Contact Phone: +1 888 772 2793
A guide to the 2014 Farm Bill


Welcome to the Cornerstone Insurance Agency

Sandrock/Mickley Insurance


2016 Spring Price:
Corn- $3.86
Soybeans- $8.85

2016 Harvest Price:
Corn- $3.49
Soybeans- $9.75



Calculating a Revenue Protection Loss

Example:
190-  Yield (Approved Yield/ Average Yield)
85%- Revenue Protection Coverage


$3.86- Spring Price
161.5- Bushel Guarantee
$623.39- Revenue Guarantee


IF HARVEST PRICE IS LOWER (Harvest Price- CBOT October Average of December Futures)
If the Harvest Price is LOWER we look for a REVENUE LOSS
(Guaranteed Revenue) - (Harvested Revenue {Harvested Bushels x Harvest Price}) = Revenue Loss

$623.39- Guaranteed Revenue
192- 
Harvest Yield
$3.10- Harvest Price

192 x $3.10 = $595.20 (Harvest Revenue)
$623.39 - $595.20 = $28.19/acre loss

IF HARVEST PRICE IS HIGHER (Harvest Price- CBOT October Average of December Futures)
If the Harvest Price is HIGHER we look for a BUSHEL LOSS
(Guaranteed Bushels) - (Harvested Bushels) = Bushel Loss
(Bushel Loss) x (Harvest Price) = Crop Insurance Loss

150- Harvest Yield
$4.50- Harvest Price

161.5 - 150 = 11.5 (Bushel Loss)
11.5 x $4.50 (Harvest Price) = $51.75/acre loss

 

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