As the harvest season begins or approaches, it’s time to plan for your 2025 winter wheat crop. The 2025 wheat projected price has been officially set at $6.06 per bushel, slightly down from $6.72 last year. Understanding what this means for your operation can help you make informed decisions about your crop insurance coverage.
What Does the 2025 Wheat Projected Price Mean for Your Farm?
The projected price is determined in the fall (August 14 – September 14) and serves as the key benchmark for Revenue Protection (RP) coverage. This price protects your farm from income loss due to unexpected yield declines or market price drops. Here’s how it impacts your coverage:
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Revenue Guarantees: Your revenue guarantee is calculated based on your Actual Production History (APH) and the projected price. For the 2025 wheat crop, the guarantee will be set using the $6.06 price.
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Price Decline Impact: While the 2025 wheat projected price is lower than last year, it still provides solid protection. Even if wheat prices drop further at harvest next summer, your crop insurance policy will help safeguard your income. However, if yields are high, there may still be areas that could out-yield a price decline.
Now is the Time to Review Your Wheat Insurance Coverage
With the projected price for wheat set, now is the ideal time to review your 2025 wheat insurance coverage. You can adjust coverage levels, add new acreage, or explore additional endorsements like the Enhanced Coverage Option (ECO). Being proactive in reviewing your coverage will ensure you’re ready to protect your farm for the coming season.
Example: How the 2025 Wheat Projected Price Affects Revenue Protection
Let’s look at an example. Suppose you have an APH of 70 bushels per acre and choose to cover 80% of your production. Here’s how the projected price affects your Revenue Protection Guarantee:
- Revenue Guarantee = 80% of APH × Projected Price
= 0.80 × 70 bushels × $6.06
= $339.36 per acre guarentee
This revenue guarantee provides a financial safety net, ensuring that if your actual revenue falls below $339.36 per acre due to low yields or market price drops, your insurance will help cover the shortfall.
Need Assistance? We’re Here to Help!
At Lund and Smith Insurance Services, we’re dedicated to helping wheat farmers navigate changes in the 2025 wheat projected price and adjust their crop insurance accordingly. With the projected price now set, it’s a great time to review your policies before the September 30th, 2024 deadline. Don’t wait—ensure your farm is fully protected for the upcoming season.
Contact us today to review your coverage options and secure the best protection for your farm.
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