The USDA’s Risk management Agency (RMA) has announced the 2013 crop year projected prices for corn, cotton, grain sorghum, and soybeans.
The projected or base price for the Yield Protection (YP), Revenue Protection (RP), and Revenue Protection with Harvest Price Exclusion (RPHPE) were $5.65 per bushel for corn, 83 cents per pound for cotton, $5.53 for grain sorghum, and $12.87 for soybeans.
This is applicable for states like Tennessee that have a sales closing date of March 15, 2013.
This compares to the 2012 base prices as follows: corn $5.68, cotton 93 cents, grain sorghum $5.53, and soybeans $12.55.
Also for comparison, the fall or harvest prices for 2012 policies with Revenue Protection (RP) were corn $7.50, cotton 73 cents, grain sorghum $7.31, and soybeans $15.39.
Grain prices were up in the fall of 2012 due to drought conditions mainly in the Midwest, but also felt in Tennessee.
Although the grain market may offer opportunities for pricing during the growing season, it at this time seems unlikely that 2013 prices will be higher at harvest. It would most likely take another drought similar to 2012 for prices to move higher by fall.
It could happen, but does seem unlikely.
(If a grower purchases crop insurance it’s his responsibility to live up to terms of the contract and that can sometimes be tricky. For information, visit Growers must strictly comply with crop insurance provisions).
Link to RMA bulletin — http://www.rma.usda.gov/bulletins/pm/2013/13-014.pdf.