Contracts: Peanut

Overview

Special RMA reporting requirements exist when Peanut contracts are involved. The System has been designed to adhere to these guidelines in a user-friendly manner.

The RMA expanded contract pricing for Peanuts to Plans 02 and 03 for the 2018+ RYs. Prior to this, contract pricing was only available for Plan 01.

Understanding Premium Calculations for Peanuts

When contract(s) are applied to a peanut coverage, the System will apply the "CP" option to the coverage and detail lines (where applicable) and use the contract records tied to the Peanut coverage to determine what Contract Price to apply to all Peanut lines with the same County/Type. This includes a Weighted Average Projected Price (WAPP) if/when necessary.

The System will calculate a Weighted Average Contract Price when:

1.

More than 1 contract record is keyed, or

2.

One or more contract records are keyed and the total guarantee exceeds the total contracted pounds for the County and Type.

NOTE: For the 2018+ RYs, the Weighted Average Price will be capped at the maximum contract priced published in the ADM for the RY/State/County/Crop/Plan/Type.