Sunday Night Deadline for November Price Flex Insurance (Corn & Soybeans)
Nov 17, 2012
Price Flex: The following states have been approved for Price Flex; IL, IN, IA, KY, MI, NE, NC, OH, SC, TN WI. They are anticipating additional approvals to follow soon in VA, AK, CO, FL.
Price Flex is a private insurance that allows the producer the opportunity to "lock" a potentially higher revenue protection guarantee than the spring or harvest price set by the RMA for both the RP and GRIP policies. The additional months to determine the 2013 insurance price is this Nov., Dec., Jan., March, April, May, June and July (ex. The CZ13 futures price will be averaged during the above mentioned months to determine the additional monthly prices for 2013 corn insurance).
Price Flex is available for corn, cotton, soybeans, and wheat in all counties where there are either GRIP or RP offers for spring sales closing dates (January 31, February 15, February 28, and March 15). Price Flex imposes a limit on the difference in price between the highest Price Flex additional price discovery price designated and the price determined by the RMA. The limits are $1.00/bu for corn, $1.50/bu for wheat, $2.00/bu for soybeans, and $0.20/lb for cotton. Producers may choose from several options for price caps that are less than these policy limits.
The current November averages are vey enticing considering that South America is moving forward with planting and the fact the the United States will have record acres to plant either corn and/or soybeans. As a producer I would be thrilled to see the prices head back up to previous levels but I also need to consider risk managment.
The current November AVERAGE price of CZ13 is $6.25 for corn and the SX13 is $13.12 for soybeans. For comparison the current futures price for CZ13 is at $6.08 3/4 and the SX13 is $12.62 1/2.
The Deadline for the month November is Sunday, November 18th at midnight.
The remaining seven months will still be available to purchase after November 18.
Contact your agent to learn more and sign up for this insurance option or you can contact me at 707-365-0601 for a quick explanation.