Document Type

Other

Publication Date

7-1-2006

Keywords

crop insurance, soybean rust, production risks/costs

Extension Number

ExEx 5057

Department

Economics

Description

Soybean rust is a production risk covered under standard crop insurance products. If producers take reasonable steps to prevent and control any damage and still face sizable yield reductions, then the insurance pays an indemnity on lost bushels. Widespread yield losses from soybean rust at the national level could increase prices, a risk for producers who forward price their crop. In South Dakota, producers insure a vast majority of soybean acres and tend to use relatively high levels of coverage. Understanding the typical kinds and levels of coverage gives insights into how to manage the production and price risks from soybean rust.

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