With the current average prices of $3.40 for corn and $9.40 for soybeans. The projected price for both crops were $4.62 and $11.36 respectively. Due to this, your MPCI revenue policy has a chance of paying out this year. This will only occur if you do not meet your total revenue guarantee, which is a combination of the yield you had and whatever the final average price ends up being.
So, if you had a 150 bushel guarantee on corn at the $4.62 price, your revenue coverage is $693 per acre. If you do not reach your 150 bushel guarantee you will have both a production loss and a revenue loss. However, if you produced 180 bushels you still would have a loss because your revenue (based off of the current average) is only $612. $693-$612= $81 per acre loss.
This example can be used to calculate your soybean coverage as well, you will just have to replace the bushel guarantee and dollar amounts. As always, please contact your trusted Crop Insurance Agent if you feel you will have a loss of any amount due to the decrease in price or your production falls short of the bushel guarantee.
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