Perfect Storm: Recent rains reduced drought concerns but farmers likely won’t see more money

Increased rains across the Midwest helped crops and reduced changes of a 2012 drought situation, but right now it does not look like it will boost income.

Ag economists with the University of Illinois and the Ohio State University say overall, new crop pricing of corn at this point will not reduce revenue risk. Corn prices are near trigger levels for high coverage revenue protection policies. Last week, December corn settled at $4.94 per bushel, which is down 16 percent from the projected price of $5.91.

At an 85 percent coverage level, RP will trigger payments at $5.03.

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