The $513 estimated 2012 guarantee is slightly lower than the $540 guarantee in 2011. In many situations, soybean guarantees will be slightly lower than last year’s guarantees given the same coverage level.
Last year, guarantees available from RP crop insurance were at historically high levels. Guarantees in 2012 will be at similar levels given that projected prices are around $5.74 for corn and $12.35 for soybeans. Even though 2012 projected prices likely will be lower than 2011 prices, the TA APH endorsement increases guarantees, causing guarantees to be at similar levels to last year.
Note that $5.74 for corn and $12.35 for soybeans are averages of the first two weeks. Prices could vary from these averages. Lower prices obviously would lower risk protection available from crop insurance products.