The survey periods for corn and soybeans have ended and Agricorp has set the 2013 floating claim prices for Production Insurance. Floating claim prices are set at harvest to compensate farmers with the at-harvest market price needed to replace their production shortfall. By contrast, 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 floating option, which usually produces a higher claim price at harvest. This year however, lower market prices for corn have resulted in a floating claim price that is less than the fixed.
For 2013, customers who are in a claim position will be compensated at the following prices:
| Crop | Float claim price
($/bu.) | Fixed claim price
($/bu.) |
| Corn | $4.10 | $5.36 |
| Soybeans | $12.78 | $11.14 |
The floating claim price for corn, set annually between October 21 and November 10, is determined as follows:
- Take the difference between the Chatham track price and the Chatham board price
- Add the Hensall board price.
- Subtract $0.20 per bushel for non-incurred expenses (like drying).
The floating claim prices for soybeans, set annually between October 1 and October 21, is the average Chatham elevator track price for conventional soybeans, plus:
- $1.50 per bushel to the floating price for the tofu option.
- $2.99 per bushel to the floating price for the natto option.
