won't be set until late February, but any winter rally in futures
prices will only alleviate revenue risk. If corn's guarantee averages
below $5.80 and soybeans $11.80, a typical Illinois operator still
could face losses under some low-yield scenarios, noted University of
Illinois economist Gary Schnitkey.
The issue would be compounded if operators leased most of what they
farm and committed to cash rent of $350/acre or more. Without a $5.80
or better crop insurance guarantee on corn, "high cash rent farms can
bleed a lot if the market turns against them," Schnitkey added.
As seen on www.dtnprogressivefarmer.com
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