MT. JULIET, Tenn. (DTN) — This year’s spring crop insurance guarantees are some of the highest on record, keeping pace with soaring input costs to provide a solid financial backstop in a growing season shrouded in volatility and uncertainty.
The spring crop insurance guarantee for corn is $5.90 per bushel, $1.05 higher than last year and the highest since 2011. For soybeans, the guarantee set a record at $14.33, up $2.46 from last year. Spring wheat also established a record at $9.19 per bushel, increasing 41% from last year’s guarantee.
The guarantees are an essential component of revenue protection crop insurance policies, the most popular subsidized insurance option among U.S. farmers. The spring guaranteed prices are computed by averaging the daily closing price of the December corn, November soybean and September spring wheat contracts throughout February. Those numbers are combined with the farm’s actual production history (APH) to determine a level of revenue. Farmers can elect to insure up to 85% of that revenue, with most choosing to purchase 75%, 80% or 85% depending on what the premiums are in their area.
Farmers should also expect premiums to increase along with the higher coverage levels.
Read more from our partners at DTN/Progressive Farmer here: https://www.mydtn.com/agriculture/web/ag/news/article/2022/02/28/record-spring-crop-insurance-form