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
See Example #5 for Settlement results.