Grain Market Viewpoint

Pricing Corn vs. Insurance

Lots of questions as of late in regards to pricing bushels with such a good Spring insurance guarantee in place.  Just remember the $5.65 Spring revenue price guarantee is NOT our floor.  Below are a few examples: Each scenario is figured off a 180 bushel aph and a revenue insurance price of $5.65. (All numbers rounded to the nearest penny.)

Producer (A) has a 180aph with 85% coverage: 180aph x 85% = 153 bushel guarantee; or 153 bushels x $5.65 revenue guarantee = $864.45 per acre. If you produce your 180 bushel aph, then $864.45 per acre divided by your 180 yield = $4.80 per bushel. Meaning prices have to go below $4.80 for you to collect a payment.  If you produce more than you aph, say 190 bushels, then you will have a $4.55 floor; produce 200 bushels and your floor is $4.32.

Producer (B) has a 180aph with 80% coverage: 180aph x 80% = 144 bushel guarantee; or 144 bushels x $5.65 revenue guarantee = $813.60 per acre. If you produce your 180 bushel aph, then $813.60 per acre divided by your 180 yield = $4.52 per bushel.  If you produce more than you aph, say 190 bushels, then you will have a $4.28 floor; produce 200 bushels and your floor is $4.07.

Producer (C) has a 180aph with 75% coverage: 180aph x 75% = 135 bushel guarantee; or 135 bushels x $5.65 revenue guarantee = $762.75 per acre. If you produce your 180 bushel aph, then $762.75 per acre divided by your 180 yield = $4.24 per bushel. If you produce more than you aph, say 190 bushels, then you will have a $4.01 floor; produce 200 bushels and your floor is $3.81.

Make sure you talk over the specifics with your crop insurance agent. I just want everyone to know and understand you do NOT have $5.65 floor in place. As you can see a lot will hinge on your total production and percent of coverage. From where I sit, if you have 85% coverage and the crop isn't looking so hot I would be apprehensive to price any additional bushels at this time. From my math I see very little additional downside risk with DEC13 prices trading at sub-$5.00 levels. On the other hand for those with less coverage and a good crop, you are looking at an entirely different scenario, and may have another $1.00 of downside exposure. Moral of the story, it might be tougher than you think to collect on this so called revenue insurance "guarantee," unless you have some serious crop failures. Don't fall asleep at the wheel thinking you are covered. Make sure you are talking over specifics with your individual advisors.

Receive my free daily report.

Discuss this Blog Entry 8

on Apr 3, 2014

I like your post. It is good to see you verbalize from the heart and clarity on this important subject can be easily observed. hormone replacement
http://consumerreportsbestadjustablebeds.snack.ws/

on Sep 7, 2014

obat herbal diabetes melitus membuat anda sembuh
Banyak sekali cara untuk dapat menuju pemulihan yakni salah satunya dengan cara minum obat herbal. Dengan obat herbal sangat aman bila dikonsumsi serta tidak ada efek samping. Obat Herbal Penyakit Diabetes saat ini memberikan jawaban sangat baik untuk menyembuhkan penyakit diabetes. Solusi Terbaik yang disarankan yakni dengan Obat diabetes alami atau lebih dikenal dengan amazon Plus yang sudah nyata terpercaya manfaat dalam menyembuhkan penyakit kencing manis. obat herbal kolesterol

on Apr 10, 2014

I would love to stop by. But, I think it might have to wait until this summer. I did not know that Serlkay had ever expanded its size. I must say that a succesful family owned business in this day and age is a very refreshing sight! As well as this is a very refreshing site!
http://www.ismemoryfoamsafe.websiteworks.com/

on Apr 10, 2014

Once I thought about things like: why such information is for free here? Because when you write a book then at least on selling a book you get a percentage. Thank you and good luck on informing people more about it!
http://www.ismemoryfoamsafe.websiteworks.com/

on May 13, 2014

Rebel Mouse The Secret Survey: What Men Desperately Want You To Know But Will Never Tell You by Michael Fiore gives you instant, online access to a complete guide to understanding men and deciphering what their words and actions really mean. Inside, Mike reveals the raw and uncensored results from a survey where he asked women..."If you had telepathy and could suddenly see into any man's mind, what's the one thing you would desperately want to know?" And he asked men..."What's the number one thing you want your wife or girlfriend to know but would never tell her?" Please visit site: https://www.rebelmouse.com/michaelfioresecretsurveyreview/ ...

on May 13, 2014

https://archive.org/details/girlfriend-activation-system-review The Girlfriend Activation System Review: How To Get A Girlfriend Step-By-StepWhat Is The Girlfriend Activation System And How Does It Help You Get A... The Girlfriend Activation System (GFAS) by Christian H. gives you high definition access to a closed-door seminar (videos, audio, and written transcripts) which reveals a step-by-step system for meeting, attracting, and dating the woman you want and ultimately turning her into your loyal, committed girlfriend. please open website https://archive.org/details/girlfriend-activation-system-review ...

on May 13, 2014

get the girl code michael fiore Get The Girl Code by Miss X (Marni Kinrys) gives you instant, online access to a private member’s area in which Marni teaches you a 3-step system for approaching, attracting, and getting any girl you want without lies, manipulations, games, or ridiculous PUA “tricks”. The principles and techniques taught in the course are based on the ideas of self-awareness, educational empathy, and skills development. To put it another way, the course teaches you 1.) how to be a desirable man, 2.) how to understand women and what women actually want, and 3.) how to develop the necessary skills and tools for approaching, creating attraction through conversation, getting her number, asking her out, escalating to kissing and sex, and ultimately dating the girl of your choice long-term if that’s what you decide you want. please click here https://www.rebelmouse.com/getthegirlcodereviews/ ...

on May 13, 2014

text the romance back A RebelMouse site for fans of relationship expert Mike Fiore. On this site, you can read reviews of Michael Fiore texts, products, books, PDF downloads, and new releases. Please click here website https://www.rebelmouse.com/michaelfiore/ ...

Post new comment
or to use your Corn and Soybean Digest ID
What's Grain Market Viewpoint?

Grain Market Viewpoint

Contributors

Kevin Van Trump

Kevin is a leading expert in Agricultural marketing and analysis, he also produces an award-winning and world-recognized daily industry Ag wire called "The Van Trump Report." With over 20...
Blog Archive

Sponsored Introduction Continue on to (or wait seconds) ×