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


January 29, 2018


All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties


Richard H. Flournoy, Deputy Administrator /s/ Richard H. Flournoy    1/29/2018


2018 Crop Year (CY) Commodity Exchange Price Provisions (CEPP) – Peanut Factors – March 15, 2018 Sales Closing Date
The CEPP peanut factors necessary to establish the insured’s amount of protection under the peanut program for the 2018 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, 2018 to February 28, 2018. These factors apply only to states with a Sales Closing Date (SCD) of March 15, 2018. They are determined in accordance with the Peanut Price Methodology guidelines.

The factor values for the pricing of Yield Protection (01), Revenue Protection (02), and Revenue Protection with Harvest Price Exclusion (03) for peanuts in states and counties with a March 15, 2018 SCD as specified in the CEPP for the 2018 crop year are shown below.

The values for the exponent factors for each commodity exchange futures contract are:

Commodity Abbreviation Value
Wheat 𝐸𝑤ℎ
Cotton 𝐸ct 0.3255
Soybean Oil 𝐸𝑠o 0.7505
Soybean Meal 𝐸𝑠m -0.3793

The values for the price constant and price weighting factors are:

Variable Abbreviation Value
Price Constant 𝐶 0.1614
Price Weighting Factor 𝑊 1.2818

The values for the type factors are:

Type Abbreviation Value
Runner Tru 1.00
Spanish Tsp 1.31
Valencia Tva 1.11
Virginia Tvi 1.11

Additionally, the factor specifications for commodities utilized to determine price volatility are as follows:

Commodity Abbreviation Value
Wheat Gwh -0.0304
Cotton Gct 0.5179
Soybean Oil
Gso 0.1198
Soybean Meal
Gsm -0.3501

The value for the volatility weighting factor is:

Variable Abbreviation Value
Volatility Weighting Factor
V 7.3651


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