KEY CROP INSURANCE DATES

July 1, 2021

Premium Billing Date

Winter Wheat

July 15, 2021

Acreage Report Deadline

Corn, Soybeans, & Spring Wheat

August 15, 2021

Premium Billing Date

Corn, Soybeans, Spring Wheat, &
Winter Wheat & Spring Wheat on Same Policy – NE, SD 

August 20, 2021

Harvest Price Announced

Winter Wheat

Trigger Yield Calculator

Trigger yields assist producers with crop insurance and risk management decisions. Understanding what will trigger loss payments is an important part of choosing the correct level of crop insurance coverage.

The results provided by this tool are for estimation purposes only; actual loss triggers may vary. Contact your Farm Credit Services of America insurance officer for more information.

Crop Insurance Podcasts

Members of our experienced crop insurance team discuss how crop insurance and marketing goals can work together to provide the best financial return. Listen to our audio programs to learn more.

VIEW CONTENT

CORN AND SOYBEAN MOISTURE ADJUSTMENT FACTORS

Moisture adjustment is applied prior to applying any qualifying quality adjustment factors such as test weight, kernel damage, etc.

With the Revenue Protection plan, a price guarantee is set in both the spring (Projected) and fall (Harvest). Your final Revenue Guarantee is based on the higher of the spring or fall price. See how prices change from the time they are set before planting until harvest with our price history chart.

Projected Corn Price History
Year Price
'11 6.01
'12 5.68
'13 5.65
'14 4.62
'15 4.15
'16 3.86
'17 3.96
'18 3.96
'19 4.00
'20 3.88
Harvested Corn Price History
Year Price
'11 6.32
'12 7.50
'13 4.39
'14 3.49
'15 3.83
'16 3.49
'17 3.49
'18 3.68
'19 3.90
'20 3.99
Projected Soybean Price History
Year Price
'11 13.49
'12 12.55
'13 12.87
'14 11.36
'15 9.73
'16 8.85
'17 10.19
'18 10.16
'19 9.54
'20 9.17
Harvested Soybean Price History
Year Price
'11 12.14
'12 15.39
'13 12.87
'14 9.65
'15 8.91
'16 9.75
'17 9.75
'18 8.60
'19 9.25
'20 10.55
Projected Winter Wheat Price History
Year Price
'11 7.15
'12 8.70
'13 8.79
'14 7.11
'15 6.41
'16 5.34
'17 4.74
'18 5.06
'19 5.84
'20 4.35
Harvested Winter Wheat Price History
Year Price
'11 7.57
'12 8.70
'13 6.99
'14 6.43
'15 5.43
'16 4.15
'17 5.06
'18 5.14
'19 4.40
'20 4.44

Calculation Periods

Find the commodity exchange price calculation periods for various crops.

Corn

Corn

  • Commodity Exchange: Chicago Board of Trade (CBOT)
  • Contract Month: December
  • Projected Price: February average daily settlement price
  • Harvest Price: October average daily settlement price
Soybeans

Soybeans

  • Commodity Exchange: CBOT
  • Contract Month: November
  • Projected Price: February average daily settlement price
  • Harvest Price: October average daily settlement price

CROP INSURANCE ABBREVIATIONS

Find common abbreviations and acronyms used to describe crop insurance plans and details.
  • Abbrev. Term
  • AF Annual Forage
  • AIP Approved Insurance Provider
  • APH Actual Production History
  • APHTH Actual Production History Transfer History
  • AR Acreage Report
  • ARD Acreage Reporting Date
  • ARPI Area Risk Protection Insurance
  • BFR Beginning Farmer and Rancher
  • BP Common Crop Insurance Policy Basic Provisions
  • BU Basic Unit

Crop Insurance Information

Make the Most of your Revenue Insurance

Revenue insurance isn’t just about growing a crop, it’s about selling a crop.

