IDEAS home Printed from https://ideas.repec.org/a/ags/illufd/358461.html
   My bibliography  Save this article

Weekly Farm Economics: Revenue Insurance Payment Scenarios for Corn and Soybeans in 2024

Author

Listed:
  • Paulson, Nick
  • Schnitkey, Gary
  • Zulauf, Carl

Abstract

A recent farmdoc daily article discussed the increasing pessimism surrounding corn and soybean return prospects for the current 2024 crop year (see farmdoc daily, July 30, 2024). This is mainly driven by continued declines in corn and soybean prices as growing conditions through July across the US suggest good to excellent crop yields, on average. Today’s article examines potential revenue insurance payments for corn and soybeans for a range of prices and yields around current expectations. Price declines thus far would not trigger payments from individual products like RP and RP-HPE at even their highest coverage level unless small yield losses also occur. Payments would however be triggered for the supplemental plans, SCO and ECO, if county yields equal, or come in below, expected levels. Given the lower revenue guarantees for 2024 compared with 2022 and 2023 because of lower prices, downside return risk is higher even for farms with revenue insurance at high coverage levels.

Suggested Citation

  • Paulson, Nick & Schnitkey, Gary & Zulauf, Carl, 2025. "Weekly Farm Economics: Revenue Insurance Payment Scenarios for Corn and Soybeans in 2024," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 14(145).
    • Handle: RePEc:ags:illufd:358461
    DOI: 10.22004/ag.econ.358461
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/358461/files/fdd080624.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.358461?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:illufd:358461. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dauiuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.