News

Improving price guarantee another plus for crop insurance

A farm management analyst says an improving price guarantee is another reason to use crop insurance this year.

Kent Thiesse with MinnStar Bank in south-central Minnesota calls revenue protection and yield protection policies effective risk management tools and says payment levels should be better than in recent growing seasons.

“As of last Friday, the price guarantees are $10.20 per bushel for soybeans and $3.96 for corn.  That’s up about a dime over last year (for corn) and soybeans are up…I think last year we were at $8.85.  So they’re up considerably over last year.”

He tells Brownfield 85 percent coverage on 190 bushel corn would guarantee about $640 dollars per acre, and $450 dollars for 52 bushel soybeans.

“That gets you in the ballpark at least, with covering a fairly high percentage of your direct input costs and some overhead costs.  As well as if you’re at typical land rents.  If you have high land rents it probably doesn’t cover it all.”

The price guarantee for all crop insurance products, based off Chicago Board of Trade futures for December corn and November soybeans, will be finalized at the end of February.

The deadline to purchase policies for the 2017 crop year is March 15^th.