Crop prices are low and the prices won’t likely move much in 2018.
With profit margins tight for corn and soybeans in 2017, some producers only saw breakeven prices for corn.
Farm Management Analyst Kent Thiesse says the big supply of crops makes it hard for movement to take place on prices.
“You know we have seen a little short-term increase here, especially in soybean prices. But even corn prices. But again, it hasn’t been a huge move.”
Given the tight margins, Thiesse is cautioning farmers who are considering a reduction in crop insurance coverage.
“I think we’ve had two or three pretty good years in a row as far as yields and crop insurance payments, as a whole in the Midwest, have been up and down the last two or three years. So there gets to be kind of a tendency, well maybe I can get by without that insurance. But, I think you also gotta look at the fact that what happens if we do get reduced yields. That kind of thing can really put a hurt on a farm financial situation if you don’t have adequate insurance.”
The deadline to purchase insurance for the 2018 crop year is March 15.