Example #7: WCPIP Feeder Settlement

Sam has coverage of $146/cwt on his feeders for Oct 7.  As Sam’s claim window is drawing near he begins to watch the settlement indexes.  During Sam’s four week claim window Sept 16-Oct 7th; settlement did drop below coverage therefore Sam would have received a payout.

  • Week 1$146(coverage)-144.44 (settlement)=$1.56/cwt*1700cwt insured=$2652 payout
  • Week 2$146-$142.49=$3.51*1700cwt=$5967.00 payout
  • Week 3 $146-144.05=$1.95*1700=$3315 payout
  • Week 4 $147/cwt NO PAYOUT
Date Settlement / CWT
16-Sept 144.44
23-Sept 142.49
30-Sept 144.05
7-Oct 147