NY Farmers' Market - Farm Profile 3

Farm Profile 3

A diversified fruit farm grows apples, peaches, plums and sweet cherries. The retail stand opens from July -November, and it also sells some wholesale to other farm stands.

5 Year History of Allowable Annual Incomes/Sales (2000 - 2004)

2000	$190,000
2001	$220,000
2002	$180,000
2003	$250,500
2004	$230,000
Average:	$214,000

Expected Commodity - Revenue and Insurable Revenue

Product	Expected Income	Insurable Revenue	Note
Apples	$200,000	$200,000	Combined retail and wholesale sales
Peaches	80,000	80,000	Combined retail and wholesale sales
Sweet Cherries	20,000	20,000	Retailed only at the farm stand
Plums	20,000	20,000	Retailed only at the farm stand
Total	$320,000	$320,000

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 $235,400.

Coverage Level	Payment Rate	Liability($)	Total Premium ($)	Premium Subsidy (%)	Premium Subsidy ($)	Farmer Premium ($)	Premium as Percent of Liability (%)

65%	75% 90%	$114,758 $137,709	$4,361 $5,234	59% 59%	$2,573 $3,088	$1,788 $2,315	1.6% 1.6%

75%	75% 90%	$132,413 $158,895	$7,811 $9,376	55% 55%	$4,296 $5,157	$3,754 $4,504	2.7% 2.7%

80%	75% 90%	$141,240 $169,488	$10,452 $12,542	48% 48%	$5,017 $6,020	$5,435 $6,522	3.8% 3.8%

Loss and Payment Scenario (Estimated Only)

Assuming during the insurance year, a hail storm hit the apple orchard and part of the peach orchard. The farm suffered quality loss on the apple crop that resulted in much of the apple crop could not be sold in the fresh market and had to be sold for juice or cider. The farm also lost some of the peach crops that could not be sold in the fresh market, and without a processing market outlet, they have to be left on the tree. At the end of the insurance year, the farm realized a total allowable revenue of $170,000.

The farm has an AGR-Lite policy of 80% coverage and 75% payment rate with a premium payment of $5,435.

Approved Adjusted Gross Revenue is $235,400
Coverage Level 80% (or loss/payment trigger) = $235,400 * 80% = $188,320
Actual Allowable Revenue = $170,000
Difference between coverage level and revenue realized = $188,320 - $170,000 = $18,320
Payment Rate 75%
Insurance Payout = $18,320 * 75% = $13,740
Insurance Benefit/Premium Cost Ratio = $13,740/$5,435 = $2.53

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