Production Guarantee Example

The following is an example only and does not reflect actual prices as listed in the price tables.

 

 

You have 70% coverage on 100 acres of HRSW and the long-term individual yield is 708 kg/acre (26 bushels/acre).

Your production guarantee is:
708 x 70% = 496 kg/acre (18.2 bushels/acre)

Your total production guarantee is: 
496 x 100 acres = 49,600 kg (1,822 bushels)

In the fall, you harvest 29,937 kg (1,100 bushels). To calculate your yield-loss:

  49,600 kg (total production guarantee)
- 29,937 kg (actual harvested production)
  19,663 kg yield-loss

Your yield-loss claim payment is:
19,663 kg x $0.150 ($/kg) = $2,949.45