Farmers Net $12.70 Per Acre on Crop Insurance Endorsement Sponsored by IL Corn

The Trend-Adjusted Yield Endorsement has been available to Illinois farmers as a crop insurance endorsement since 2012, making 2022 the eleventh year of its availability. In this article, the University of Illinois FarmDoc team estimates that the net value to farmers is about $12.70 per acre per year over the last decade.

The product was sponsored by IL Corn and developed in conjunction with faculty from the University of Illinois prior to 2012.

The Trend-Adjusted Yield Endorsement adjusts the yield used in calculating insurance guarantees. Without the Trend Endorsement, Actual Production History (APH) yields are used, which can span a decade or more if a farmer is using a typical crop rotation system. Corn yields have changed considerably over a decade, making the APH yields lower than what a farmer expects to yield on his or her farm.

“In crops with increasing yields over time, the APH yield lags the true ‘expected,’ or most likely yield for the coming insurance year,” states the article.

“The Trend-Adjusted Yield Endorsement is an important crop insurance product, made possible for Illinois farmers by their Illinois corn checkoff. The net gain of $12.70 per acre per year for the farmers that have utilized this product is considerably more than the investment they are making per acre, showing a tremendous return on investment,” said Mark Wilson, ICMB Chairman.

Illinois farmers using the product on soybeans can expect a net value of $2.30 per acre, per year.

Review the full FarmDoc article here.

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