Corn Heat Unit Claim Calculation

Example #1

If the long term normal for the selected station is 2250 corn heat units and during the season 2030 corn heat units are accumulated, percent normal is calculated by dividing actual by normal.

2030 divided by 2250 = 90.2%

95% - 90.2% = 4.8% difference
Liability is paid at 4 per cent for each per cent the accumulations drop below 95 per cent.
Therefore payment is 4.8% x 4% = 19.2%

If insured coverage was $250, the payment would be 19.2% x $250 = $48 per acre