1.  

INFORMATIONAL MEMORANDUM: PM–18-014

United States Department of Agriculture


Farm and Foreign Agricultural Services


Risk Management Agency


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

Date

March 01, 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    3/1/2018

Subject:

2018 Crop Year (CY) Common Crop Insurance Policy and Area Risk Protection Insurance Projected Prices and Volatility Factors; Malting Barley Endorsement Projected Price Component and Volatility Factor; and Hybrid Seed Price Endorsement - Hybrid Seed Corn Prices

   Office

  • USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication
    1400 Independence Ave., SW
    Washington, DC 20250-9410
  • Phone: 866-632-9992
  • Fax: 800-877-8339
Common Crop Insurance Policy & Area Risk Protection Insurance

The 2018 CY projected prices shown below are approved for the following plans of insurance: Yield Protection, Area Yield Protection, Revenue Protection, Area Revenue Protection, Revenue Protection with Harvest Price Exclusion, and Area Revenue Protection with the Harvest Price Exclusion. The 2018 CY volatility factors shown below are approved for the following plans of insurance: Revenue Protection, Area Revenue Protection, Revenue Protection with Harvest Price Exclusion, and Area Revenue Protection with the Harvest Price Exclusion. The projected prices and volatility factors apply to policies with a March 15 sales closing date, unless otherwise indicated, and are applicable for the crops, practices, types, and states indicated below:

