2021 Crop Year Commodity Exchange Price Provisions (CEPP) – Peanuts Factors: February 28, 2021 Sales Closing Date

PRODUCT MANAGEMENT BULLETIN: PM-021-001

Date

January 13, 2021

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 1/13/2021

Subject:

2021 Crop Year Commodity Exchange Price Provisions (CEPP) - Peanuts Factors: February 28, 2021 Sales Closing Date

Background

The CEPP - Peanuts factors necessary to establish the insured's amount of protection under the peanut program for the 2021 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 January 15, 2021 to February 14, 2021. These factors apply only to states with a Sales Closing Date (SCD) of February 28, 2021. They are determined in accordance with the Peanut Price Methodology guidelines published and available atrma.usda.gov/-/media/RMA/Policies/CEPP/2021/Commodity-Exchange-Price-Provisions---Peanuts-21-CEPP-PT.ashx

Action

The factor values for peanuts in states and counties with a February 28, 2021 SCD as specified in the CEPP - Peanuts document for the 2021 crop year are shown below.

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

Commodity	Abbreviation	Value
Wheat	����ℎ	-0.2110
Cotton	����t	0.3064
Soybean Oil	��so	0.7181
Soybean Meal	��sm	-0.1937

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

Variable	Abbreviation	Value
Price Constant	C	0.1599
Price Weighting Formula	W	0.4835

The values for the type factors are:

Type	Abbreviation	Value
Runner	Tru	1.00
Spanish	Tsp	1.63
Valencia	Tva	1.16
Virginia	Tvi	1.16

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

Commodity	Abbreviation	Value
Wheat	Gwh	0.1130
Cotton	Gct	0.5934
Soybean Oil	Gso	-0.1015
Soybean Meal	Gsm	0.1063

The value for the volatility weighting factor is:

Variable	Abbreviation	Value
Volatility Weighting Factor	V	1.6546

DISPOSAL DATE:
December 31, 2021