Example #6: WCPIP Feeder Purchase

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
Feeder Price example.jpg

See Example #7 for Settlement results.