Grand Rapids, MI | Illinoisfan - 9/1/2010 23:08
Example:
APH: 200 bpa
3.99 spring price
85% coverage
200x3.99x.85 = $678.30 guarantee
If the fall price ends at $4.50, does my coverage go to...
200x.85x4.50 = $765 ?
So if (and I say if) our enterprised yield comes in at 160 bpa, we would get the difference of
$765 and 160x4.5 (which is $720) = $45 per acre
Anything wrong with this math?
Thanks
This is correct if you have CRC or RA with the Harvest Price Option. If you have the RA without the harvest price option your guarantee would stay at $678.30. The harvest price option as demonstrated here is a nice option for those who like to sell ahead. It will pay you the fall price for the missing bushels allowing you to not have to take a loss on the bushels you need to replace to fill a contract (or buy out the contract) |
Crop Insurance Question - Is this simple math right?
