Crop Insurance Commodity Base Prices for 2025 Finalized

The Price Discovery Period for crop insurance has officially wrapped up, and that has large effects on your policy—your coverage guarantees are now locked in. The final commodity prices for 2025 crop insurance have been set:

Corn: $4.70 | Volatility: 0.18

 Soybeans: $10.54 | Volatility: 0.14

Spring Wheat: $6.55 | Volatility: 0.19

Now that these numbers are in, let’s break down why they matter and how they impact your risk management decisions.

What Is the Price Discovery Period?

The Price Discovery Period is how crop insurance determines the projected price for crops. This price is calculated based on futures contracts traded throughout February (for most spring crops) and serves as the foundation for your insurance guarantees.

In short, these numbers determine the dollar amount of protection per acre for revenue protection (RP) and yield protection (YP) policies. If you already have a policy in place, your coverage is now based on these set prices.

How These Prices Affect Your Coverage

For farmers carrying Revenue Protection (RP), these projected prices are the baseline for your revenue guarantee. Your coverage is calculated as:

Projected Price × APH Yield × Coverage Level (%) = Revenue Guarantee

For example, if you have a 200-bushel APH on corn and elected 80% coverage, your revenue guarantee per acre would be:

200 bu × $4.70 × 80% = $752 per acre

This is the minimum revenue coverage you’re insured for—unless the harvest price is higher.

For Yield Protection (YP), your guarantee is based strictly on production. If a drought or storm wipes out your crop, you’ll be paid based on these prices for lost bushels.

What About Harvest Prices?

While these projected prices set the baseline for coverage, the Harvest Price—determined in October—could adjust your revenue guarantee if prices increase.

Here’s why this matters:

• If harvest prices are higher than the projected price, revenue protection (RP) policies increase to match the higher price, ensuring you have coverage that reflects market conditions.
•  If harvest prices are lower, your original revenue guarantee stands, locking in the higher February price for coverage.

For example, if corn prices rally to $5.50 in October, RP coverage will increase, ensuring you’re protected at that higher price. But if corn drops to $4.00, you still get paid based on today’s $4.70 projection.

Partnering with PRM to Protect Your Bottom Line

With commodity prices lower than in recent years, having a comprehensive risk management strategy is more important than ever. At Precision Risk Management (PRM), we take a team-based approach, using precision data and advanced risk analysis to help you maximize your coverage and reduce your risk. Our licensed Risk Management Advisors work alongside you to tailor a strategy that fits your farm’s unique needs—helping you make informed decisions in these challenging market conditions.

Now that the price discovery period has ended, it’s the perfect time to review your coverage and risk strategy. Contact your PRM Risk Management Advisor or call our office today to ensure your policy is optimized for 2025.