When it comes to slicing the 2023 crop insurance price data and the potential impact to the acreage battle between corn and soybean acres, the situation has several additional elements in play.
First, prices are historically high. Spring 2023 crop insurance prices are some of the highest observed, with corn at $5.91 and soybeans at $13.76, which is good news given the high production costs. Secondly, relative prices are generally favorable for corn.
The overall profitability situation, however, measured by the contribution margin, is above the long-run average but lower than last year. Finally, soybeans have a strong budget advantage given the high-cost structure.
For both crops, the 2023 prices are the second-highest observation. For corn, the 2023 price lags behind the 2011 record ($6.01). Last year, soybean prices set a record of $14.33. Near-record prices in 2023 set the stage for high revenue projections and crop insurance coverage levels.
Source: michiganfarmnews.com
Categories: Michigan, Crops, Corn, Soybeans