PM-18-047

PRODUCT MANAGEMENT BULLETIN: PM–18-047

Date

September 19, 2018

To:

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

From:

Richard Flournoy, Deputy Administrator /s/ Richard Flournoy 9/19/2018

Subject:

2018 Crop Year (CY) Common Crop Insurance Policy Harvest Prices; 2019 CY Common Crop Insurance Policy and Area Risk Protection Insurance Projected Prices and Volatility Factors; 2019 CY Malting Barley Endorsement Price Component; and 2019 CY Margin Protection Plan Projected Prices and Volatility Factors

Common Crop Insurance Policy ¹

The 2018 CY harvest prices shown below are approved for the following plans of insurance: Revenue Protection and Revenue Protection with Harvest Price Exclusion. The harvest prices are applicable for the crop, sales closing date, states and practices indicated in the following table.

Crop/Sales Closing Date/ State/Practice	Exchange	Contract	Harvest Price
Corn February 28 Sales Closing Date Arkansas & Mississippi	CBOT	December Corn	$3.65/bushel
Corn - Organic Practice February 28 Sales Closing Date Arkansas & Mississippi	CBOT	December Corn	$8.36/bushel
¹ Harvest Prices are applicable for the Supplemental Coverage Option (SCO).

Common Crop Insurance Policy & Area Risk Protection Insurance ¹

The 2019 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 - Harvest Price Exclusion. The 2019 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 - Harvest Price Exclusion. The projected prices and volatility factors are applicable for the crops, sales closing dates, states, types and practices indicated in the following table.

