NASS Releases County Yield Estimates

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.

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