Crop/Practice/Type/State
Exchange
Contract
Projected Price
Volatility Factor
Barley
Kansas (Spring type)		 CBOT July
Corn		 $3.23/bushel 0.10
Barley – Organic Practice
Kansas (Spring type)		 CBOT July
Corn		 $6.90/bushel 0.10
Barley
Iowa, Nebraska,
New York (Spring type)
& Pennsylvania (Spring type)		 CBOT September
Corn		 $3.28/bushel 0.12
Barley – Organic Practice
Iowa, Nebraska,
New York (Spring type)
& Pennsylvania (Spring type)		 CBOT September
Corn		 $7.00/bushel 0.12
Barley
California (Spring types),
Colorado (Spring types),
Idaho (Spring types), Maine, Michigan, Minnesota, Montana, Nevada, North Dakota, Oregon (Spring types), South Dakota, Utah, Vermont, Washington (Spring types), Wisconsin & Wyoming		 CBOT September
Corn		 $3.28/bushel 0.14
Barley – Organic Practice
California (Spring types),
Colorado (Spring types),
Idaho (Spring types), Maine, Michigan, Minnesota, Montana, Nevada, North Dakota, Oregon (Spring types), South Dakota, Utah, Vermont, Washington (Spring types), Wisconsin & Wyoming		 CBOT September
Corn		 $7.00/bushel 0.14
Barley
Alaska		 CBOT December
Corn		 $5.08/bushel 0.14
Barley – Organic Practice
Alaska		 CBOT December
Corn		 $10.84/bushel 0.14
Barley
(March 15 Sales Closing Date, Winter Types without Winter Coverage Endorsement)
California, Idaho, Oregon
& Washington
(previously released 9/15/2017)		 CBOT September
Corn		 $3.29/bushel 0.18
Barley
(September 30 Sales Closing Date, Spring Type)
Kansas		 CBOT July
Corn		 $3.23/bushel 0.10
Barley – Organic Practice
(September 30 Sales Closing Date, Spring Type)
Kansas		 CBOT July
Corn		 $6.90/bushel 0.10
Barley
(September 30 Sales Closing Date, Spring Types)
New York & Pennsylvania		 CBOT September
Corn		 $3.28/bushel 0.12
Barley – Organic Practice
(September 30 Sales Closing Date, Spring Types)
New York & Pennsylvania		 CBOT September
Corn		 $7.00/bushel 0.12
Barley
(September 30 Sales Closing Date, Spring Types)
California, Colorado, Idaho, Oregon
& Washington		 CBOT September
Corn		 $3.28/bushel 0.14
Barley – Organic Practice
(September 30 Sales Closing Date, Spring Types)
California, Colorado, Idaho, Oregon
& Washington		 CBOT September
Corn		 $7.00/bushel 0.14
Barley
(October 31 Sales Closing Date, Spring Types)
Nevada & Utah		 CBOT September
Corn		 $3.28/bushel 0.14
Barley – Organic Practice
(October 31 Sales Closing Date, Spring Types)
Nevada & Utah		 CBOT September
Corn		 $7.00/bushel 0.14
Canola
All States		 ICE November
Canola		 $0.184/pound 0.08
Canola - Rapeseed Type
All States		 ICE November
Canola		 $0.264/pound 0.00
Canola
(August 31 Sales Closing Date,
Spring Type(s))
Idaho, Oregon & Washington		 ICE November
Canola		 $0.184/pound 0.08
Canola - Rapeseed Type
(August 31 Sales Closing Date,
Spring Type(s))
Idaho, Oregon & Washington		 ICE November
Canola		 $0.264/pound 0.00
Corn
Oklahoma & Texas		 CBOT December
Corn		 $3.96/bushel 0.14
Corn - Organic Practice
Oklahoma & Texas		 CBOT December
Corn		 $9.07/bushel 0.14
Corn
Colorado, Connecticut, Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York,
North Dakota, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia, Wisconsin & Wyoming		 CBOT December
Corn		 $3.96/bushel 0.15
Corn - Organic Practice
Colorado, Connecticut, Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia, Wisconsin & Wyoming		 CBOT December
Corn		 $9.07/bushel 0.15
Corn
Idaho, Michigan, Oregon
& Washington		 CBOT December
Corn		 $3.96/bushel 0.16
Corn - Organic Practice
Idaho, Michigan, Oregon
& Washington		 CBOT December
Corn		 $9.07/bushel 0.16
Corn – High Amylose Type
Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska & South Dakota		 CBOT December
Corn		 $5.54/bushel 0.15
Cotton
Missouri, Tennessee, Texas
& Virginia		 ICE December
Cotton		 $0.76/pound 0.14
Cotton - Organic Practice
Missouri, Tennessee, Texas
& Virginia		 ICE December
Cotton		 $1.16/pound 0.14
Cotton
Kansas, New Mexico & Oklahoma		 ICE December
Cotton		 $0.76/pound 0.15
Cotton - Organic Practice
Kansas, New Mexico & Oklahoma		 ICE December
Cotton		 $1.16/pound 0.15
Grain Sorghum
Texas		 CBOT December
Corn		 $3.83/bushel 0.14
Grain Sorghum – Organic Practice
Texas		 CBOT December
Corn		 $8.26/bushel 0.14
Grain Sorghum
All States, except Texas		 CBOT December
Corn		 $3.83/bushel 0.15
Grain Sorghum – Organic Practice
All States, except Texas		 CBOT December
Corn		 $8.26/bushel 0.15
Peanuts - Runner Type
New Mexico, Oklahoma, Texas
& Virginia		 CBOT/ICE December Wheat, Cotton, Soybean Oil & Soybean Meal $0.2035/pound 0.13
