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.
Estimated revenue insurance Harvest Price for Wheat2,
for States with Sales Closing 9/30
Daily
Daily
Daily
Daily
Closing
Closing
Closing
Closing
Price
Price
Price
Price
KCBOT
CBOT
KCBOT
CBOT
July 05
July 05
July 05
July 05
Date
Wheat
Wheat
Date
Wheat
Wheat
07/01/25
3.2950
3.2425
07/11/25
3.3200
3.2700
07/05/25
3.4050
3.3700
07/12/25
3.2900
3.2375
07/06/25
3.3550
3.3200
07/13/25
3.3500
3.3200
07/07/25
3.3750
3.3475
07/14/25
3.4100
3.3800
07/08/25
3.2850
3.2850
Avg Harvest
KC Wheat
Chicago Wheat
Price
$3.343
$3.308
Plant Price
$3.56
$3.40
Price Change
($0.22)
($0.09)
% change
(-6.10%)
(-2.71%)
Increase in Trigger Yield1
106.5%
102.8%
1
In years when prices fall, it requires a smaller yield loss to trigger
revenue insurance claims. For example the trigger yield for a Wheat
grower with a 50 bushel APH times 70% coverage is 35 bushels based on
the planting price of $3.56. Based on today's lower harvest price this
same Wheat grower will have a claim if yields are below 37.3 bushels or
106.5% of the minimum trigger yield of 35 bushels. Wheat growers may
calculate their trigger yield by multiplying 106.5% 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
Because of lower prices, RA with or without the Harvest Price Option
will pay the same this year. CRC uses the June average closing July
wheat prices to settle claims.
An Example Kansas Revenue Assurance (RA) Wheat Claim. A Kansas Wheat
grower with a 50 bushels APH X 70% coverage X higher of harvest, plant
price of $3.56 would have had a revenue guarantee of $124.60. If this
grower produced 15 bushels, then based on today's price of $3.34 the
revenue to count would be $50.10 and the indemnity payment would be the
difference between the revenue to count and the revenue guarantee for
gross indemnity payment of $74.50 (before premium deduction).
