As farmers prepared crop budgets for 2019, very few could see any profitability in soybeans, with expectations for a substantial cut in soybean acres this year. But Stu Ellis says beans have held on to their value in unexpected ways…
The bean market got a boost late last week when Chinese trade negotiators promised to buy more soybeans from the US. But how many and when is yet to be determined, so the market is watching closely.
But farmers who utilize revenue-based crop insurance policies are seeing their price guarantees holding at profitable levels, says University of Illinois farm management specialist Gary Schnitkey…
So for projected prices this year for 2019 crop insurance products, we are halfway through the month of February. We are looking at $9.55 on soybeans which is down some from last year but $9.55 is still a lot better than we might have been anticipating so $9.55 is where we are going to put our crop insurance guarantees at and that is a price that we can use.
That really insures a bit more profitability than you might have seen several months ago.
Yeah, $9.55 is a bit higher than we’ve been. You have to remember that’s a futures price and there’s a pretty wide basis now. Hopefully they will shrink up over time. Don’t know that but again but $9.55 is a pretty good price.
For Illinois and Indiana growers of white and waxy corn there is now a crop revenue insurance policy that covers your added price premium for growing a value added crop. We’ll have more about that later this week, but check with your crop insurance agent in the meantime.
That’s our report from the farm, I’m Stu Ellis with WCIA3 your local news leader.