Now that floating claim prices have been set, Agricorp can begin to calculate Production Insurance payments for corn and soybean customers who are in a claim situation. Corn and soybean claims can be paid once yields are reported. Claim prices for corn and soybeans are as follows:
Float claim price|
Fixed claim price|
Floating claim prices for corn are determined by adding the difference between the Chatham track price and the Chatham board price to the Hensall board prices, which are established between October 21 and November 10, minus $0.20 per bushel allowance for non-incurred expenses (i.e., drying).
Floating claim prices for soybeans are determined using the average Chatham elevator track price (the price farmers pay for a railway car load of soybeans), which is set between October 1 and October 21. For the tofu option $1.50 per bushel is added to the floating price, and for the natto option $2.99 per bushel is added.
Fixed claim prices are set at renewal time and are based on forecasted market prices. The fixed option is a low-cost alternative to the float price. This year, floating claim prices are substantially higher than fixed claim prices, due to an increase in market prices and other factors.
Growers who participate in
Production Insurance have peace of mind knowing they are covered for their losses and are able to make informed business decisions.