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Final Crop Insurance Prices Set

2/28/2013

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The spring prices have been set for the corn and soybean revenue insurance policies.  Corn will be $5.65 and soybeans are $12.87.  
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Below are the marketing floors for corn and soybeans.  It is time to plan how to market your crop.
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Price Discovery Enters Final Week

2/23/2013

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We are in the home stretch of the price discovery period for corn and soybean revenue insurance.  The charts below illustrated the latest projected guarantees.  As of the close on Friday, February 22, Corn is at 5.682 and Soybeans are @12.944.
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Below are the estimated price floors.
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NASS Releases County Yield Estimates

2/22/2013

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Here are the county yield estimates from NASS for GRIP/GRP clients.  Keep in mind that in Kentucky, payments are based on harvested acres and not planted acres.  The yields shown are for harvested acres so these figures are useful to calculate your GRIP/GRP payment.
In the counties where I have GRIP/GRP policies, this is what the crop insurance pay outs look like.  There are a lot of very large payments made on corn, against very few modest payments on soybeans.
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The corn payments will be very large this year.  Below are a couple examples of how the GRIP payments are calculated.

Hardin County Corn GRIP
with Harvest Price Option – Maximum Protection


NASS reports the actual county yield in Hardin County KY at 49.6 bu/ac and the Harvest Price at $7.51

Max  Protection Per Acre Is The Higher of Base or Harvest Price=
Base Price ($5.68) X 1.5 X County Average Yield (127.8 bu) = $1089
Harvest Price ($7.51) X 1.5 X County Average Yield (127.8 bu) = $1439

Trigger Revenue=
County Average Yield (127.8 bu) X Higher of Base Price or Harvest Price
 ($7.51) X Coverage Level (90%) = $863.80

Actual County Revenue=
49.6 bushels/acre X $7.51 Harvest Price = 372.50

Loss Payment =
Trigger ($863.8) – Actual (372.50) = $491.30
You convert it to the % below the trigger revenue (491.3/863.8)= 56.9%
56.9% X 1439(max protection) = 818.79 per acre payment

 

Hardin County Corn GRIP
with Harvest Price Option – Minimum Protection


This is the same example as above, without the 1.5% multiplier.

Max  Protection Per Acre Is The Higher of Base or Harvest Price=
Base Price ($5.68) X County Average Yield (127.8 bu) = $726
Harvest Price ($7.51) X County Average Yield (127.8 bu) = $960

Trigger Revenue=
County Average Yield (127.8 bu) X Higher of Base Price or Harvest Price
 ($7.51) X Coverage Level (90% = $863.80

Actual County Revenue=
49.6 bushels/acre X $7.51 Harvest Price = 372.50

Loss Payment =
Trigger ($863.8) – Actual (372.50) = $491.30 per acre payment

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Discovery Period Update

2/19/2013

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We are over half way through the discovery period for corn and soybean revenue insurance.  The charts below illustrated the latest projected guarantees.  As of Tuesday, February 19, Corn is at 5.71 and Soybeans are @12.98.
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We Can Begin To See The Guarantees Coming Together

2/11/2013

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The Price Discovery Period is underway to calculate the base price for corn and soybean revenue insurance for 2013.  As of today, February 11, Corn is averaging $5.78 and Soybeans averaging $13.19.  You can see by the charts below where the guarantees would get locked in at today's price levels.
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Steve Wade and Tyler Wade of Wade Assurance are associated persons for AgDairy LLC.

                           Commodity Risk Disclosure Statement

The risk of loss in trading commodity futures contracts can be substantial.  You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

Wade Assurance is an equal opportunity insurance provider.
CONTACT US
Steve Wade
swade@wadeassurance.com
​
Tyler Wade
​twade@wadeassurance.com
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270-234-6074
  • Home
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  • Resources
    • Futures Contract Specs
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    • Terminology
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    • Crop Overview >
      • Corn
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      • Supply/Demand Factors
    • About
  • Disclaimer