With February price discovery over, farmers are facing crop insurance guarantees below the cost of production.
USDA’s Risk Management Agency still has to release the official figures, but based on the futures prices for December corn, November soybeans, and September hard red spring wheat during February, analysts estimate that farmers will receive the following crop insurance prices:
- Corn: $3.86
- Soybeans: $8.85
- Wheat: $5.13.
Those are all lower than 2015’s projected crop insurance prices, which were $4.15 for corn, $9.73 for soybeans, and $5.85 for wheat.
Such low guarantees, combined with tightening farm economics, are causing some farmers to reconsider their crop insurance coverage in the hopes of saving money.
The deadline to purchase crop insurance for spring crops is March 15.
Crop Insurance Prices Below Production for Many