Here is an update on 2023 Margin Protection for corn before we head into harvest.

Current Corn Overview 

Projected Price $6.11

Variable Input Costs Projected vs Harvest

The Harvest Price for interest and corn will be calculated in October. County yields will be determined next spring.

 

Since current price level is well below the Projected Price of $6.11, let’s take a look at a few scenarios. 

First, let’s estimate corn price at the current level ($4.81),

Hardin $122 Margin Protection Indemnity

 

Second, let’s estimate corn price at $5.00,

Hardin $83 Margin Protection Indemnity

 

Third, let estimate corn price at $4.60,

Hardin $165 Margin Protection Indemnity

 

Now let’s consider current price level ($4.81) and adjusting interest to current levels (11.37%), this adds $3-4 of additional indemnity payment.

Next, lets also add a subpar yield of 10% off county yield (185.7). The Margin Protection Indemnity would increase to $225 per acre.

 

Remember that Margin Protection is offset with your Revenue Protection Indemnity payment. Therefore, it would be in your favor to trend with the county or better than the county.

We will revisit 2023 Margin Protection next spring, when prices and yields are final.