Spring Crop Insurance Prices: Where Are We Headed?
As February rolls in, most of the U.S. turns its focus to setting Spring Crop Insurance prices. This year, corn is averaging $4.72, soybeans $10.57, and spring wheat $6.60. With prices set to finalize on Friday and officially posted over the weekend, let’s take a closer look at the numbers and what they mean for farmers this season.
Corn and Soybean Trends: A Historical Perspective
Corn is on track to have the third-highest spring price in the last decade—a notable figure for producers evaluating their risk management strategies. On the bright side, volatility appears to be trending lower, which could work in farmers’ favor by helping to reduce premium costs.
Soybeans, on the other hand, are projected to drop nearly a dollar from last spring’s price. However, like corn, volatility is also tracking lower, potentially easing some of the financial burden when it comes to insurance expenses.
Input Costs and Profit Margins: The Balancing Act
While reduced volatility may help lower insurance premiums, input costs remain a major concern. Seeds, fertilizers, chemicals, and other essential expenses continue to put pressure on margins, making profitability an ongoing challenge.
With margins looking tight, now is the time to review your crop insurance policy. Ensuring you have the right level of coverage is crucial—especially when Mother Nature throws a curveball. One notable update is the 21% increase in subsidies for the Enhanced Coverage Option (ECO). This area-based plan allows you to select additional shallow loss coverage of up to 95% coverage. Keep in mind that losses on this policy won’t be calculated until next June, meaning indemnities will arrive later than with a standard MPCI policy.
ARC / PLC Deadline
The Farm Bill Election deadline has been pushed back 30 days to April 15th this year. Now is the time to evaluate your options. I recommend looking at your specific counties and crops to determine which program provides the best safety net for your operation. In Kentucky, ARC has the upper hand for corn, soybeans, and wheat in the counties I’ve reviewed.
Final Thoughts
As we await the final numbers, staying proactive in risk management is key. Keep a close eye on price movements, review your coverage options, and make informed decisions to navigate the season ahead. The deadline to make changes to your policy is March 15th.
What strategies are you using to manage input costs and insurance decisions this year?
Kyle Adams
Crop Insurance Expert | Marketing Advisor, Eastern Corn Belt
With more than a decade of experience as a crop insurance agent, Kyle integrates our marketing strategies with crop insurance products to maximize both sets of tools, creating a well-rounded risk management program for our clients.
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