Hot topics & tips on the ever changing business of farming

2016 MPCI Harvest Prices & Yield Triggers

Leave a comment

MPCI corn and soybean harvest prices are figured in the month of October. Corn is based on the December corn futures and soybeans use the November soybean futures. Below are the 2016 harvest prices taken from Farmers Mutual Hail’s Price Discovery Tool.

2016 Harvest Prices

Corn $3.49

Soybeans $9.75

Corn Yield Trigger

In 2016 a corn farmer with a 200 bushel per acre average production history (APH) and 85% Revenue Protection coverage, would have a claim trigger of 188 bushels per acre.

Let’s look at the calculation:

200 bu/acre APH x $3.86 Spring Projected Price x 85% coverage = $656.20 guarantee/acre

$656.20 guarantee/acre / $3.49 Harvest Price = 188 bu/acre claim trigger

Soybean Yield Trigger

In 2016 a soybean farmer with a 60 bushel per acre APH and 85% Revenue Protection coverage, would have a claim trigger of 46 bushels per acre.

Let’s look at the calculation:

60 bu/acre APH x $8.85 Spring Projected Price x 85% coverage = $451.35 guarantee/acre

$451.35 guarantee/acre / $9.75 Harvest Price = 46 bu/acre claim trigger

Claims

If the farmer’s yield is below their trigger, a claim should be filed as soon as possible. A revenue loss needs to be turned within 45 days after the harvest price is announced (approximately December 15).

 

Advertisements

Author: Betsy

I have a passion for helping farmers manage risk and increase their profitability. As an agent at Ibeling Insurance Services in Ackley, IA, I work with farmers to financially secure the future of their farm. I see agriculture as a way of life. Growing up, everyone in my family pitched in to get the job done. We worked on the farm and played on the farm. Our annual family vacation was going to the Iowa State Fair. Knowing that I wouldn't be operating the family farm in the future, I opted for finding a fit in the agricultural industry. I received a bachelors degree in Agricultural Business from Iowa State University. My career started at FCStone in West Des Moines, IA as a Commodity Broker. Each day, I worked with county elevators hedging their price risk on the Chicago Board of Trade. My husband, Levi, and I decided to move closer to home. I had the opportunity to continue working in agricultural risk management as an insurance agent. Ibeling Insurance Services is a great fit for me, as I love what I do, the people I work with, and the community I live in. In the fall, I coach high school volleyball at AGWSR Schools in Ackley. We have a team filled with delightful, talented young ladies. Levi and I have been blessed with a healthy baby boy, Alex, in December of 2013. We are enjoying parenthood, as Alex continues to amaze us!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s