Because I am also a broker, I was able to design a strategy that only cost a few cents per bushel that raised the guaranteed price floor substantially over what the crop insurance guarantees were going to be. My crop insurance customers were shown this as we discussed insurance for this year, and I wrote about it on this blog back in February. On Friday, October 27, the soybean spread expired. This is the chart from February that diagrams the strategy.
The chart below shows the actual outcome of the strategy. The area shaded in yellow depicts the above chart and the time since the strategy was created in the unshaded area to the right. The November options expired Friday with Nov Beans at $9.7675. The horizontal purple line shows where the price floor was set. The blue horizontal line shows where your crop insurance floor was if you had an 85% RP policy.
Give me a call or an email if you have any questions which I did not address in this post.