Settlement of cattle insurance policies is based on a weekly cash price, called the settlement index. The settlement of policies will be based on an average price for that cattle product sold, compared against the coverage level for the policy. Settlement is not based on the actual prices received by each individual policy holder’s sales. The settlement index for each cattle product is determined using different sources:
Cattle Price Insurance Products & Settlement Index Sources
- Calf: Participating auction markets – 550-650 pound steer average price.
- Feeder: Participating auction markets – 850 pound steer average price.
- Fed: Canfax steer and heifer average price.
The settlement index for each week is calculated and published on the following Monday allowing policy holders to settle some or all of their insured weight against that published settlement price. This can only take place between 1:30pm and 7pm on that Monday.