On February 23rd, the National Agricultural Statistical Service (NASS) released county corn and soybean yields for 2011 (see here). From these yields, 2011 Group Risk Income Plan (GRIP) payments can be estimated. For corn, GRIP with the harvest revenue option (GRIP-HR) at the 90% coverage level will make payments in 43% of Illinois counties while GRIP without the harvest price option (GRIP-NoHR) will pay in 20% percent of Illinois counties. For soybeans at the 90% coverage level, both GRIP-HR and GRIP-NoHR will pay in 49% of Illinois counties.

Corn Payments

Figure 1 shows estimated 2011 corn payments for corn at a 90% coverage level and a 100% protection level. In 2011, 96% of acres insured using GRIP-HR policies use the 90% coverage level. The 100% protection is the maximum protection level. Lower protection levels result in lower payments. Multiplying the protection level by the maximum payments in Figure 1 will yield an estimate of the GRIP-HR payment. For example, Macon County has a $161 payment at at 100% protection level. If an individual purchased at a 60% coverage level – the lowest possible protection level – the payment is $97 per acre ($161 x .60).

Counties receiving payments tend to be in central Illinois and southwest Illinois, with notable exceptions in southeast Illinois. Counties in northern Illinois did not receive payments (see Figure 1). Three counties have payments above $200 per acre: Union ($271 per acre), Hancock ($241), and Ford Counties ($219). Five counties had payments above $150 per acre but below $200 per acre: Macoupin (174 per acre), Madison (165), Brown (162), Macon ($161), and Jackson Counties (151).

In 2011, the harvest price for corn of $6.32 was above the $6.01 projected price, causing GRIP-HR's guarantees to be based on the $6.32 harvest price. As a result, GRIP-HR will make higher payments than GRIP-NoHR. GRIP-NoHR's guarantee is based on the lower $6.01 projected price.

Figure 2 shows GRIP-NoHR payments for corn. As can be seen in Figure 2, considerably fewer counties receive payments. In those counties that receive payments, GRIP-HoHR payments are less. In Hancock County, for example, GRIP-NoHR has a $164 per acre. The $164 payment is 68% of the $241 per acre payment for GRIP-HR.

Soybean Payments

Figure 3 shows GRIP payments for soybeans at a 90% coverage level and 100% protection level. The soybean harvest price of $12.14 per bushel is below the projected price of $13.49 per bushel. Because harvest price is below projected price, GRIP-NoHR and GRIP-HR have the same payments for the same coverage and protection levels.

As can be seen in Figure 3, many central and southern Illinois counties receive GRIP payments for soybeans. Nine counties have payments above $150 per acre: Hamilton ($198 per acre), Jefferson ($190), Washington ($172), Madison ($164), XClay ($160), Williamson ($156), Macon ($156), Franklin ($156), and Vermilion ($150).

Summary

GRIP will make sizable payments in some counties. For corn, payments are primarily a result of yield losses. Soybean losses are a combination of lower prices and lower yields.

The Crop Reporting Service of the USDA just released 2011 yields by county on February 23. The state average yield was 157 bushels per acre. Logan County averaged 173.4, Sangamon 165.7, DeWitt 177.6, Macon 153.2, Mason 142.7, Tazewell 172.7, and McLean 159.6.

The top counties in the state were Woodford at 186.5, DeKalb at 183.8, Carroll at 183.3, Stephenson at 181.6, and Stark at 181.2. The top producing county for total production was LaSalle County with 60,116,000 bushels of corn produced.

The Logan County yield increased significantly from the 2010 yield of 155.7. The record yield for Logan County is 197 bushel per acre yield achieved in 2007. This makes the 10 year corn average 174.71 bushels per acre. 10 year averages for Sangamon and Menard Counties were 177.32 and 173.90 respectively. Information on all counties is available from the source files at the National Ag Statistics Service at http://www.nass.usda.gov/Statistics_by_State/Illinois/Publications/County_Estimates/2011main.htm

For soybeans, the state average yield was 47.0 bushels per acre. Logan County averaged 54.6, Sangamon 55.5, DeWitt 55.4, Macon 46.2, Mason 43.8, Tazewell 56.7, and McLean 55.4.

The top counties in the state were Carroll County with 63.1, Knox with 61.2, Jo Daviess at 60.3, Henry with 60.0, and Woodford at 59.9.

The top producing county for total production remained McLean County with 14,374,000 bushels of production.

The Logan County yield of 55.5 was off the record of 57.6 established in 2010. Ten year averages were Logan with 51.72, Sangamon at 53.69, and Menard with 48.79.

FAST Training 2012: Farm Analysis Solution Tools

Dates and Locations

February 10 - Carroll-Lee-Whiteside Extension, Dixon, IL
February 14 - Jefferson Co. Extension, Mt. Vernon, IL
February 22 - Macon Co. Extension, Decatur, IL
February 23 - Champaign Co. Extension, Champaign, IL

Agenda

Topics Include: Crop Budgeting, Breakeven, Rent Decisions, Risk Management Strategies and Crop Insurance.

This is one-day hands-on workshop that will further participants' understandings of Microsoft Excel applications and introduce FAST spreadsheets developed by agricultural economists at the University of Illinois.

Registration

Download registration and additional information here: PDF

Questions? Contact:
Ryan Batts
Ph. 217-333-1817