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The Forage Diversification Option is available for feed crops that are not insurable under the basic forage insurance program. The program uses barley acres insured in your risk zone as a proxy for both your coverage and any claims. No adjustments will be made for individual losses on forage diversification acres.

Coverage

Your coverage per acre is based on the risk zone average yield for barley at the 80 per cent coverage option at the base price. It is offered as a dollar per acre value that varies by risk zone.

Premium

Premium is calculated from the commercial barley premium rates less the costs associated with multi-peril insurance features not included in this option. Premiums are cost-shared; producers will pay 40 per cent, while governments pay 60 per cent. There is no experience discount or surcharge.

Risk Zone	2008 Offered $ Coverage per acre	2008 Customer Premium per acre ($)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23	124 92 75 78 113 86 118 115 83 95 117 91 79 133 114 90 133 114 106 113 117 116 114	7.01 8.20 6.00 5.92 7.44 6.93 7.33 7.18 6.37 5.70 7.27 7.21 6.62 6.89 6.13 5.59 7.95 7.25 7.63 7.54 7.40 7.80 8.48

Claims

Your claim will be calculated based on the coverage and annual production on all insured barley acres in your risk zone. The risk zone loss is the difference between the total coverage of all insured barley acres at the 80 per cent coverage level and the total annual production from the same acres. Claims do not have to be filed but will be automatically calculated.

The claim rate is calculated by comparing the risk zone loss back to the total coverage.

Assume a customer in risk zone 1 would have $82/acre coverage. The table below uses data from all customers in risk zone 1 to calculate the claim.

Risk Zone 1 Customers	Acres of barley insured	Coverage adjusted to 80% coverage level (bu/ac)	Total coverage (bushels)	Actual production before grade adjustments (bu)
1	80	47	3,760	2,500
2	160	52	8,320	6,000
3	150	52	7,800	6,500
4	320	44	14,080	11,000
Total	710	-	33,960	26,000

Example

Risk zone loss = total coverage at 80% in risk zone - total yield in risk zone before grade adjustment

Claim rate = Risk Zone Loss ÷ Total Coverage at 80% in Risk Zone

Claim rate = [(33,960 - 26,000) x 100%] ÷ 33,960 = 23.4%

Total claim = $82/acres x 23.4% = $19.19/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