Find Your Right Coverage
Forage Rainfall Claim Calculation
You enrol 100 grazing acres at $99/acre coverage. You are covered for a total liability of 100 acres x $99/acre coverage = $9,900.
These examples use precipitation data to demonstrate the impact the monthly weighting and precipitation cap selection has on your Forage Rainfall Insurance coverage.
Scenario A
| Weighting | Long-Term Normals | Monthly Precipitation | Monthly Precip/Long-Term Normal = % of normal (maximum of 150%) | Value of Monthly Weightings | % of Normal x Monthly Weighting = monthly weighed % of normal |
|---|---|---|---|---|---|
| April (30) | 25 mm | 40 mm | 160% (cap reached) | 30% | 45.0% |
| May (30) | 45 mm | 32 mm | 71.1% | 30% | 21.3% |
| June (30) | 70 mm | 33 mm | 47.1% | 30% | 14.1% |
| July (10) | 65 mm | 16 mm | 24.6% | 10% | 2.5% |
| =82.9% normal |
Claim Calculation
With 150% cap percent of normal = 82.9%
SCIC will begin payment when rainfall drops below 80% normal.
In scenario A, the per cent normal is above 80 per cent so no payment will be made.
Scenario B
| Weighting | Long-Term Normals | Monthly Precipitation | Monthly Precip/Long-Term Normal = % of normal (maximum of 125%) | Value of Monthly Weightings | % of Normal x Monthly Weighting = monthly weighed % of normal |
|---|---|---|---|---|---|
| April (30) | 25 mm | 40 mm | 160% (cap reached) | 30% | 37.5% |
| May (30) | 45 mm | 32 mm | 71.1% | 30% | 21.3% |
| June (30) | 70 mm | 33 mm | 47.1% | 30% | 14.1% |
| July (10) | 65 mm | 16 mm | 24.6% | 10% | 2.5% |
| =75.4% normal |
Claim Calculation
= (80% - 75.4%) x 2.5%
= 4.6% x 2.5%
= 11.5% indemnity (claim)
Claim per acre
= $99 x 11.5%
= $11.39 per acre
Total insured acres
= $99 x 100
= $9,900 x 11.5%
= $1,138.50
The change in cap resulted in a claim of $1,138.50 on 100 acres.
Scenario C
| Weighting | Long-Term Normals | Monthly Precipitation | Monthly Precip/Long-Term Normal = % of normal (maximum of 125%) | Value of Monthly Weightings | % of Normal x Monthly Weighting = monthly weighed % of normal |
|---|---|---|---|---|---|
| April (20) | 25 mm | 40 mm | 160% (cap reached) | 20% | 25% |
| May (40) | 45 mm | 32 mm | 71.1% | 40% | 28.4% |
| June (40) | 70 mm | 33 mm | 47.1% | 40% | 18.8% |
| July (0) | 65 mm | 16 mm | 24.6% | 0% | 0% |
| =72.2% normal |
Claim Calculation
= (80% - 72.2%) x 2.5%
= 7.8% x 2.5%
= 19.5% indemnity (claim)
Claim per acre
= $99 x 19.5%
= $19.30 per acre
Total insured acres
= $99 x 100
= $9,900 x 19.5%
= $1,930.50
The change in weighting option resulted in a claim of $1,930.50 on 100 acres.