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Farm Profile 5
A U-pick strawberry farm opens during strawberry season only.
5 Year History of Allowable Annual Incomes/Sales (2000 - 2004)
| 2000 |
$35,000 |
| 2001 |
$38,000 |
| 2002 |
$40,000 |
| 2003 |
$37,000 |
| 2004 |
$42,000 |
| Average: |
$38,400 |
Expected Revenue for the Insurance Year - Expected Income and Insurable Revenue
Product |
Expected Income |
Insurable Revenue |
Note |
Strawberries |
$45,000 |
$45,000 |
U-pick sales and pre-picked to be sold on the farm |
Total |
$45,000 |
$45,000 |
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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 $45,000.
Coverage Level |
Payment Rate |
Liability($) |
Total Premium ($) |
Premium Subsidy (%) |
Premium Subsidy ($) |
Farmer Premium ($) |
Premium as Percent of Liability (%) |
|
65% |
75%
90% |
$21,938
$26,325 |
$1,141
$1,368 |
59%
59% |
$673
$807 |
$468
$561 |
2.1%
2.1% |
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75% |
75%
90% |
$25,313
$30,375 |
$2,024
$2,429 |
55%
55% |
$1,113
$1,336 |
$991
$1,093 |
3.6%
3.6% |
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Coverage at the 80% level is not available due to not meeting the minimum 3 qualified crops rule. |
Loss and Payment Scenario (Estimated Only)
Assuming during the insurance year, a rainy and cold spring reduced the strawberry yield and quality, and also lowered the U-pick traffic. At the end of the insurance year, the farm realized a total allowable revenue of $28,000.
The farm has an AGR-Lite policy of 75% coverage and 90% payment rate with a premium payment of $1,093.
- Approved Adjusted Gross Revenue is $45,000
- Coverage Level 75% (or loss/payment trigger) = $45,000 * 75% = $33,750
- Actual Allowable Revenue = $28,000
- Difference between coverage level and revenue realized = $33,750 - $28,000 = $5,750
- Payment Rate 90%
- Insurance Payout = $5,750 * 90% = $5,175
- Insurance Benefit/Premium Cost Ratio = $5,175/$1,093 = $4.73
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