Crop Insurance Corn and Bean Spring Prices Good News?
So far spring crop insurance prices are looking much better for corn and beans than the last few years. Remember spring crop insurance prices are set in February. For corn it is the average of December corn futures on the CME during the month of February. For soybeans it is the average of November bean futures on the CME during February. One half way through the month our average prices are much higher than the last few years.
Last year the spring price for corn was $3.88 a bushel. This year so far the spring price is $4.51. A year ago the spring price for beans was $9.17 a bushel and this year much higher at $11.65 a bushel. Granted we have half the month of February yet but we have 10 days with a good average going our way! Each day that goes by it will take even lower prices to have a big impact on the average!
The only problem with higher spring prices is the cost of crop insurance will be higher because you are buying more insurance or dollars per acre in coverage. That is a nice problem to have! I am quite certain ag lenders will be pleased with farmers having that problem too!
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