If your soybeans have revenue coverage also, the calculation will be the same but the outcome will be different. The spring guarantee is $12.87, which was also established in February, based on November soybean futures’ closes during that month. However, the fall harvest price that will be concluded Thursday is shaping up to be the same value.
If both are the same, and they are less than a penny apart now, there will have to be a yield loss in soybeans to get an indemnity check from crop insurance. If you have 80 percent coverage, your yield will have to drop more than 80 percent below your APH for a payment to occur. On a 50 bushel APH that would be 40 bushels as the threshold for a payment on 80 percent coverage.
Corn and soybean prices continue to weaken as the glut of harvest show there is an abundant crop headed for storage. However, storing grain will have to pay in the form of higher prices later on. Now, crop insurance indemnity payments may be issued to many farmers with coverage of 80 percent or more, even with good yields. That is because the harvest price for corn is 80 percent below the spring guarantee. For beans the spring and fall guarantees are equal, so any payment will have to be generated by a yield loss.
Source: FarmGate blog