How is revenue calculated under the Area Revenue with Harvest Price Exclusion?

Under the Area Revenue with Harvest Price Exclusion, revenue is calculated by using the county yield multiplied by the Projected Price. This method focuses on the projected prices that are set at the beginning of the growing season rather than adjusting for higher prices that might be available later during harvest.

This approach stabilizes the calculations and aligns them with the established projections, providing a consistent basis for insurance payouts. The emphasis on the Projected Price helps ensure that the calculations do not fluctuate based on harvest time market variations, thus safeguarding the revenue expectations from significant price volatility.

In this insurance type, the determination focuses on what was anticipated at the outset of the season rather than what might occur later, which can be especially comforting for farmers when planning their budgets and expectations.