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


January 28, 2019


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


Richard H. Flournoy, Deputy Administrator /s/ Richard H. Flournoy    1/28/2019


2019 Crop Year (CY) Commodity Exchange Price Provisions (CEPP) – Peanut Factors – March 15, 2019, Sales Closing Date
The CEPP peanut 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 February 1, 2019, to February 28, 2019. These factors apply only to states with a Sales Closing Date (SCD) of March 15, 2019 and 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, 2019, SCD as specified in the CEPP - Peanut 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  -0.2925
 Cotton  𝐸ct  0.2099
 Soybean Oil  𝐸so  0.9514
 Soybean Meal  𝐸sm  -0.3333


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

 Variable  Abbreviation  Value
 Price Constant  C  0.1510
 Price Weighting Factor  W  1.4476


The values for the type factors are:

 Type  Abbreviation  Value
 Runner  Tru  1.00
 Spanish  Tsp  1.31
 Valencia  Tva  1.07
 Virginia  Tvi  1.07


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

 Commodity  Abbreviation  Value
Wheat  𝐺𝑤ℎ  0.0551
Cotton  𝐺ct  0.4727
Soybean Oil  𝐺so  -0.0068
Soybean Meal  𝐺sm  -0.0291


The value for the volatility weighting factor is:

 Variable  Abbreviation  Value
 Volatility Weighting Factor  V  3.1717


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