Example #4: Purchase Calf

Doug has 150 calves that he is going to market in November, they will average 650 lbs.

  • 150head*650lbs=97,500 lbs. or 975cwt to insure.

Doug wants at least $1.40/lbs. ($140/cwt).  On April 17 2013 AFSC offered coverage of $142/cwt for a premium of $3.19/cwt  Doug does the math, he would be covered for $923/head.

  • $3.19/cwt * 975= $3,110.25 (total premium)
  • $3,110.25/150 head=$20.74/head
Calf Purchase example.jpg

See Example #5 for Settlement results.