Clues From Crop Insurance Price Discovery


by Brent Gloy

Planting intentions for 2016 will draw considerable attention in the coming months. Crop insurance guarantees are one factor which will play into this decision. As we pointed out last year, crop insurance guarantees have fallen considerably in the past two years and barring a rally, guarantee prices are likely to be lower again this year.

At current levels, crop insurance will not guarantee revenue sufficient to cover variable costs plus land rents. The relative levels of corn and soybean prices are similar to last year and do not appear to suggest a large shift in acres from last year. Continue reading

All Eyes Turn to Crop Insurance Price Discovery Period for 2015

By Brent Gloy

As the 2014 harvest moves to completion, attention will quickly turn to 2015 planting decisions. One of the key differences between next year and those in the boom times is that the crop insurance guarantees are unlikely to be as favorable as they have been in the past. Continue reading