What is your risk heading into next season?

  • Price
  • Yield
  • Input Costs

Margin Protection can help you manage these risks.

Price:

Margin Protection allows you to lock in a price during August/September prior to the crop year, instead of waiting until federal crop insurance price discovery in February. In the fall, you are beginning to plan and make purchases for the next crop season. Having a peace of mind from the start of the season is worth something… You capture time value of the market and the opportunity for price diversification.

Margin Protection can be viewed like a put option. It allows you to set a price floor and still participate in the market.

Yield:

The expected county yields are available for the 2023 season. Counties in our area increased a couple bushels per acre from last year. Corn yields are ranging from 200-226 bushels per acre and soybeans 55-65 bushels per acre.

With 95% Margin Protection, you could be locking in a revenue over $1,100 per acre on corn and $700 per acre on soybeans.

Inputs:

Margin Protection is the only insurance product that takes input cost into consideration. You can protect against increasing input costs that reduce your overall profits. In 2022, inputs increased significantly. Click here to see the 2022 change in input costs. The University of Illinois are projecting input costs to be up again in 2023, 10% on corn and 6% on soybeans.

Margin Protection helps protect your overall profit by managing the price, county yield, and input costs.

To learn more, ISU Extension published an article on Margin Protection.