

The 2018 CY projected prices shown below are approved for the Yield Protection, Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance. The 2018 CY volatility factors shown below are approved for the Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance. The projected prices and volatility factors apply to policies with a January 31 sales closing date and are applicable for the crops, types, practices and states indicated below:

 

Crop/Type/Practice/State  Exchange Contract Projected
Price
Volatility
Factor
 Corn
Texas
 CBOT  September
Corn
 $3.74/bu.  0.13
 Corn – Organic Practice2
Texas
 CBOT  September
Corn
 $8.56/bu.  0.13
 Cotton
Texas
 ICE  December
Cotton
 $0.74/lb.  0.14
 Cotton – Organic Practice2
Texas
 ICE  December
Cotton
 $1.14/lb.  0.14
 Grain Sorghum
Texas
 CBOT  September
Corn
 $3.62/bu.  0.13
 Grain Sorghum – Organic Practice2
Texas
 CBOT  September
Corn
 $7.80/bu.  0.13
 Peanuts – Runner Type
Texas
 CBOT/
ICE
 December
Wheat, Cotton, Soybean Oil & Soybean Meal
 $0.2010/lb.  0.17
 Peanuts – Spanish Type
Texas
 CBOT/
ICE
 December
Wheat, Cotton, Soybean Oil & Soybean Meal
 $0.2632/lb.  0.17
 Rice – Long Grain Type
Texas
 CBOT  September
Rice
 $0.117/lb.  0.13
 Rice – Medium & Short Grain Types
Texas
 CBOT  September
Rice
 $0.124/lb  0.13
 Rice – Long Grain Type;
Organic Practice
Texas
 CBOT  September
Rice
 $0.157/lb.  0.13
 Rice – Medium & Short Grain Types; Organic Practice
Texas
 CBOT  September
Rice
 $0.166/lb  0.13
 Soybeans
Texas
 CBOT  November
Soybeans
 $9.79/bu.  0.13
 Soybeans – Organic Practice
Texas
 CBOT  November
Soybeans
 Not available.3
 Sunflowers – Oil Type
Texas
 CBOT  July
Soybean Oil
 $0.178/lb  0.10
 Sunflowers – Oil Type; Organic Practice
Texas
 CBOT  July
Soybean Oil
 $0.319/lb.  0.10
 Sunflowers – Confectionary Type; All Practices
Texas
 CBOT  July
Soybean Oil
 $0.240/lb.  0.10

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

2 For the 2018 CY, organic coverage is not available in all counties covered by the January 31 sales closing date.

 

Margin Protection

The following 2018 CY margin projected prices and volatility factors are approved for the Margin Protection plan of insurance. 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 on RMA’s Actuarial Information Browser. Please see the Margin Protection Plan page for program details.

 

 Crop/Type Exchange Contract Margin Projected Price
Volatility Factor
 Rice – Long Grain Type
& No Type Specified
Texas
CBOT September
Rice
 $0.117/lb.  0.13
 Rice – Medium & Short Grain Types
Texas
 CBOT  September
Rice
 $0.124/lb.  0.13
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