Apr 20, 2014
Home| Tools| Events| Blogs| Discussions| Sign UpLogin

U.S. Crop-Insurance Rates Set Above Average

March 4, 2013
 
 

March 4 (Bloomberg) -- U.S. crop-insurance rates for corn, soybeans and wheat are being set higher than this year’s projected cash prices, encouraging more planting a year after a drought led to record damage payout to farmers.

Farmers in most growing regions will be guaranteed a price of $5.65 a bushel for corn, the country’s biggest crop, according to the Department of Agriculture. Soybeans will have a floor of $12.87 a bushel and spring wheat will be priced at $8.44 a bushel, the department said in a March 1 release.

The USDA, at its annual outlook forum last month, said cash prices for corn will average $4.80 in the year starting Sept. 1, soybeans will average $7.90, and all varieties of wheat $7. The projected prices are all down from the previous year as the government is forecasting a surge in production.

Lower prices after last year’s drought, the worst since the 1930s, reflect a classic supply response to shortages, Joe Glauber, the USDA’s chief economist, said on Feb. 21. As of Feb. 18, farmers had collected a record $14.7 billion in insurance payments for last year’s crops.

Farmer profit will still reach a record $128.2 billion this year as supplies are replenished, the USDA said in February.

 

--Editors: Daniel Enoch, Steve Stroth

 

To contact the reporters on this story: Alan Bjerga in Washington at abjerga@bloomberg.net.


 

See Comments

RELATED TOPICS: Corn, Soybeans, Wheat, Crops, Crop Insurance

 
Log In or Sign Up to comment

COMMENTS

No comments have been posted



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive Beef Today's Cattle Drive today!. Interested in the latest prices for cattle in your area? See highlights of the latest for-sale cattle in the Cattle-Exchange eNewsletter.

 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions