Most insureds have Revenue Protection on their corn & Soybeans, which provides a revenue per acre guarantee. The projected price or spring price is set in February for September delivery. The spring price for Soybeans was $13.76 per bushel, and corn was $5.91.
To calculate the revenue per acre, you can use the formula:
APH X level of coverage X $13.76 (spring price)
For example, if your APH is 45 bushels per acre and you have 75% coverage, your revenue guarantee would be (45 bu X 75% X $13.76) = $464.40 per acre.
Now, the Fall price of soybeans has been finalized at $12.84 per bushel.
Yield X $12.84 (fall price)
Assuming your yield matches your original guarantee (45 bu X 75% X $12.84), you would have a revenue of $433.35 per acre for the fall crop.
n this following example, if your actual yield matches your guarantee, there would be a revenue loss:
=-=- $464.40 (spring revenue)
=-= -$433.35 (fall revenue)
=-– =$31.05 per acre payment
For those who use a bushel number as a trigger, you can also calculate your guarantee.
To calculate your guarantee, you can use this formula:
(APH X Level of Coverage) = Guaranteed bushels
For example, if your APH is 45 bu per acre and you have 75% coverage, your guaranteed bushel in the spring would be 33.75
Guaranteed bushels x Spring Price = Guarantee Revenue
Taking the guaranteed bushel of 33.75 x $13.76 spring price = $464.40
Guarantee Revenue ÷ Fall Price = New Bushel Guarantee
$464.40 ÷ $12.84 = ≈36.2 bu
This price decline in Soybeans guarantees you approximately 7% ($13.76/$12.84=1.071) more bushels than your spring guarantee.
Use same formulas for Corn using the spring and final harvest prices
Corn Spring Price $5.91
Corn Harvest Price $4.88
Please refer to the attached trigger chart to determine if you have a loss on your wheat.
Harvest Price Trigger Chart – 2023 Soybeans
Harvest Price Trigger Chart – 2023 Corn
