Welcome to Saskatchewan Crop Insurance - You are in Our Programs

The Variable Price Option is available for producers who want an insured price that reflects market conditions closer to the beginning of the crop year than would be the case with the base price. The
prices used under the Variable Price Option are established based on the July price forecasts for
each crop, using the same sources as are used to determine the base price for the crop. The variable price for a crop can increase or decrease by a maximum of 50 per cent in relation to the base price for the crop.

Your premium and coverage are adjusted accordingly based on the July price forecasts. You are not eligible for the Contract Price Option or Crop Averaging Program if you choose the Variable
Price Option.

This option must be selected by March 31, 2008.

*2008 insured prices for crops endorsed under the Variable Price Option will be available in July.

Example

If the base price for barley on your coverage detail is $150/T ($0.150 kg), your individual coverage is 1000 kg/acre and you selected 80% coverage, your liability would be:

Liability = 1000 kg/ac x 80% x $0.150/kg
= $120.00/acre

If your premium rate is 5% and your experience discount is 0%, your premium would be:

Premium = $120.00/acre x 5% less 0%
= $6.00/acre

The insured price is then reset in July based upon July price forecasts of final market prices. If the price increases to $160/T ($0.160 kg), your liability and premium are calculated using the new, insured price as follows:

Liability = 1000 kg/acre x 80% x $0.160/kg
= $128.00/acre

Premium = $128.00/acre x 5% less 0%
= $6.40/acre

If the insured price decreases based on the July price forecast to $100/T ($0.100/kg) your liability and premium are calculated using new insured price as follows:

Liability = 1000 kg/acre x 80% x $0.100/kg
= $80.00/acre

Premium = $80.00/acre x 5% less 0%
= $4.00/acre


©Saskatchewan Crop Insurance, Box 3000 Melville, Saskatchewan, Canada, S0A 2P0 Phone: (306) 728-7200 or 1-888-935-0000
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This page last modified 02/22/08