PRODUCT MANAGEMENT BULLETIN: PM18-064




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

Date

December 11, 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    12/11/2018

Subject:

2019 Crop Year Commodity Exchange Price Provisions (CEPP) – Peanuts Factors; January 31, 2019 Sales Closing Date
Background

The CEPP - Peanuts factors necessary to establish the insured’s amount of protection under the peanut program for the 2019 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 December 15, 2018 to January 14, 2019. These factors apply only to states with a Sales Closing Date (SCD) of January 31, 2019. They are determined in accordance with the Peanut Price Methodology guidelines published and available at www.legacy.rma.usda.gov/policies/2015/15-cepp-pt.pdf.

 

Action

The factor values for peanuts in states and counties with a January 31, 2019 SCD as specified in the CEPP – Peanuts document for the 2019 crop year are shown below.

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

Commodity  Abbreviation  Value 
Wheat Ewh -0.2619
Cotton Ect 0.2442
Soybean Oil Eso 0.8929
Soybean Meal Esm -0.3232

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

Variable   Abbreviation  Value 
 Price Constant  C  0.1520
 Price Weighing Formula  W  1.7788

 
The values for the type factors are:

Type  Abbreviation Value
Runner  Tru  1.00
Spanish  Tsp  1.31
Valencia  Tva  1.05
Virginia  Tvi  1.05

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

Commodity  Abbreviation Value

Wheat

Gwh  0.1134
Cotton Gct  0.4437
Soybean Oil Gso  -0.0376
Soybean Meal Gsm  0.0032

 

The value for the volatility weighting factor is:

 Variable Abbreviation Value 
Volatility Weighting Factor   2.8265

 

DISPOSAL DATE:
December 31, 2019

Disposal Date

Until Rescinded

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