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Boone, Iowa | I am doing some calculations to show a landlord about crop insurance. I need someone to help walk me through this to make sure I have this correct. Assuming I am purchasing a 75% RA coverage, I can multiply my proven yield by 75% to reach my guaranteed bushels. Example if proven yield is 170, 127.5 bushels will be my guaranteed bushels. I can then take the 127.5 bu. X $4.06 CBOT established spring price. This equals $517.65. Then, this fall at the end of November, there will be a established fall price, which is the average Dec futures price for the month of November. Lets use $3.00 CBOT price. Do I then take my guaranteed 127.5 bushels X $3.00=$382.5. We then use the spring figure, since it is the higher of the two prices. Now, if I go out and pull 160 bu/acre off of a particular field, what price do I use to see if the RA insurance will pay anything? | |
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Can someone help me figuring out crop insurance?
