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| RP harvest exclusion will not pay out better than YP if the fall price is higher! If the price is higher in the fall, like last year, and you have RPHE, you strictly have a dollars per acre guarantee. If the price is higher, it will take less bushels per acre to meet the dollars per acre trigger (guarantee), and you will be paid on less and less bushels.
Next fall, if the fall corn price = $8.00, that is a %133 price move up. As a result, I will be guaranteed my original guaranteed bushels divided by %133.
Yield plan will still guarantee 80 bushels at $6.00. so if you produce 60 bushels in the above scenario, you recieve nothing with RPHE. With Yield Plan your receive $120 per acre (20 bu X $6.00).
Example:
100 bu aph with 80% RPHE, beginning price $6.00, ending price of $8.00. My original guarantee is 80 bu X $6.00, or $480 per acre. At $8.00, I am now only guaranteed 60 bushels, or $480 divided by the fall price of $8.00 (or 80 bu original guarantee divided by the 133% upward price move, 60 bu).
Hope this helps,
Rob | |
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