Clay SEIA - 2/28/2014 11:13 Let's say you have a 160 APH, 80% coverage, and the harvest price goes to $6.50. You are guaranteed 128 bushels x $6.50= $832. Sounds like a pretty nice gross income, certainly. But you sold 100 bpa earlier for $4.50, thinking that would be not much more than half of your crop. Until it never rains again and you end up growing only 80 bpa. Now you have 80x$4.50= $360 crop sales + a 48 bushel payout from insurance @ $6.50 totaling $312, for a grand total of $672/acre. Except that there is that 20 bpa you didn't grow and have to buy back and eat $2/bu on. Now our $672 gross per acre is whittled down to $632, and things are getting a bit skinny. 200 bucks disappeared from that $832 face value. I guess the way I look at is that when you sold the $4.50 corn you were happy with it (maybe happy isn't the right term but you sold it) later the market moved up $2 and you were no longer happy with the sale. This has absolutely nothing to do with crop insurance or the lack of producing a crop. It happens to guys that don't have insurance and it happens to guys that raise big crops as well. I also question selling 100bpa thinking it is half the crop on 160 APH ground. History says otherwise. 200 bpa on 160 ground is one heck of a jump above trendline.... Look at it this way, if you would have sold the whole 160 APH for $4.50 you'd have $720/acre. In your scenario with the 80% insurance, having sold 100 bpa and harvesting 80bpa you ended up with $632/acre. When you insured your crop you were probably only guaranteed $550-$600/acre. I'd say not too shabby for harvesting a crappy crop and being on the wrong side of the market. You can make a scenario for selling $6+ corn a year in advance (because you knew you'd be able to get insurance to cover 85% of your APH), possibly harvesting an avg to great crop and looking like a genius. Crop Ins doesn't remove 100% of the risk but it sure knocks it down a bunch. Now back to the topic of selling Nov beans. My email works if you want to discuss this more. | 
Sell a few Nov. beans for $11.45???
