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Crop Averaging Program Claim Examples
The following is an example only and does not reflect actual prices as listed in the price tables.
You seed 1,000 acres of HRS wheat, 1,000 acres of barley and 500 acres of large green lentils.
Claim A Example (No Claim)
You are reporting your production information at the end of the year. After quality factors are applied, you harvest:
26 bushels/acre of wheat
25 bushels/acre of barley
23 bushels/acre of lentils
To calculate the actual value of your harvested production:
For wheat:
26 bushels/acre x 1,000 acres x $4.00/bushel = $104,000
For barley:
25 bushels/acre x 1,000 acres x $2.00/bushel = $50,000
For lentils:
23 bushels/acre x 500 acres x $10.00/bushel = $115,000
Actual harvested production value = $269,000 (104,000 + 50,000 + 115,000)
Total Claim Value = total dollar guarantee – actual harvested production value
$267,000 – $269,000 = $-2,000 = $0 (no claim)
Claim B Example (Claim Position)
After quality factors are applied, you harvest:
26 bushels/acre of wheat
20 bushels/acre of barley
19 bushels/acre of lentils
To calculate the actual value of your harvested production:
For wheat:
26 bushels/acre x 1,000 acres x $4.00/bushel = $104,000
For barley:
20 bushels/acre x 1,000 acres x $2.00/bushel = $40,000
For lentils:
19 bushels/acre x 500 acres x $10.00/bushel = $95,000
Actual harvested production value = $239,000 (104,000 + 40,000 + 95,000)
Total Claim Value = total dollar guarantee – actual harvested production value
267,000 – $239,000 = $28,000