The harvest-time prices for corn and soybeans are significantly below the prices projected last spring, so there is a possibility of payments under crop insurance policies that assure growers of a portion of average crop revenue, said economist Gary Schnitkey of U-Illinois. However, high yields would reduce or preclude a payment, Schnitkey wrote at farmdoc daily. Payments are more likely at higher levels of coverage.
“Farmers should not assume that insurance payments will not occur just because yields are high,” he said. As an example, Schnitkey said a farm with an average corn yield of 200 bushels an acre and a policy assuring 80 percent of revenue would get a payment if yields were below 212 bushels this year. Record corn and soybean yields are forecast this year.