Margin Protection is a county based crop insurance product which provides up to 95% coverage. The goal of Margin Protection is to protect against low county yields, a decline in crop prices, and an increase in variable input costs.
In 2023, yields were variable from county to county. There were low county yields due to drought conditions to better than expected county yields that received timely rainfall. Click the link to view the 2023 Final County Yields.
Margin Protection had a Projected Price of $6.11 and Harvest Price of $4.88. The decline in price was a major contributing factor for the 2023 indemnity payments provided in the chart.
Variable input costs decline in 2023. For example: In Hardin County, the expected variable input costs were $275 per acre and the final variable input costs were $196 per acre. This was nearly $80 per acre less than expected. In return, the Margin Protection losses created by the price decline was reduced by lower input costs.
Below is a chart showing the Margin Protection indemnity payments. Remember the amount paid to the farmer for Margin Protection is offset by any Revenue Protection claim that was paid. For example: If the total Margin Protection indemnity is $100 per acre and the farmer received $25 per acre payment for Revenue Protection, Margin Protection would pay $75 per acre.
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