The projected price for the 2027 winter wheat crop has been established at $7.54 per bushel for Revenue Protection (RP) crop insurance policies.
The projected price is used to determine the initial revenue guarantee for producers who select an RP policy. This number is generated using the average daily close of July wheat futures during August 15 – September 14. With the 2027 winter wheat projected price now set, farmers can begin evaluating their coverage options and estimating potential guarantees for the upcoming crop year.
Below is the daily closing price each day during the pricing period and how the average was generated.
What Does the $7.54 Projected Price Mean?
For producers with an RP policy, the projected price is one of the key components used to calculate the policy’s revenue guarantee. The $7.54 projected price is multiplied by the producer’s trigger (APH x Coverage Level) to establish the projected per-acre revenue guarantee.
For example, a producer with a 70-bushel approved yield and 80% RP coverage would have:
80% coverage level
Approved yield (APH): 70 bu./acre
Projected price: $7.54/bu.
70 bushel APH x 80% (coverge level)=56 bushel guarenteed
56 bushel guarentee x $7.54 (projected price)=$422.24/acre
Initial revenue guarantee: $422.24 per acre
Choosing the coverage level will be important this year. For the example above, this producer can market up to 56 bushels per acre and know the insurance policy has his back if he can’t produce that much (once its planted). We advise those who don’t have their wheat planted to sell only up to 60% of that guarantee amount in the event we have a wet fall and have to prevent planting acres of wheat.
Why the Projected Price Matters
RP coverage provides protection against both yield loss and changes in price. The projected price establishes the price component of the initial revenue guarantee, while the harvest price is determined later in 2027. If the harvest price is lower than the projected price, then you will be guaranteed more bushels to get you to the initial revenue guarantee. If the price goes higher than the guarantee goes up, and your initial yield guarantee becomes the trigger.
Start Planning for 2027
With the projected price now established, producers should begin reviewing their current coverage and considering whether their coverage level still fits their operation. Crop insurance decisions can vary significantly from farm to farm. Approved yields, coverage levels, unit structures, policy selections, and individual risk all play a role in determining the appropriate coverage.
The sales closing date for 2027 wheat will be September 30, 2026. Producers should contact their crop insurance agent before the deadline to review their options and make any necessary changes.
At Lund & Smith Insurance Services, we’re here to help you understand your crop insurance options and how the 2027 projected price could affect your coverage.
Contact your Lund & Smith crop insurance agent today to review your 2027 wheat coverage.
Crop insurance products are subject to the terms, conditions, and provisions of the applicable policy. This information is for educational purposes and is not a substitute for the policy or applicable regulations.