Claim Example
A producer selects Basic Hay Insurance and grows three types of hay. When harvested, two of the three hay types fall short of their coverage tonnage.
Hay Type |
Acres |
Coverages (tonnes) |
Harvested Yield (tonnes) |
Difference (tonnes) |
Alfalfa |
160 |
284.8 |
180 |
-104.8 |
Alfalfa Grass Mix |
40 |
71.2 |
68 |
-3.2 |
Coarse Hay |
80 |
142.4 |
190 |
47.6 |
Totals |
280 |
498.4 |
438 |
-60.4 |
Aggregate coverage is 1.78 tonnes per acre (498.4 tonnes of coverage on 280 acres).
Basic Hay Claim Amount |
= Total Production Shortfall (tonnes) x High Dollar Value
= 60.4 tonnes (shortfall) x $ per tonne (High Dollar Value)
= $
|
In this example, the producer’s total harvested yield is less than the total aggregate coverage. The selected High Dollar Value is $ per tonne. The producer would be entitled to a claim payment of $.