1.  

PRODUCT MANAGEMENT BULLETIN: PM–19-053

United States Department of Agriculture


Farm and Foreign Agricultural Services


Risk Management Agency


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

Date

September 16, 2019

To:

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

From:

Richard Flournoy, Deputy Administrator /s/ Richard Flournoy    9/16/2019

Subject:

2019 Crop Year (CY) Common Crop Insurance Policy Harvest Prices; 2020 CY Common Crop Insurance Policy and Area Risk Protection Insurance Projected Prices and Volatility Factors; 2020 CY Malting Barley Endorsement Price Component; and 2020 CY Margin Protection Plan Projected Prices and Volatility Factors

Common Crop Insurance Policy1

The 2019 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 
 $3.66/bushel 

Corn - Organic Practice
February 28 Sales Closing Date
Arkansas & Mississippi

CBOT 
 December
Corn 
 $8.43/bushel 

1 Harvest Prices are applicable for the Supplemental Coverage Option (SCO).

Common Crop Insurance Policy & Area Risk Protection Insurance1 

The 2020 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 2020 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

$3.22/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

$6.88/bushel

0.15

Barley
September 30 Sales Closing Date
New York (Winter type), Pennsylvania (Winter type) & West Virginia

CBOT

September
Corn

$3.24/bushel

0.15

Barley – Organic Practice
September 30 Sales Closing Date
New York (Winter type), Pennsylvania (Winter type) & West Virginia

CBOT

September
Corn

$6.93/bushel

0.15

Barley
September 30 Sales Closing Date
California (Winter types), Idaho (Winter types), Oregon (Winter types)  & Washington (Winter types)

CBOT

September
Corn

$3.24/bushel

0.16

Barley – Organic Practice
September 30 Sales Closing Date
California (Winter types), Idaho (Winter types), Oregon (Winter types)  & Washington (Winter types)

CBOT

September
Corn

$6.93/bushel

0.16

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

$3.24/bushel

0.16

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

$6.93/bushel

0.16

Canola - Canola Type
September 30 Sales Closing Date
Alabama and Georgia

ICE

July
Canola

$0.162/pound

0.10

Canola - Rapeseed Type
September 30 Sales Closing Date
Alabama and Georgia

ICE

July
Canola

$0.214/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

$4.86/bushel

0.16

Wheat – Organic Practice
September 30 Sales Closing Date
Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina & Tennessee  

CBOT

July
SRW
Wheat

$10.65/bushel

0.16

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

$4.94/bushel

0.17

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

$10.83/bushel

0.17

Wheat
September 30 Sales Closing Date
Wisconsin (Winter)

CBOT

September
SRW
Wheat

$4.94/bushel 

0.18

Wheat – Organic Practice
September 30 Sales Closing Date
Wisconsin (Winter)

CBOT

September
SRW
Wheat

$10.83/bushel 

0.18

Wheat
September 30 Sales Closing Date
Kansas, New Mexico (Winter & Spring), Oklahoma & Texas (Winter & Spring)

KCBT

July
HRW
Wheat

$4.35/bushel

0.17

Wheat – Organic Practice
September 30 Sales Closing Date
Kansas, New Mexico (Winter & Spring), Oklahoma & Texas (Winter & Spring)

KCBT

July
HRW
Wheat

$9.54/bushel

0.17

Wheat
September 30 Sales Closing Date
Colorado (Winter), Nebraska (Winter) & South Dakota (Winter)

KCBT

September
HRW
Wheat

$4.48/bushel

0.17

Wheat – Organic Practice
September 30 Sales Closing Date
Colorado (Winter), Nebraska (Winter) & South Dakota (Winter)

KCBT

September
HRW
Wheat

$9.82/bushel

0.17

Wheat
September 30 Sales Closing Date
Montana (Winter) & Wyoming (Winter)

KCBT

September
HRW
Wheat

$4.48/bushel

0.18

Wheat – Organic Practice
September 30 Sales Closing Date
Montana (Winter) & Wyoming (Winter)

KCBT

September
HRW
Wheat

$9.82/bushel

0.18

Wheat
September 30 Sales Closing Date
California (Winter), Idaho (Winter), Oregon (Winter) & Washington (Winter)

CBOT

September
SRW
Wheat
with PME
Adjustment

$5.73/bushel

0.18

Wheat – Organic Practice
September 30 Sales Closing Date
California (Winter), Idaho (Winter), Oregon (Winter) & Washington (Winter)

CBOT

September
SRW
Wheat
with PME
Adjustment

$12.56/bushel

0.18

Wheat
September 30 Sales Closing Date
Idaho (Spring), Oregon (Spring)* & Washington (Spring)

* The 2020 CY projected price for Klamath County, Oregon – Spring type will be derived at a later date, using a February 2020 projected price discovery period.

MGE

September
HRS
Wheat

$5.51/bushel

0.14

Wheat – Organic Practice
September 30 Sales Closing Date
Idaho (Spring), Oregon (Spring)* & Washington (Spring)

* The 2020 CY projected price for Klamath County, Oregon – Spring type will be derived at a later date, using a February 2020 projected price discovery period.

MGE

September
HRS Wheat

$12.08/bushel

0.14

Wheat
October 31 Sales Closing Date
Nevada (Winter) & Utah (Winter)

CBOT

September
SRW
Wheat
with PME
Adjustment

$5.73/bushel

0.18

Wheat – Organic Practice
October 31 Sales Closing Date
Nevada (Winter) & Utah (Winter)

CBOT

September
SRW
Wheat
with PME
Adjustment

$12.56/bushel

0.18

Wheat
October 31 Sales Closing Date
Nevada (Spring) & Utah (Spring)

MGE

September
HRS
Wheat

$5.51/bushel

0.14

Wheat – Organic Practice
October 31 Sales Closing Date
Nevada (Spring) & Utah (Spring)

MGE

September
HRS
Wheat

$12.08/bushel

0.14

Wheat – Durum Type 
September 30 Sales Closing Date
New Mexico

MGE

July
HRS
Wheat

$6.29/bushel

0.12

Wheat – Durum Type
Organic Practice
September 30 Sales Closing Date
New Mexico

MGE

July
HRS
Wheat

$13.79/bushel

0.12

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 2020 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 for details.

Malt Barley Type

Exchange

Contract

Projected Price Component

Volatility Factor

Fall Planted Type

CBOT

September
SRW
Wheat

$4.94/bushel

0.18

Margin Protection Plan

The following 2020 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 at RMA’s Actuarial Information Browser.

Please see the Margin Protection Program 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

$4.03/bushel

0.16

Soybeans
All Insured States

CBOT

November
Soybeans

$9.32/bushel

0.14

Wheat 
All Insured States

MGE

September
HRS
Wheat

$5.51/bushel

0.14

 

DISPOSAL DATE:
December 31, 2020

USDA is an Equal Opportunity Employer and Provider

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