Spring crop insurance prices set in the US

Published 2023년 2월 28일

Tridge summary

Spring reference prices for crop insurance have been set at $5.91 per bushel of corn, $13.76 per bushel of soybeans, and $8.87 per bushel of spring wheat. These prices, which are used in revenue protection crop insurance policies, are lower than last year for corn and soybeans, and the same for spring wheat. Despite the lower estimates, farmers are encouraged to plant as the insurance provides strong coverage and can trigger payments due to lower prices, lower yields, or a combination of both. Crop insurance allows farmers to insure up to 85% of the estimated revenue, with most choosing to purchase 75%, 80%, or 85% coverage.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

OMAHA (DTN) -- Spring reference prices for crop insurance were set at $5.91 per bushel of corn, $13.76 per bushel of soybeans and $8.87 per bushel of spring wheat, as the market closed on Tuesday, Feb. 28. The prices are an essential component of revenue protection crop insurance policies, the most popular subsidized insurance option among U.S. farmers. The spring reference prices are computed by averaging the daily closing price of the December corn, November soybean and September spring wheat contracts throughout February. Those numbers are combined with the farm's actual production history (APH) to determine a level of revenue to establish the crop insurance guarantee. Farmers can elect to insure up to 85% of that revenue, with most choosing to purchase 75%, 80% or 85% depending on what the premiums are in their area. The spring reference price for corn is almost the same as last year's $5.90 per bushel, but the soybean estimate is more than $1 lower than last year's ...

Source: Dtnpf