Crop Insurance 101: Price Discovery Periods
Multi-Peril Crop Insurance (MPCI) is a federal product, premium is universal between all Approved Insurance Providers (AIPs). USDA’s Risk Management Agency (RMA) recalibrates crop insurance protection based on expected commodity prices and risk in the market.
Revenue Protection (RP) policies use market prices and individual yields to calculate the revenue coverage and guarantee. The market prices used are from CME Group Inc., an American global markets company.
Spring “Projected” Price
Iowa corn and soybeans are in a price discovery period February 1st through February 28th. The Projected Price is set March 1st using the average price of each commodity in the month of February, multiplied by a volatility factor calculated using the last 5 days of February. This is combined with a farmer’s yield history to determine the level of revenue protection available during the crop year.
The price discovery period is tracking corn December CME Group futures contract prices and soybean November CME Group futures contract prices.
Fall “Harvest” Price
Those two commodities, Iowa corn and soybeans, are in a price discovery period again October 1st through October 31st. The Harvest Price for each is set November 1st using the average price in the month of October. The number of bushels needed to avoid a loss is determined based on which MPCI policy is in place.
Below is a chart of projected price and harvest price history.
| Year | Corn Projected Price | Corn Harvest Price | Soybeans Projected Price | Soybeans Harvest Price |
| 2001 | $2.46 | $2.05 | $4.67 | $4.37 |
| 2002 | $2.32 | $2.52 | $4.50 | $5.45 |
| 2003 | $2.42 | $2.37 | $5.26 | $7.32 |
| 2004 | $2.83 | $1.99 | $6.72 | $5.26 |
| 2005 | $2.32 | $1.93 | $5.53 | $5.75 |
| 2006 | $2.59 | $3.56 | $6.18 | $5.93 |
| 2007 | $4.06 | $3.82 | $8.09 | $9.75 |
| 2008 | $5.40 | $3.74 | $13.36 | $9.22 |
| 2009 | $4.04 | $3.90 | $8.80 | $9.66 |
| 2010 | $3.99 | $5.52 | $9.23 | $11.63 |
| 2011 | $6.01 | $6.32 | $13.49 | $12.14 |
| 2012 | $5.68 | $7.50 | $12.55 | $15.39 |
| 2013 | $5.65 | $4.39 | $12.87 | $12.87 |
| 2014 | $4.62 | $3.49 | $11.36 | $9.65 |
| 2015 | $4.15 | $3.83 | $9.73 | $8.91 |
| 2016 | $3.86 | $3.49 | $8.85 | $9.75 |
| 2017 | $3.97 | $3.49 | $10.19 | $9.75 |
| 2018 | $3.96 | $3.68 | $10.16 | $8.60 |
| 2019 | $4.00 | $3.90 | $9.54 | $9.25 |
| 2020 | $3.88 | $3.99 | $9.17 | $10.54 |
| 2021 | $4.58 | $5.37 | $11.87 | $12.30 |
| 2022 | $5.90 | $6.86 | $14.33 | $13.81 |
To learn more about the insurance products available for farm risk management, reach out to Chelsea Heatherington at Kingsgate Insurance.
Chelsea Heatherington, Farm & Ag Specialist
Call or Text: 515-302-8400
Email: chelsea@kingsgateins.com
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