Crop Insurance Payments for Corn and Soybeans Likely Small This Year

Based on current harvest price projections will require larger yield losses

Photo by James Baltz on Unsplash

The harvest price projections for most spring planted crops such as corn and soybeans is about finished. There are only three days left on the average harvest price based on the October average futures prices and the final price will not change much.

Right now, the projected corn price will likely be slightly higher than $4.20 versus the spring projected price of $4.70. Let’s assume the harvest price settles at $4.22. This results in harvest price being almost exactly 90%. Since the highest revenue protection policy is 85%, then means in order to collect any insurance indemnity at the 85% level would require a yield of about 94-95% of APH. If you are at the 80% level, it would require a final harvest yield of about 89% and so on.