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Falling prices, record yields might impact crop insurance payments

An economist says many farmers might see crop insurance payments affected by falling commodity prices this year.

American Farm Bureau Economist John Newton says for the sixth straight year, the harvest price for corn was below the spring planting price and soybeans had the largest drop in harvest price since 2014, falling $1.56 a bushel.   “Because the price decline has been so large, yields that are very close or slightly below the APH (  ) could end up triggering some crop insurance payments because the farmers have experienced such steep price declines.”

But, Newton says record crop yields for many growers might reduce or eliminate crop insurance indemnities for many farmers – despite large price declines in the cash and futures markets.

Newton says producers impacted by weather should talk to their agents.  “For growers in the south, especially in the soybeans, we did have some late season rains come in and damage the crop.  For growers on the coast who may have lost a crop due to the hurricane, it’s important to visit with their crop insurance agent to figure out what their options are.”

The USDA has released the harvest prices, with corn at $3.68 a bushel, soybeans at $8.60 a bushel, and cotton at $.77 a pound.