Commodity advisor and broker Al Kluis offered a four-step risk management plan to address low grain prices:

1. Revenue Protection (RP) Crop Insurance: RP insurance safeguards against price drops and production losses, providing vital risk management protection. For 2024, the February averages were $4.66 for corn and $11.55 for soybeans, with possible indemnity payments potentially covering 80-85% of the difference due to current lower prices. While this is not as good as having a bin-busting crop with high grain prices, it is doing what it’s designed to do. Keep you in business for another year.

2. New-Crop Hedges: Early hedging is critical to manage risk in fluctuating markets.

3. Buying Puts for Corn and Soybeans: December corn and November soybean puts help protect against further price declines.

4. Agriculture Risk Coverage (ARC-CO) or Price Loss Coverage (PLC): The formulas used to determine possible payout and timing are full of variables and more complex. These programs might add $75–$95 per acre for corn and $50–$70 per acre for soybeans.

Read more on how RP Crop Insurance and Agriculture Risk Coverage (ARC-CO) or Price Loss Coverage (PLC) can help you navigate low commodity prices here.