2012 Harvest Prices for Corn, Soybeans: Implications for Crop Insurance PaymentsNov 1, 2012
The 2012 crop insurance harvest prices will be $7.50/bu. for corn and $15.39/bu. for soybeans (as of this writing, the Risk Management Agency has not officially released these prices). These harvest prices are considerably above projected prices, with increases being large by historical standards. As illustrated, Revenue Protection (RP) and Group Risk Income Plan with the Harvest Price option (GRIP-HR) insurance policies will make large payments under low-yield scenarios.
Low yields across much of the Illinois will result in crop insurance payments. These payments will cover revenue losses caused by low yields from the drought. With the release of harvest prices, more accurate estimates of crop insurance payments can be obtained.