Senior Contributor
Posts: 1,259
Registered: ‎12-17-2012

Insurance Prices on 2013 corn and soybeans

I am hearing we will have a $5.80bu corn price and around $12.50 on beans for the insurance price. Has anyone heard otherwise that the prices may be higher or lower? For Iowa at a $5.80 corn price, a 210bu yield, and $12,000/acre dirt, this equals a 6% Return on Investment figure, not bad. The 50+ year average for a ROI figure is in the 4-6% range. For the 2012 crop year, I expect a 8 to 9% ROI, which is as much as 4% over the 50 year average ROI for an Iowa corn acre, not bad at all. However, a $4 corn price and a 210bu yield drops the Iowa ROI for 2013 down to 2.5%, this is around 1.5% below the 50 year average range. This will not cause a panic with current farmland owners since most landowners are in for the long-term which is unlike alot of the stock and bond market investors.