Crop/Sales Closing Date/ State/Type/Practice	Exchange	Contract	Projected Price	Volatility Factor
Barley September 30 Sales Closing Date Colorado (Winter types), Delaware, Georgia, Illinois, Indiana, Kansas (Winter type), Kentucky, Maryland, Missouri, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas & Virginia	CBOT	July Corn	$3.10/bushel	0.15
Barley – Organic Practice September 30 Sales Closing Date Colorado (Winter types), Delaware, Georgia, Illinois, Indiana, Kansas (Winter type), Kentucky, Maryland, Missouri, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas & Virginia	CBOT	July Corn	$6.61/bushel	0.15
Barley September 30 Sales Closing Date New York (Winter type), Pennsylvania (Winter type) & West Virginia	CBOT	September Corn	$3.10/bushel	0.16
Barley – Organic Practice September 30 Sales Closing Date New York (Winter type), Pennsylvania (Winter type) & West Virginia	CBOT	September Corn	$6.63/bushel	0.16
Barley September 30 Sales Closing Date California (Winter types), Idaho (Winter types), Oregon (Winter types) & Washington (Winter types)	CBOT	September Corn	$3.10/bushel	0.17
Barley – Organic Practice September 30 Sales Closing Date California (Winter types), Idaho (Winter types), Oregon (Winter types) & Washington (Winter types)	CBOT	September Corn	$6.63/bushel	0.17
Barley March 15 Sales Closing Date California (Winter types w/o Winter Coverage Endorsement), Idaho (Winter types w/o Winter Coverage Endorsement), Oregon (Winter types w/o Winter Coverage Endorsement) & Washington (Winter types w/o Winter Coverage Endorsement)	CBOT	September Corn	$3.10/bushel	0.17
Barley – Organic Practice March 15 Sales Closing Date California (Winter types w/o Winter Coverage Endorsement), Idaho (Winter types w/o Winter Coverage Endorsement), Oregon (Winter types w/o Winter Coverage Endorsement) & Washington (Winter types w/o Winter Coverage Endorsement)	CBOT	September Corn	$6.63/bushel	0.17
Canola - Canola Type September 30 Sales Closing Date Alabama and Georgia	ICE	July Canola	$0.180/pound	0.08
Canola - Rapeseed Type September 30 Sales Closing Date Alabama and Georgia	ICE	July Canola	$0.244/pound	0.00
Wheat September 30 Sales Closing Date Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina & Tennessee	CBOT	July SRW Wheat	$5.63/bushel	0.19
Wheat – Organic Practice September 30 Sales Closing Date Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina & Tennessee	CBOT	July SRW Wheat	$12.64/bushel	0.19
Wheat September 30 Sales Closing Date Delaware, Illinois, Indiana, Iowa (Winter), Maryland, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Virginia & West Virginia	CBOT	September SRW Wheat	$5.72/bushel	0.20
Wheat – Organic Practice September 30 Sales Closing Date Delaware, Illinois, Indiana, Iowa (Winter), Maryland, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Virginia & West Virginia	CBOT	September SRW Wheat	$12.84/bushel	0.20
Wheat September 30 Sales Closing Date Wisconsin (Winter)	CBOT	September SRW Wheat	$5.72/bushel	0.21
Wheat – Organic Practice September 30 Sales Closing Date Wisconsin (Winter)	CBOT	September SRW Wheat	$12.84/bushel	0.21
Wheat September 30 Sales Closing Date Kansas, New Mexico (Winter & Spring), Oklahoma & Texas (Winter & Spring)	KCBT	July HRW Wheat	$5.74/bushel	0.19
Wheat – Organic Practice September 30 Sales Closing Date Kansas, New Mexico (Winter & Spring), Oklahoma & Texas (Winter & Spring)	KCBT	July HRW Wheat	$12.89/bushel	0.19
Wheat September 30 Sales Closing Date Colorado (Winter), Nebraska (Winter) & South Dakota (Winter)	KCBT	September HRW Wheat	$5.84/bushel	0.19
Wheat – Organic Practice September 30 Sales Closing Date Colorado (Winter), Nebraska (Winter) & South Dakota (Winter)	KCBT	September HRW Wheat	$13.11/bushel	0.19
Wheat September 30 Sales Closing Date Montana (Winter) & Wyoming (Winter)	KCBT	September HRW Wheat	$5.84/bushel	0.20
Wheat – Organic Practice September 30 Sales Closing Date Montana (Winter) & Wyoming (Winter)	KCBT	September HRW Wheat	$13.11/bushel	0.20
Wheat September 30 Sales Closing Date California (Winter), Idaho (Winter), Oregon (Winter) & Washington (Winter)	CBOT	September SRW Wheat with PME Adjustment	$6.59/bushel	0.21
Wheat – Organic Practice September 30 Sales Closing Date California (Winter), Idaho (Winter), Oregon (Winter) & Washington (Winter)	CBOT	September SRW Wheat with PME Adjustment	$14.79/bushel	0.21
Wheat September 30 Sales Closing Date Idaho (Spring), Oregon (Spring)* & Washington (Spring) *The 2019 CY projected price for Klamath County, Oregon – Spring type will be derived at a later date, using a February 2019 projected price discovery period.	MGE	September HRS Wheat	$6.21/bushel	0.19
Wheat – Organic Practice September 30 Sales Closing Date Idaho (Spring), Oregon (Spring)* & Washington (Spring) *The 2019 CY projected price for Klamath County, Oregon – Spring type will be derived at a later date, using a February 2019 projected price discovery period.	MGE	September HRS Wheat	$13.94/bushel	0.19
Wheat October 31 Sales Closing Date Nevada (Winter) & Utah (Winter)	CBOT	September SRW Wheat with PME Adjustment	$6.59/bushel	0.21
Wheat – Organic Practice October 31 Sales Closing Date Nevada (Winter) & Utah (Winter)	CBOT	September SRW Wheat with PME Adjustment	$14.79/bushel	0.21
Wheat October 31 Sales Closing Date Nevada (Spring) & Utah (Spring)	MGE	September HRS Wheat	$6.21/bushel	0.19
Wheat – Organic Practice October 31 Sales Closing Date Nevada (Spring) & Utah (Spring)	MGE	September HRS Wheat	$13.94/bushel	0.19
Wheat – Durum Type September 30 Sales Closing Date New Mexico	MGE	July HRS Wheat	$7.32/bushel	0.18
Wheat – Durum Type Organic Practice September 30 Sales Closing Date New Mexico	MGE	July HRS Wheat	$16.43/bushel	0.18
¹ Projected Prices are applicable for the Supplemental Coverage Option (SCO).

Malting Barley Endorsement

The Malting Barley Endorsement (MBE) utilizes a Chicago Board of Trade (CBOT) soft red wheat price component to derive the 2019 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 Malting Barley Endorsement web page for details.

Malt Barley Type	Exchange	Contract	Projected Price Component	Volatility Factor
Fall Planted Type	CBOT	September SRW Wheat	$5.72/bushel	0.21

Margin Protection Plan

The following 2019 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 on RMA’s Actuarial Information Browser. Please see the Margin Protection Plan web page on RMA’s public website for program details.

Crop/States/Type	Exchange	Contract	Margin Projected Price	Volatility Factor
Corn – Grain Type* All Insured States	CBOT	December Corn	$3.95/bushel	0.17
Soybeans All Insured States	CBOT	November Soybeans	$9.02/bushel	0.15
Wheat Minnesota, Montana, North Dakota & South Dakota	MGE	September HRS Wheat	$6.21/bushel	0.19

DISPOSAL DATE
December 31, 2018

USDA is an Equal Opportunity Employer and Provider

Office

USDA RMA Room 403
6501 Beacon Drive
Kansas City, MO 64133-4675
Phone: 816-926-7914
Fax: 816-926-1803

PRODUCT MANAGEMENT BULLETIN: PM–18-047

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