Harvest Price Wheat Examples

The 2017 harvest prices have been announced by RMA for spring wheat and durum. The Harvest Price for spring wheat is $6.76, an increase of $1.11 (19.6%) from the Projected Price of $5.65; the Harvest Price for durum is $7.63, an increase of $1.25 (19.6%) from the Projected Price of $6.38. With the Revenue Protection (RP) plan of insurance, your coverage guarantee is automatically increased with these prices without any additional premium being charged to you. Since the Fall Harvest Prices are higher than the Spring Projected Prices, there must be a production loss in order for you to collect an indemnity for spring wheat or durum. Please see example below:

Spring Wheat Example

Initial guarantee based on the spring projected price as listed on your schedule of insurance

35 bushel APH x 75% coverage level x $5.65 = $148.31 per acre guarantee

Final guarantee based on the increased harvest price

35 bushel APH x 75% coverage level x $6.76 = $177.45 per acre guarantee

Production to count of 10 bushels per acre = $67.60 (10 bu. x $6.76)

$177.45 – $67.60 = $109.85 per acre estimated claim payment

*Example based on a 35 bushel APH with a 75% coverage level and production of 10 bushels per acre; the actual amounts will vary depending on your specific coverage level and production

 

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