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Sam has 200 feeder calves that he will be marketing in October at 850lbs. Sam would have 170,000 lbs. or 1700cwt to insure. Sam purchases coverage on Jan 23/13 for coverage of$146/cwt for a premium of $2.57/cwt.
Premium would be $2.57/cwt*1700cwt=$4369
See Example #7 for Settlement results.