Peanuts - Spanish Type
New Mexico, Oklahoma & Texas		 CBOT/ICE December Wheat, Cotton, Soybean Oil & Soybean Meal $0.2666/pound 0.13
Peanuts - Valencia Type
New Mexico, Oklahoma & Texas		 CBOT/ICE December Wheat, Cotton, Soybean Oil & Soybean Meal $0.2259/pound 0.13
Peanuts - Virginia Type
New Mexico, Oklahoma, Texas
& Virginia		 CBOT/ICE December Wheat, Cotton, Soybean Oil & Soybean Meal $0.2259/pound 0.13
Popcorn
Alabama
(previously released: 2/15/2018)		 CBOT September
Corn		 $0.1643/pound 0.14
Popcorn - Organic Practice
Alabama
(previously released: 2/15/2018)		 CBOT September
Corn		 $0.2365/pound 0.14
Popcorn
All States, except Alabama
& Michigan		 CBOT December
Corn		 $0.1703/pound 0.15
Popcorn - Organic Practice
All States, except Alabama
& Michigan		 CBOT December
Corn		 $0.2451/pound 0.15
Popcorn
Michigan		 CBOT December
Corn		 $0.1703/pound 0.16
Popcorn - Organic Practice
Michigan		 CBOT December
Corn		 $0.2451/pound 0.16
Soybeans
Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska,
New Jersey, New York, North Dakota, Ohio, Oregon, Pennsylvania,
South Dakota, Tennessee, Texas, Vermont, Washington & Wisconsin		 CBOT November
Soybeans		 $10.16/bushel 0.14
Soybeans - Organic Practice
Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska,
New Jersey, New York, North Dakota, Ohio, Oregon, Pennsylvania,
South Dakota, Tennessee, Texas, Vermont, Washington & Wisconsin		 CBOT November
Soybeans		 $20.49/bushel 0.14
Soybeans
Delaware, Maryland, Oklahoma, Virginia & West Virginia		 CBOT January
(2019)
Soybeans		 $10.21/bushel 0.13
Soybeans - Organic Practice
Delaware, Maryland, Oklahoma, Virginia & West Virginia		 CBOT January
(2019)
Soybeans		 $20.59/bushel 0.13
Sunflowers - Oil Type
All States		 CBOT December
Soybean Oil		 $0.175/pound 0.12
Sunflowers - Oil Type;
Organic Practice
All States		 CBOT December
Soybean Oil		 $0.313/pound 0.12
Sunflowers - Confectionary Type
All States		 CBOT December
Soybean Oil		 $0.237/pound 0.12
Wheat - All Types Except Durum
Alaska, California, Colorado, Iowa, Maine, Minnesota, Montana, Nebraska, North Dakota, Oregon (Klamath County only), South Dakota, Vermont, Wisconsin & Wyoming		 MGE September
HRS Wheat		 $6.31/bushel 0.13
Wheat - All Types Except Durum; Organic Practice
Alaska, California, Colorado, Iowa, Maine, Minnesota, Montana, Nebraska, North Dakota, Oregon (Klamath County only), South Dakota, Vermont, Wisconsin & Wyoming		 MGE September
HRS Wheat		 $13.65/bushel 0.13
Wheat - Durum Type
Montana, North Dakota & South Dakota		 MGE September
HRS Wheat		 $7.11/bushel 0.13
Wheat - Durum Type;
Organic Practice
Montana, North Dakota & South Dakota		 MGE September
HRS Wheat		 $15.39/bushel 0.13
Wheat
(September 30 Sales Closing Date,
Spring Type)
California, Colorado, Iowa, Montana (including Khorasan), Nebraska, Oregon (Klamath County only), South Dakota, Wisconsin & Wyoming		 MGE September
HRS Wheat		 $6.31/bushel 0.13
Wheat – Organic Practice
(September 30 Sales Closing Date,
Spring Type)
California, Colorado, Iowa, Montana (including Khorasan), Nebraska, Oregon (Klamath County only), South Dakota, Wisconsin & Wyoming		 MGE September
HRS Wheat		 $13.65/bushel 0.13

Malting Barley Endorsement

The Malting Barley Endorsement (MBE) utilizes a Chicago Board of Trade (CBOT) soft red wheat price component to derive the projected price for any insured whose malt barley contract provides for a premium amount above or below a base price to be determined, and the base price is not determined by the acreage reporting date. Please see the MBE for details: Policies

Malting Barley Type Exchange
Contract Projected Price
Volatility
Factor
Spring Planted Type CBOT September
SRW Wheat		 $4.98/bushel 0.15

Hybrid Seed Price Endorsement 

The following 2018 CY hybrid seed corn prices have been approved for the Hybrid Seed Price Endorsement: $3.96 per bushel for the non-organic practice; and $9.07 per bushel for the certified organic practice.  
 
These amounts reflect the higher values of either: 1) the previously-released 2018 crop year MPCI hybrid seed corn price elections [non-organic practice: $3.95 per bushel; certified organic practice: $8.97 per bushel]; or 2) the futures-based prices derived from the average daily settlement price in February for the 2018 December CBOT corn contract [non-organic practice: $3.96 per bushel], multiplied by an organic corn price factor [certified organic practice: $9.07 per bushel].