|
NWMO | Its 30% of the crop
So say your fall crop insurance price is $4
250 bu/ac x $4 = $1000 x 30% = $300/ac
$300/ac - $250/ac base rent = $50/ac bonus payment
For soybeans
Let’s use $10/bu
70 bu/ac x $10 = $700 x 33% = $231/ac
Since the $250/ac base rent wasn’t exceeded there wouldn’t be a payment on the soybeans
Hope that makes sense
Furthermore, make sure that it’s understood that the bonus payment is based purely off of yield and insurance price. No additional payments will be figured into gross per acre income such as insurance payments or government payments.
Say for example the farm yields 35 bu/ac and you receive a $200/ac insurance check, that total is not to be used for figuring gross income at the end of the year for bonus payment, only yield and fall crop insurance price | |
|
Cash rent plus bonus questions
