If you are ready to sign up for those levels of spring guarantees, make an early appointment with your crop insurance agent. But also you should beware of the downside of high guarantees, and that is the cost of the premium. When guarantees go up, so do premiums. Although the USDA subsidizes and average of two-thirds of crop insurance premiums, higher guarantees lead to higher premiums. So that is the downside of that benefit.
Schnitkey says, “The 2013 projected prices for corn and soybeans likely will be near historically high levels, providing farmers will the ability to set relatively high per acre guarantees using crop insurance. These are possibilities for falling prices, particularly for soybeans. However, historical chances suggest projected prices will most likely be at high levels.”