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Cotton Crop Insurance: Unveiling regional differences in projected and harvest prices

Crop insurance is a tool that helps farmers manage the risks linked to lower yields or revenue in agriculture. The prices used in determining crop insurance indemnities are established in the projected and/or harvest price discovery periods each year. The projected price is determined for each crop by taking an average of the daily closing futures prices across a 30-day window in early spring, when crop planting would normally occur, for a given crop’s harvest month contract. Similarly, the harvest price is determined for each crop by taking an average of the daily closing futures prices across a 30-day window in the fall, when harvest would normally occur for a given crop’s harvest month contract.

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Lamesa Press-Reporter

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