Extension Communications
3614 Administrative Services Building
Ames, Iowa 50011-3614
(515) 294-9915
3/5/01
Contacts:
William Edwards, Extension Economics, (515) 294-6161,
wedwards@iastate.edu
Elaine Edwards, Continuing Education and Communication
Services, (515) 294-5168, eedwards@iastate.edu
Crop Insurance Prices Announced
AMES, Iowa -- Prices used to calculate revenue insurance guarantees for 2001 crops have been announced. The average futures prices in February were $2.46 per bushel for corn and $4.66 per bushel for soybeans. These are based on the closing Chicago Board of Trade prices for December corn and November soybean contracts. This compares to $2.51 for corn and $5.32 for soybeans last year, according to William Edwards, Iowa State University Extension economist.
"Farmers who purchase either Crop Revenue Coverage or Revenue Assurance can choose to guarantee up to 85 percent of their expected gross revenue, based on their proven yield for each insurance unit and the corresponding futures price," said Edwards. "If their actual revenue, as determined by their actual yield and the fall futures price, is below the guarantee, they will receive a payment for the difference."
The Federal Crop Insurance Corporation indemnity prices for multiple peril yield insurance this year are $2.05 and $5.26 for corn and soybeans, respectively, slightly higher than for 2000.
Crop producers and landowners have until March 15 to contact their insurance agent if they want to change the terms of their policies from last year. Premiums for most producers will be lower than last year. The U.S. Department of Agriculture is funding a larger portion of the cost of federally approved crop insurance guarantees this year, Edwards said.
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