Tridge summary
The article highlights the significant increase in the fall price of corn and soybeans used in crop insurance calculations, with corn reaching $6.86 per bushel, its highest since 2012, and soybeans at $14.33 per bushel, the second highest ever. This trend indicates a consecutive rise in prices at harvest. The revenue protection policies use the higher of the projected or harvest price to calculate revenue guarantees, which can benefit farmers with crop losses due to severe weather conditions. However, in areas with less severe losses, this higher harvest price could limit indemnities. The volatility in the corn market, exacerbated by the war in Ukraine, is emphasized, alongside the anticipated tight grain supplies. Despite the challenges, crop insurance is seen as providing good incentive for farmers to plant, as seen with winter wheat, whose projected prices are the highest in over 20 years.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
MT. JULIET, Tenn. (DTN) -- The fall price of corn in crop insurance calculations will be the highest since 2012 at $6.86. That's almost a dollar higher than spring's projected price and marks the third consecutive season of higher prices at harvest. On soybeans, spring's projected price of $14.33 per bushel bests the $13.81-per-acre harvest price, which is the average of the November soybean contract's closing value each day during October. For corn, the December contract is used in calculations. Revenue protection policies use the higher of the projected price or the harvest price to calculate revenue guarantees unless the farmer opted to exclude the harvest price as a way to lower premiums. Revenue guarantees are determined by multiplying the higher of the projected or harvest price by the farm's actual production history (APH) yield and the chosen coverage level, which typically ranges from 75% to 85% across the Corn Belt. DTN Lead Analyst Todd Hultman said the higher harvest ...
Source: Dtnpf
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