|
Farm Profile 7
A livestock farm produces sheep/lambs, free range chickens and eggs and sells them at farmers' markets.
5 Year History of Allowable Annual Incomes/Sales (2000 - 2004)
| 2000 |
$50,000 |
| 2001 |
$45,000 |
| 2002 |
$52,000 |
| 2003 |
$50,000 |
| 2004 |
$55,000 |
| Average: |
$50,400 |
Expected Revenue for the Insurance Year - Expected Income and Insurable Revenue
Product |
Expected Income |
Insurable Revenue |
Note |
Chickens |
$30,000 |
$30,000 |
Sold on farmer’s markets |
Sheep/lamb |
$20,000 |
$20,000 |
U-pick sales, on the farm stand and at one farmer’s market |
Eggs |
$10,000 |
$10,000 |
U-pick sales, on the farm stand and at one farmer’s market |
Total |
$60,000 |
$60,000 |
|
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 $56,750.
Coverage Level |
Payment Rate |
Liability($) |
Total Premium ($) |
Premium Subsidy (%) |
Premium Subsidy ($) |
Farmer Premium ($) |
Premium as Percent of Liability (%) |
|
65% |
75%
90% |
$27,666 $33,199 |
$1,356
$1,627 |
59%
59% |
$800 $960 |
$556
$667 |
2.0%
2.0% |
|
75% |
75%
90% |
$31,922 $39,306 |
$2,427
$2,911 |
55%
55% |
$1,335
$1,601 |
$1,092 $1,310 |
3.4%
3.4% |
|
80% |
75%
90% |
$34,050
$40,860 |
$3,235
$3,883 |
48%
48% |
$1,553
$1,864 |
$1,682
$2,019 |
4.9%
4.9% |
Loss and Payment Scenario (Estimated Only)
Assuming during the insurance year, an ice storm in late winter destroyed a portion of the farm’s chicken and hen houses, and the cold and wet early spring followed immediately caused the farm to lose some chickens/hens and lowered egg production. At the end of the insurance year, the farm realized a total allowable revenue of $42,000.
The farm has an AGR-Lite policy of 80% coverage and 90% payment rate with a premium payment of $2,019.
- Approved Adjusted Gross Revenue is $56,750
- Coverage Level 80% (or loss/payment trigger) = $56,750 * 80% = $45,400
- Actual Allowable Revenue = $42,000
- Difference between coverage level and revenue realized = $45,400 - $42,000 = $3,400
- Payment Rate 90%
- Insurance Payout = $3,400 * 90% = $3,060
- Insurance Benefit/Premium Cost Ratio = $3,060/$2,019 = $1.52
Back to Farm Profiles
|
