Disclaimer:
This web page is designed to aid farmers with their marketing and risk
management decisions. The risk of loss in trading futures, options,
forward contracts, and hedge-to-arrive can be substantial and no warranty
is given or implied by the author or any other party. Each farmer must
consider whether such marketing strategies are appropriate for his or her
situation. This web page does not represent the views of Kansas State
University.
for States with Sales Closing 3/15 & Rice 2/15 or 2/28
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Closing
Closing
Closing
Closing
Closing
Closing
Closing
Closing
Price
Milo
Price
Price
Price
Milo
Price
Price
CBOT
Price
CBOT
CBOT
CBOT
Price
CBOT
CBOT
Dec 05
92.5% of
Nov 05
Nov 05
Dec 05
92.5%
Nov 05
Nov 05
Date
Corn
Corn
Soybeans
Rice
Date
Corn
of Corn
Soybeans
Rice
10/03/05
2.0875
1.9309
5.8100
7.2800
10/18/05
2.0200
1.8685
5.8450
7.2550
10/04/05
2.0575
1.9032
5.6250
7.3350
10/19/05
2.0175
1.8662
5.8925
7.3500
10/05/05
2.0475
1.8939
5.6350
7.3500
10/20/05
2.0275
1.8754
5.8500
7.3100
10/06/05
2.0425
1.8893
5.6425
7.3800
10/21/05
2.0150
1.8639
5.7225
7.2700
10/07/05
2.0250
1.8731
5.6425
7.4350
10/24/05
1.9950
1.8454
5.6650
7.1800
10/10/05
2.0200
1.8685
5.5550
7.3000
10/25/05
1.9950
1.8454
5.7800
7.2400
10/11/05
2.0250
1.8731
5.6350
7.2700
10/26/05
1.9825
1.8338
5.7150
7.0600
10/12/05
2.0575
1.9032
5.8900
7.3950
10/27/05
1.9775
1.8292
5.7100
7.1400
10/13/05
2.0350
1.8824
5.8825
7.4500
10/28/05
1.9700
1.8223
5.6500
7.1000
10/14/05
2.0350
1.8824
5.8950
7.3350
10/31/05
1.9625
1.8153
5.6475
7.1200
10/17/05
2.0375
1.8847
5.9125
7.4200
Avg Harvest
Corn
Milo
Beans
Rice\cents
Price
$2.021
$1.869
$5.743
7.285
Plant Price
$2.32
$2.15
$5.53
7.200
Price Change
($0.30)
($0.28)
$0.21
0.09
% change
(-12.89%)
(-13.07%)
3.85%
1.18%
Increase in Tirgger Yield1
114.8%
115.0%
100.0%
100.0%
1
In years when prices fall, it requires a smaller yield loss to trigger
revenue insurance claims. For example the trigger yield for a corn
grower with a 132 bushel APH times 70% coverage is 92.4 bushels based on
the planting price of $2.32. Based on today's lower harvest price this
same corn grower will have a claim if yields are below 106.1 bushels or
114.8% of the minimum trigger yield of 92.4 bushels. Corn growers may
calculate their trigger yield by multiplying 114.8% times their APH
times the percent insurance coverage they selected. Any yield below
this level will trigger revenue insurance claims. This does not apply
to MPCI-APH.
2
RA uses the same Harvest Prices for Soybeans as CRC but November average
for Corn.
An Example Kansas Soybean Claim. A Kansas Soybean grower with a 50
bushels APH X 70% coverage X higher of harvest, plant price of $5.53
would have had a revenue guarantee of $201.01. If this grower produced
15 bushels, then based on today's price of $5.74 the revenue to count
would be $86.10 and the indemnity payment would be the difference
between the revenue to count and the revenue guarantee for gross
indemnity payment of $114.91 (before premium deduction).
