Effective Revenue Guarantee

  • The Effective Revenue Guarantee dollar amount is the amount of revenue that endorsement is protecting based off the Class or Component prices protected.
  • The per cwt price is the Effective Revenue Guarantee divided by the Effective Pounds Covered

Example

Effective Revenue Guarantee: $480,000 
Effective Pounds Covered (declared covered milk production x protection factor) = 3,000,000 (30,000 cwt's) 
Per cwt price = $480,000 / 30,000 cwt's = $16.00 (Effective Revenue Guarantee Cwt).

* Price per cwt is rounded to the nearest 1/100

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