Date
January 31, 2022
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, 1/31/2022
Subject:
2022 Crop Year (CY) Commodity Exchange Price Provisions (CEPP) - Peanut Factors - March 15, 2022, Sales Closing Date
Background
The CEPP peanut factors necessary to establish the insured's amount of protection under the peanut program for the 2022 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, 2022 to February 28, 2022. These factors apply only to states with a Sales Closing Date (SCD) of March 15, 2022. 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 March 15, 2022 SCD as specified in the CEPP - Peanuts document for the 2022 crop year are shown below.
The values for the exponent factors for each commodity exchange futures contract are:
Commodity | Abbreviation | Value |
Wheat |
����ℎ | -0.1409 |
Cotton |
����t | 0.2955 |
Soybean Oil |
����o | 0.3980 |
Soybean Meal | ����m | -0.1064 |
The values for the price constant and price weighting factors are:
Variable | Abbreviation | Value |
Price Constant | �� | 0.1595 |
Price Weighting Factor | �� | 0.2439 |
The values for the type factors are:
Type | Abbreviation | Value |
Runner | ����u | 1.00 |
Spanish | ����p | 1.82 |
Valencia | ����a | 1.11 |
Virginia | ����i | 1.11 |
Additionally, the factor specifications for commodities utilized to determine price volatility are as follows:
Commodity | Abbreviation | Value |
Wheat | ����ℎ | -0.0648 |
Cotton | ����t | 0.4574 |
Soybean Oil | ����o | 0.1427 |
Soybean Meal | ����m | -0.0908 |
The value for the volatility weighting factor is:
Variable | Abbreviation | Value |
Volatility Weighting Factor | �� | 4.5678 |
DISPOSAL DATE:
December 31, 2022
Attachments
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Disclaimer
RMA - Risk Management Agency published this content on 31 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2022 17:11:07 UTC.
