PRODUCT MANAGEMENT BULLETIN: PM-21-003

Date

January 15, 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 1/15/2021

Subject:

2021 Crop Year (CY) Common Crop Insurance Policy and Margin Protection Projected Prices and Volatility Factors

Common Crop Insurance Policy1


The 2021 CYprojected pricesshown below are approved for the Yield Protection, Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance. The 2021 CYvolatility factorsshown below are approved for the Revenue Protection and Revenue Protection with Harvest Price Exclusion plans of insurance. The projected prices and volatility factors apply to policies with aJanuary 31 sales closing dateand are applicable for the crops, types, practices and states indicated below:
Crop/Type/Practice/State
Exchange
Contract
Projected
Price
Volatility
Factor
Corn
Texas
CBOT
September
Corn
$4.43/bu.
0.23
Corn - Organic Practice2
Texas
CBOT
September
Corn
$9.25/bu.
0.23
Cotton
Texas
ICE
December
Cotton
$0.75/lb.
0.17
Cotton - Organic Practice2
Texas
ICE
December
Cotton
$1.11/lb.
0.17
Grain Sorghum
Texas
CBOT
September
Corn
$4.25/bu.
0.23
Grain Sorghum - Organic Practice2
Texas
CBOT
September
Corn
$8.89/bu.
0.23
Peanuts - Runner Type
Texas
CBOT/
ICE
December
Wheat,
Cotton,
Soybean Oil
& Soybean
Meal
$0.2110/lb.
0.13
Peanuts - Spanish Type
Texas
CBOT/
ICE
December
Wheat,
Cotton,
Soybean Oil
& Soybean
Meal
$0.3439/lb.
0.13
Rice - Long Grain Type
Texas
CBOT
September
Rice
$0.120/lb.
0.15
Rice - Medium & Short Grain Types
Texas
CBOT
September
Rice
$0.146/lb.
0.15
Rice - Long Grain Type;
Organic Practice
Texas
CBOT
September
Rice
$0.161/lb.
0.15
Rice - Medium & Short Grain Types;
Organic Practice
Texas
CBOT
September
Rice
$0.196/lb.
0.15
Soybeans
Texas
CBOT
November
Soybeans
$11.17/bu.
0.18
Soybeans - Organic Practice
Texas
CBOT
November
Soybeans
Not available.3

Sunflowers - Oil Type
Texas
CBOT
July
Soybean Oil
$0.213/lb.
0.18
Sunflowers - Oil Type;
Organic Practice
Texas
CBOT
July
Soybean Oil
$0.388/lb.
0.18
Sunflowers - Confectionery Type
Texas
CBOT
July
Soybean Oil
$0.264/lb.
0.18
Sunflowers - Confectionery Type;
Organic Practice
Texas
CBOT
July
Soybean Oil
$0.388/lb.
0.18
1Projected Prices and Volatility Factors are applicable for the Enhanced Coverage Option (ECO),
the Supplemental Coverage Option (SCO) and Stacked Income Protection (STAX; cotton), where
available.
2For the 2021 CY, organic coverage is not available in all counties covered by the January 31 sales closing
date.
3For the 2021 CY, organic coverage is not available for soybeans in counties covered by the January 31
sales closing date.

Margin Protection

The following 2021 CYmargin projected pricesandvolatility factorsare approved for the Margin Protection plan of insurance. 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 the following web page on RMA's public website:
https://webapp.rma.usda.gov/apps/actuarialinformationbrowser/

Please see the following web page on RMA's public website for program details:
www.rma.usda.gov/en/Policy-and-Procedure/Insurance-Plans/Margin-Protection-for-Corn-Rice-Soybeans-and-Wheat

Crop/Type
Exchange
Contract
Margin
Projected
Price
Volatility
Factor
Rice - Long Grain Type
& No Type Specified
Texas
CBOT
September
Rice
$0.120/lb.
0.15
Rice - Medium & Short Grain Types
Texas
CBOT
September
Rice
$0.146/lb.
0.15

DISPOSAL DATE
December 31, 2021

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RMA - Risk Management Agency published this content on 15 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 January 2021 21:29:03 UTC