East Central South Dakota | Guaranteed bushels of 43 on soybeans actual yield of 23. November futures today is $9.73, and insurance is $11.55. Harvest basis is -.80. A bushel on the ground is worth $2.62 more than a bushel in the tank. Plus, a small fertilizer credit to next year. 20 bushels x $2.62 = $52.40/acre ground bushel advantage. Disasters pay the best when they are big. I have seen it done many times. Late October bean harvest. The unintended consequences of crop insurance. Maybe a reason trend yields are starting to go sideways. Plus, the multi-county farmers always seem to have a really bad yield in one county and the other county always surprises them with a lot better yields. Happens all the time. |
So the next question is…
