Spring crop insurance prices expected to fall significantly

Despite the looming specter of weather extremes and a myriad of other tough challenges, like rising input costs, projections indicate a significant decline in crop insurance prices compared to previous years for key U.S. commodities.

As farmers across the United States gear up for the spring planting season, they are facing some sobering news: crop insurance prices are projected to fall significantly compared to previous years, despite anticipated weather extremes.

According to Reuters, corn prices for the upcoming season are expected to hit $4.66 per bushel, marking a stark 21-percent decrease from the previous year and the lowest seen since 2021. Similarly, soybeans are forecasted to drop by 16 percent, reaching 11.55 cents per bushel, the lowest level since 2020.

These declining prices are a growing industry concern for many in the agricultural sector, as they may not be sufficient to cover the cost of production for farmers. Progressive Farmer warns that this could leave many growers vulnerable to financial losses, especially in the face of weather-related challenges or significant declines in commodity prices.

To mitigate these risks, farmers are turning to the U.S. Department of Agriculture’s (USDA) Risk Management programs. Sign-ups for these programs, including the Dairy Margin Coverage Program, Agricultural Risk Coverage (ARC), and Price Loss Coverage (PLC), are now open, and USDA offices have been bustling with activity.

According to the Chief Program Specialist for the Farm Service Agency (FSA) in Wisconsin, farmers are actively seeking guidance and assistance at local USDA offices. Many are particularly focused on making decisions regarding dairy operations with the Dairy Margin Coverage Program. Additionally, they are addressing their needs for ARC and PLC participation.

Farmers need to note, that the deadline for enrollment in the Dairy Margin Coverage Program is April 29, followed by the deadline for ARC and PLC the following Friday.