Find Your Right Coverage
Crop Averaging Program Coverage Example
The following is an example only and does not reflect actual prices as listed in the price tables.
You intend to seed 1,000 acres of HRS wheat, 1,000 acres of barley and 500 acres of large green lentils.
Coverage Example Scenario
At 80 per cent, your coverage amount is:
For wheat:
26 bushels/acre x 1,000 acres x $4.00/bushel = $104,000
For barley:
24 bushels/acre x 1,000 acres x $2.00/bushel = $48,000
For lentils:
20 bushels/acre x 500 acres x $10.00/bushel = $100,000
The crops you selected and the acres you plan to seed to each are rated according to their risk. The cumulative risk is assigned a value which translates into a coverage increase on your group of crops.
Your local SCIC office calculates the coverage for insuring these crops under CAP.
For this example, the coverage level SCIC would provide on this combination of wheat, barley and lentils would be 86 per cent.
The additional six per cent coverage is applied to your guarantee. Your coverage is adjusted by crop:
28 bushels/acre for wheat
25 bushels/acre for barley
21 bushels/acre for lentils
To calculate your dollar guarantee:
Yield Coverage x Acres x Price = Guarantee ($)
For wheat:
28 bushels/acre x 1,000 acres x $4.00/bushel = $112,000
For barley:
25 bushels/acre x 1,000 acres x $2.00/bushel = $50,000
For lentils:
21 bushels/acre x 500 acres x $10.00/bushel = $105,000
Total dollar guarantee is $267,000.