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.
- 8.5cwt insurance weight per head x $146 = $1241/head
Premium would be $2.57/cwt*1700cwt=$4369
- $4369/200 head= $21.85/head
See Example #7 for Settlement results.