Find Your Right Coverage
In-Season Price Option Example
The following is an example only and does not reflect actual prices as listed in the price tables elsewhere.
Example #1
If the base price for barley on your coverage detail is $100/T ($0.100 kg), your individual coverage is 1,000 kg/acre and you selected 80% coverage, your liability would be:
Liability = 1,000 kg/acre x 80% x $0.100/kg
= $80.00/acre
If your premium rate is 5.75%, your premium would be:
Premium = $80.00/acre x 5.75%
= $4.60/acre
The insured price is then reset based upon a six month average of market prices (September - February). If the price increases to $110/T ($0.110 kg), your liability is calculated using the new insured price as follows:
Liability = 1,000 kg/acre x 80% x $0.110/kg
= $88.00/acre
Premium = $4.60/acre (Premium is not adjusted.)
If the insured price decreases based on the six month average price to $90/T ($0.090/kg), your liability is calculated using the new insured price as follows:
Liability = 1,000 kg/acre x 80% x $0.090/kg
= $72.00/acre
Premium = $4.60/acre (Premium is not adjusted.)