Crop Revenue Coverage

EXAMPLES

• WHAT IS CRC?
• FEATURES
• CRC VS. MPCI
• CRC PRICES & INDEMNITY PAYMENTS
• GUARANTEES
• EXAMPLES

  • CRC CORN (Example 1)

    Low Production / Low Harvest Price
    
    100 bu. (guar.) x 2.60 (base price) =$260.00
    100 bu. (guar.) x 2.47 (harv. price) =$247.00
    $260.00 (guar. revenue)
    
    Harvested Production  x  Harvest Price = Value of Production
    90 bu. x 2.47 = $222.00
    
    $38 Indemnity Payment
    Any production loss under bushel guarantee paid.

  • CRC CORN (Example 2)

    Low Production / High Harvest Price
    
    100 bu. (guar.) x 2.60 (base price) =$260.00
    100 bu. (guar.) x 3.15 (harv. price) =$315.00
    $315.00 (guar. revenue)
    
    Harvested Production  x  Harvest Price = Value of Production
    90 bu. x 3.15 = $284.00
    
    $31 Indemnity Payment
    Price increase adds to indemnity payment with production loss.

  • CRC CORN (Example 3)

    Good Production / High Harvest Price
    
    100 bu. (guar.) x 2.60 (base price) = $260.00
    100 bu. (guar.) x 3.15 (harv. price) = $315.00
    $315.00 (guar. revenue)
    
    Harvested Production  x  Harvest Price = Value of Production
    120 bu. x 3.15 = $378.00
    
    No Indemnity Payment
    Premium always calculated using base price.

  • CRC CORN (Example 4)

    Good Production / Low Harvest Price
    
    100 bu. (guar.) x 2.60 (base price) = $260.00
    100 bu. (guar.) x 2.47 (harv. price) = $247.00
    $260.00 (guar. revenue)
    
    Harvested Production  x  Harvest Price = Value of Production
    100 bu. x 2.47 = $247.00
    
    $13 Indemnity Payment
    Minimum Guarantee
    Loss of actual revenue due to price decrease.
• REGIONAL EXCHANGES
• MARKET INFORMATION