Crop insurance price guarantees might be higher than last year for corn and soybeans, according to USDA Chief Economist Seth Meyer at the Crop Insurance Convention. Meyer said the corn price guarantee could be $5.80 per bu. and soybeans could be $14.11 per bushel.
The 2021 corn insurance price was $4.58 per bushel. Between 2014 and 2021, projected prices averaged $4.06. Projected prices were near the $5.70 level in the mid-2010s: $6.01 in 2011, $5.68 in 2012, and $5.65 in 2013.
The 2021 soybean price guarantee was $11.87 per bushel. Between 2014 and 2021, projected prices averaged $9.86. In the mid-2010s, projected prices were $13.49 in 2011, $12.55 in 2012, and $12.87 in 2013.
The spring price guarantee for corn and soybeans is set by the average settlement price for the December corn futures contract and November soybean contract during February. Crop insurance premiums are set using the prices and a volatility index.
