|
Farm Profile 2
An organic
vegetable farm grows several vegetable crops and sell them at two
farmers' markets.
5 Year History of
Allowable Annual Incomes/Sales (2000 - 2004)
| 2000 |
$5,000 |
| 2001 |
$9,000 |
| 2002 |
$15,000 |
| 2003 |
$23,500 |
| 2004 |
$28,000 |
| Average: |
$16,400 |
Expected Commodity - Revenue and Insurable Revenue
|
Product |
Expected Income |
Insurable Revenue |
Note |
|
Heirloom Tomatoes |
$8,000 |
$8,000 |
Will be sold at the farmers' markets |
|
Cherry Tomatoes |
5,000 |
5,000 |
Will be sold at the
farmers' markets |
|
Lettuce |
6,000 |
6,000 |
Will be sold at the
farmers' markets |
|
Herbs |
4,000 |
4,000 |
Will be sold at the
farmers' markets |
|
Summer Squash |
3,000 |
3,000 |
Will be sold at the
farmers' markets |
|
Garlic |
1,000 |
1,000 |
Will be sold at the
farmers' markets |
|
Winter Squash |
2,000 |
2,000 |
Will be sold at the
farmers' markets |
|
Potatoes |
2,000 |
2,000 |
Will be sold at the
farmers' markets |
|
Mixed or other Vegetables |
4,000 |
4,000 |
Will be sold at the
farmers' markets |
|
Flowers |
3,000 |
3,000 |
Will be sold at the
farmers' markets |
|
Total |
38,000 |
38,000 |
|
Premium Example - for the 2006 Insurance Year
(Estimated Only. This could change depending on which county the farm is located in and what other crop insurance programs the farm might have.)
This farm has an Approved Adjusted Gross Revenue of $34,014.
Coverage Level |
Payment Rate |
Liability($) |
Total Premium ($) |
Premium Subsidy (%) |
Premium Subsidy ($) |
Farmer Premium ($) |
Premium as Percent of Liability (%) |
|
65% |
75%
90% |
$16,582
$19,898 |
$332
$398 |
59%
59% |
$196
$235 |
$136
$163 |
0.8%
0.8% |
|
75% |
75%
90% |
$19,133
$22,959 |
$593
$711 |
55%
55% |
$326
$391 |
$267
$320 |
1.4%
1.4% |
|
80% |
75%
90% |
$20,408
$24,490 |
$796
$956 |
48%
48% |
$382
$459 |
$414
$497 |
2.0%
2.0% |
Loss and Payment Scenario (Estimated Only)
Assuming during the insurance year,
a disease outbreak attacked several of the crops on the farm. Because there is
no organic material available to treat the specific disease, the farm suffered
drastic yield and quality loss of the affected crops. At the end of the
insurance year, the farm realized a total allowable
revenue of $20,000.
The farm has an AGR-Lite policy of 75%
coverage and 90% payment rate with a premium payment of $320.
- Approved Adjusted Gross Revenue is $34,014
- Coverage Level 75% (or loss/payment trigger) = $34,014 * 75% = $25,510
- Actual Allowable Revenue = $20,000
- Difference between coverage level and revenue realized = $25,510-$20,000 = $5,510
- Payment Rate 90%
- Insurance Payout = $5,510 * 90% = $4,959
- Insurance Benefit/Premium Cost Ratio = $4,959/$320 = $15.50
Back to Farm Profiles
|
