The month of October is the right time to begin calculating whether you might receive an indemnity check for the 2017 crop, says Jamie Wasemiller, analyst and crop insurance agent with the Gulke Group.
“The spring price for corn that we set earlier this year was $3.96, and we’re currently at $3.50. That shows that the price is currently accounting for 12% of the deductible, depending on what the farmer took,” Wasemiller tells “Weekend Market Report” host Pam Fretwell in an episode airing Saturday, Oct. 7, 2017. “On the soybean side, the spring price was $10.19 and we’re currently at an average of about $9.62, so the price is currently accounting for about 6% of the deductible.”
Use your insurance level to begin assessing whether you will receive an indemnity check and to determine strategies for protecting revenue moving forward.
“They can kind of determine, OK, here’s what’s been used up so far of my deductible on the price side. Now I’m going to look at some of my projected yields and get a handle of where I’m at,” Wasemiller says. “Once I start plugging those in, I can give myself an idea of do I think I have an insurance indemnity check coming? Or are my bushels too much higher than my APH to where the price is not going to negate that enough to get me an insurance claim?
He continues: “If I do start having that insurance indemnity possibility, I could look at trying to protect some of that on the board. Again, remember this is an average for the month of October. So once we get past about the second week in October or into the beginning of the third week of October, the prices on a daily basis aren’t going to change on average very much. So in theory, in about another week or six or seven more trading days, we’ll have an idea of what that harvest price is going to be for corn and soybeans.”
Listen to the full audio report above as Wasemiller shares an overview of what to expect from USDA’s Oct. 12 reports.