CALCULATING CROP INSURANCE INDEMNITY PAYMENTS Given the following information, calculate the indemnity payment (if any) that would be received from each type of insurance for each of the scenarios below. SOYBEANS Scenario 1 Scenario 2 Scenario 3 Actual yield = 30 bu. Actual yield = 42 bu. Actual yield = 20 bu. Oct. futures price = $11.80 Oct. futures price = $10.50 Oct. futures price = $13.50 Yield loss ____________ bu. ____________ bu. ____________ bu. Indemnity payment $___________/acre $___________/acre $___________/acre Actual revenue $___________/acre $___________/acre $___________/acre Indemnity payment $___________/acre $___________/acre $___________/acre Final revenue guarantee $___________/acre $___________/acre $___________/acre Actual revenue $___________/acre $___________/acre $___________/acre Indemnity payment $___________/acre $___________/acre $___________/acre APH yield = 52 bushels/acre Yield Protection Feb. futures price = $12.00 / bu. 75% guarantee Guarantee = _______ bu./acre Revenue Protection (basic) Feb. futures price = $12.00 75% guarantee Revenue guarantee = $_______/a Revenue Protection (harvest price option) Feb. futures price= $12.00 75% guarantee Initial revenue guarantee = $__________/a *The revenue guarantee increases if the harvest price is above the initial price guarantee