Are new crop prices too cheap?

Each year the Spring price for crop insurance in Ohio is established by using the average close of new crop corn and bean prices through the month of February. The December futures contract is used for corn while the November futures contract is used for beans. We can use a rolling monthly average for new crop corn and beans to garner some insight into where the price for crop insurance protection might land on March 1, 2018. Right now, those prices are tracking at $3.88 and $10.00 respectively for corn and beans. From a profitability standpoint these values leave much to be desired for many operators, but they are relatively in line with what we have seen in most recent history when grain supplies are adequate. Click on the the button below to view spring prices for corn and beans from 2007 on and the entire December 2017 Newsletter.