Protect Your Revenue
Feb 15, 2023
Price discovery is the mechanism used to establish the base and harvest price for each crop insured by Federal Crop Insurance. Price discovery periods happen two times a year for each crop and usually last 30 days. For wheat, the 30 day period is August 15 - September 15. For corn, soybeans, milo and cotton, the price discovery period is the month of February. Price discovery also happens during harvest, for wheat it is the month of June and for spring-planted crops the month of October.
On the last day during the price discovery period, the futures price is recorded for each crop and then averaged together. For wheat, the July futures are used for both periods, corn and milo use the December corn futures for both periods, and soybeans use the November futures for both periods. Once the base price discovery period is complete, premiums, revenue protections, and crop guarantees can be binded to each producer policy at sales closing. Once harvest is completed and the harvest price discovery period has commenced, any potential insurance claims can be finalized. Both periods are vital to the effectiveness of sound risk management.
Below is a historical chart of the area’s major crops. Listed is both the base and harvest prices. For 2023 the base price for wheat is established, but corn and soybeans are estimated from current futures prices.
The last two years we have seen historically higher prices for our major crops. With the higher established prices producers have a great opportunity to lock in profits and protect their revenues. With the protection crop insurance provides we can help our producers weather the volatile input prices as we navigate into the 2023 growing season.
On the last day during the price discovery period, the futures price is recorded for each crop and then averaged together. For wheat, the July futures are used for both periods, corn and milo use the December corn futures for both periods, and soybeans use the November futures for both periods. Once the base price discovery period is complete, premiums, revenue protections, and crop guarantees can be binded to each producer policy at sales closing. Once harvest is completed and the harvest price discovery period has commenced, any potential insurance claims can be finalized. Both periods are vital to the effectiveness of sound risk management.
Below is a historical chart of the area’s major crops. Listed is both the base and harvest prices. For 2023 the base price for wheat is established, but corn and soybeans are estimated from current futures prices.
| Wheat | Corn | Soybeans | ||||
| Year | Base | Harvest | Base | Harvest | Base | Harvest |
| 2013 | $8.78 | $7.22 | $5.65 | $4.39 | $12.87 | $12.87 |
| 2014 | $7.02 | $7.17 | $4.62 | $3.49 | $11.36 | $9.65 |
| 2015 | $6.30 | $5.31 | $4.15 | $3.83 | $9.73 | $8.91 |
| 2016 | $5.20 | $4.50 | $3.86 | $3.49 | $8.85 | $9.75 |
| 2017 | $4.59 | $4.59 | $3.97 | $3.49 | $10.19 | $9.75 |
| 2018 | $4.87 | $5.07 | $3.96 | $3.68 | $10.16 | $8.60 |
| 2019 | $5.74 | $4.63 | $4.00 | $3.90 | $9.54 | $9.25 |
| 2020 | $4.35 | $4.44 | $3.88 | $3.99 | $9.17 | $10.54 |
| 2021 | $4.90 | $6.21 | $4.58 | $5.37 | $11.87 | $12.30 |
| 2022 | $7.08 | $10.88 | $5.90 | $6.86 | $14.33 | $13.81 |
| 2023 | $8.79 | na | $5.95* | na | $13.69* | na |
The last two years we have seen historically higher prices for our major crops. With the higher established prices producers have a great opportunity to lock in profits and protect their revenues. With the protection crop insurance provides we can help our producers weather the volatile input prices as we navigate into the 2023 growing season.