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Capture Opportunities When They Happen With Revenue Net Insurance

Add-on to Revenue Protection (RP) insurance provides flexibility in establishing price guarantee.
By ADM Grain Marketing
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Crop insurance is a great tool to protect farm revenue and allows you to forward market bushels with confidence. But it does have limitations, especially where the price guarantee is concerned. The spring price for crop insurance policies is established in February. If prices are good at that time, then you’re likely guaranteed a profitable crop. But you are limited to that specific point in time.

Now, however, an insurance product from Crop Risk Services allows you to set a guaranteed price for corn or soybeans earlier than your federal multi-peril policy allows by selecting one or more two-week-averaging periods beginning June 1 through February 15. RevenueNet is purchased in addition to your federal Revenue Protection (RP) insurance plan. It allows you to plan next year’s crop budget with more security than waiting until the typical crop insurance discovery period.

If a pricing opportunity arises, you can take advantage of it. For example, if you establish a RevenueNet value during a period of strong prices, and the federal price discovery period is lower than the established RevenueNet price, you automatically start off with more dollars of insurance than you would have otherwise.

The details

RevenueNet provides peace of mind with guaranteed revenue to help you analyze expenses for the year ahead. It allows you to insure all or a portion of your acres in the price discovery interval of your choice. Other details include:

  • RevenueNet is available in select states for corn and soybean crops insured under a federal RP insurance plan.
  • A RevenueNet policy provides price protection up to 8½ months earlier than many federal MPCI policies. It may be used in conjunction with any unit structure and any coverage level between 50% and 85%.
  • Coverage can be increased by electing price ticks higher than the settlement price; up to $0.25 higher for corn (in $0.05 increments) and up to $0.50 higher for soybeans (in $0.10 increments).
  • You won’t pay any premium until October 2024 – a considerable benefit in these high interest rate environments.
  • RevenueNet can be used in combination with any grain marketing tool offered to execute sales. And, if prices were to rise, then your federal crop insurance policy will still work as intended.

Run a scenario

The ADM crop insurance worksheet is a perfect tool to understand how locking in a reference price on your crop insurance with RevenueNet could impact your gross revenue in combination with any sales tool you choose. You can run a scenario with the current RevenueNet reference price and compare it against a different price in your projected price discovery period.

An ADM grain origination specialist or Crop Risk Services representative would be happy to work with you to use the crop insurance worksheet found on our website. Or learn more about using it in Gear 2 of Shift, our free online course.

ADM is providing this communication for informational purposes, and it is not a solicitation or offer to purchase or sell commodities. The sources for the information in this communication are believed to be reliable, but ADM does not warrant the accuracy of the information. The information in this communication is subject to change without notice. If applicable, any information and/or recommendations in this communication do not take into account any particular individual’s or company’s objectives or needs, which should be considered before engaging in any commodity transactions based on these recommendations. ADM or its affiliates may hold or take positions for their own accounts that are different from the positions recommended in this communication.

Crop Risk Services, Inc., 132 S. Water St., Decatur, IL 62523. CA license number: 0G66571. Coverage description is summarized. Refer to the actual policy for a full description of applicable terms, conditions, limits, and exclusions. Policies are underwritten by Great American Insurance Company or Stratford Insurance Company. Crop Risk Services, Inc., Great American Insurance Company and Stratford Insurance Company are equal opportunity providers. Great American Insurance Company, 301 E. Fourth St., Cincinnati, OH 45202.