By Jamie Martin
The price discovery period for 2025 crop insurance policies ended on February 28, setting the projected price for corn at $4.70 per bushel and soybeans at $10.54 per bushel.
While corn prices saw a minor increase from 2024’s $4.66, soybean prices fell significantly from $11.55. These changes will affect insurance guarantees and premiums for the upcoming planting season.
Volatility factors, which influence premium rates, have also declined slightly—0.18 for corn and 0.14 for soybeans—resulting in lower premiums for soybean policies while keeping corn insurance costs similar to last year.
Farmers opting for Revenue Protection (RP) can expect slight variations in their insurance guarantees based on these updated projections.
For a sample farm in Champaign County, Illinois, an 85% RP coverage for corn at the projected price guarantees a minimum revenue of $899 per acre. The estimated premium is $23.44 per acre for enterprise units, increasing to over $40 per acre for optional units.
Farmers looking to lower their premium costs can consider alternative policies like Revenue Protection with Harvest Price Exclusion (RPHPE) or Yield Protection (YP).
Soybean coverage follows a similar trend, with an 85% RP policy providing a $582 per acre guarantee and premium costs starting at $7.54 per acre for enterprise units. Lower coverage levels or alternative policies can reduce these costs.
The Enhanced Coverage Option (ECO), which has a newly increased subsidy rate of 65%, remains an attractive addition to standard coverage.
Farmers can use ECO and the Supplemental Coverage Option (SCO) to supplement individual policies and increase overall insurance guarantees.
As production costs remain high, these updated policies give farmers flexibility in managing financial risks. Tools like the farmdoc Crop Insurance Decision Tool help producers analyze their coverage options based on specific farm conditions.
Photo Credit: gettyimages-eugenesergeev
Categories: National