If you aren’t taking advantage of the peace of mind Revenue Protection (RP) affords for forward pricing, you may be leaving money on the table. In the current price environment, pennies, nickels and dimes can mean the difference between a financially successful year and one that burns equity.

Most years, prices rally on production uncertainty during the growing season, as illustrated by the corn chart below. On average, the best pricing opportunities (green-shaded area) for corn and soybeans are seen during the growing season.

monthly average december corn futures

There are many ways to look at crop pricing opportunities but our purpose here is not to address when to market your crop. We’ll discuss seasonal probabilities just enough to set the stage for a discussion of the possible benefits crop insurance can bring to the marketing table.

The chart above shows the 10-year monthly average closing price for December corn futures. As you can see, July has offered the highest average price, followed by the months on either side. Once the crop is made and harvest is coming, prices have averaged about 20¢ less.

What averages don’t show the swings between highs and lows. During this 10-year period, the price difference between high and low average monthly closes in a given year ranged from 83¢ to $3.50/bu.

This is not to imply farmers should try to hit the high with sales. It just points out that you have better odds of above average prices by pricing at least part of your crop on growing season uncertainties than once the crop is made. June, July and August each had the highest average twice in the 10 years, while January, April, May and December were highest one year each. On the other hand, September, October and November never had the highest price average. They each did have the lowest price average several times, however: September, three times, October, once and November, twice.

Also notice that although February wasn’t the highest price month in any year, crop insurance guarantees perform quite well, on average.

How Revenue Insurance Helps

The risk of forward pricing before the crop is harvested in order to capture seasonal price strength is failing to grow enough bushels and being forced to buy replacement bushels to fill the contract – possibly at a higher price.

Here’s how to integrate your revenue insurance and your marketing plan. First, calculate your insured bushels and expected uninsured bushels. For instance, if your APH is 170 bu. and you buy 80% coverage, 136 bu. are covered; 34 bu. are not. Perhaps expected yield is higher than your APH, adding to noninsured bushels. On seasonal price strength, you might hedge or forward contract the 136 bu.

To protect the price on the uninsured bushels, you might consider buying put options because options don’t have any delivery risk. If prices rise, the option simply expires worthless. If they fall, you can either sell the option or exercise it and add the profit to your cash price.

Given RP’s fall price adjustment, in a year when a weather event causes a shortfall and prices rise, your indemnity payment helps cover your contract responsibilities. Suppose a late-season drought dings corn yield but soybean yields plummet; corn price doesn’t respond but soybean price jumps $5/bu. during the fall price discovery period. This is a simplified example that doesn’t consider basis. It is not meant to portray price outlook, nor does it discuss every possible price outcome. It is just meant to illustrate the connection between crop insurance and advance sales.

In the current economic environment, having the right crop insurance is the first step. Knowing your cost of production and formulating a marketing plan is the second. Understanding how the two to work together is critical.

 

YOU MIGHT BE
INTERESTED IN

Oct 19, 2013 | The Business of Agriculture

Welcome to Common Ground

Welcome to our Common Ground blog, a new channel for Farm Credit Services of America to share information and insight about topics that impact agriculture.

Feb 18, 2014 | The Business of Agriculture

Educational Tool Teaches FFA Students Smart Risk Management

Wise farmers like to pose a question that goes to the importance of risk management: Would you rather be lucky or smart? For national FFA week, we look at how agriculture educators and FFA chapters give aspiring producers the right answer.

Mar 26, 2014 | The Business of Agriculture

Learning to Manage the Risk of PED

Most of the pork producers we work with anticipate good profits in 2014. But the PED virus weighs heavily on the industry. It’s a risk that producers will have to learn to manage.

Ready to Talk?

Contact us if you have questions or need more information. Fill out the form, or connect with your local office using the Office Locator.

FCSAmerica serves farmers, ranchers, agribusinesses and rural residents in Iowa, Nebraska, South Dakota and Wyoming. For inquiries outside this geography, use the Farm Credit Association Locator  to contact your local office.