Todd Davis, Extension Economist, University of Kentucky
The 2014 Farm Bill has made crop insurance the foundation of a crop farm’s safety-net. This safety-net’s projected price, which sets the minimum revenue guarantee for Revenue Protection (RP) insurance, is based on the closing prices for the November soybeans and December corn futures contract during the entire month of February. The 2015 projected price for corn and soybeans are $4.15 and $9.73 per bushel, respectively. The revenue guarantee provided by crop insurance continues to decline from the record price levels of 2011 when the projected prices for corn and soybeans were $6.01 and $13.49 per bushel, respectively.
The 2014 Farm Bill has made crop insurance the foundation of a crop farm’s safety-net. This safety-net’s projected price, which sets the minimum revenue guarantee for Revenue Protection (RP) insurance, is based on the closing prices for the November soybeans and December corn futures contract during the entire month of February. The 2015 projected price for corn and soybeans are $4.15 and $9.73 per bushel, respectively. The revenue guarantee provided by crop insurance continues to decline from the record price levels of 2011 when the projected prices for corn and soybeans were $6.01 and $13.49 per bushel, respectively.
