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Veteran Advisor

Crop Insurance Prices For 2018

This just in! The USDA's Risk Management Agency now has its crop prices for this year's spring planting season. The final projected crop insurance prices for 2018 coverage are now in.

 

As explained by the American Farm Bureau, "Spring prices for corn, cotton and soybeans are determined by averaging the new-crop futures contract settlement prices (December for corn, November for soybeans and December for cotton) during the month-long February price discovery period. Following the spring price discovery period, farmers may purchase revenue protection policies that provide insurance against yield declines. In the event of a crop loss, a farmer purchasing a harvest price option policy would be indemnified at the higher of the spring planting price or the price during harvest. Farmers without the harvest price option would be indemnified at the spring planting price."

 

For Dec. 18 corn= $3.95 vs. $3.96 in 2017

 

For Nov. 18 soybeans=  $10.166, down 3 cents from last year.

 

What say you?

 

 

As a side note, "The soybean-to-corn spring price ratio remains at 2.57, in line with last year and well above the 20-year average of 2.25," AFB stated Thursday.

 

My comments: So, is the market trying to buy more bean acres?

 

Mike

 

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5 Replies
Honored Advisor

Re: Crop Insurance Prices For 2018

Very small but still a decrease in pay

How many in your office would take a decrease in base salary?
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Honored Advisor

Re: Crop Insurance Prices For 2018

As opposed to getting fired and not having a job, they would probably take it.   Smiley Wink

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Advisor

Re: Crop Insurance Prices For 2018

Lol, not to mention when China retaliates on these new tariffs and goes after the soybeans.
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Veteran Contributor

Re: Crop Insurance Prices For 2018

Insurance rates are a bit down too, unless you want the +5% PP coverage. I bumped from 70 to 75% this year.  Seems there are more things to worry about than just the weather this year,,, Farm Bill, low chance for ARC-CO payments this year, trade wars  all on top of drought in Argentina. Will that spread this summer like it did in 2012?  Who knows?

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Esteemed Advisor

Re: Crop Insurance Prices For 2018

It is a pretty amazing floor, for a pretty amazingly low price. YP is 

possibly the best choice for for a lot of corn/wheat folks just cause

if you grow the bushels you can survive. Beans might have a lot

more downside, so the RP stuff might be best. Never a known,

just informed gambling on picking the right choice easy year.

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