Many farmers were attracted to Margin Protection in 2023 due to the opportunity to lock in high prices, $6.11 on corn and $13.56 on soybeans. With reduced commodity markets in 2024, farmers may feel that Margin Protection lost it’s value. But take and look and see. Higher expected county yields, lower input costs, and lower premiums all contribute to the value of Margin Protection.

Trigger Margin Value

  • Volatility factors decreased from 2023, contributing to lower premiums: 27% less on corn and 16% less on soybeans in Hardin County.
  • Expected county yields have increased for 2024, Hardin County increased 6.2 bushels for corn and 1.8 bushels for soybeans. See 2024 Expected County Yields.
  • Expected input costs have decreased. Hardin County corn decreased $95 per acre and soybeans decreased $35 per acre.
  • Expected margin is only down $82 per acre for corn and $22 per acre for soybeans compared to 2023 when the prices were $6.11 and $13.56.
  • The value in Margin Protection has increased from 2023, if you take the Expected Margin / Margin Protection Premium.

I would recommend reviewing your 2024 cost of production. See how Margin Protection would fit into your 2024 risk management plan.

For more information about Margin Protection read the following: Manage Risk with Margin Protection and Does Margin Protection Make Sense For Me?