Effective Pounds Covered
- The Effective Pounds Insured is the quarterly amount of milk pounds the producer insured (declared production x protection factor)
Example
Effective Pounds Insured = declared pounds x protection factor 2,000,000 declared lbs. x 1.5 protection factor = 3,000,000 Effective Pounds Insured. *Effective Pounds Insured is rounded to the nearest pound.