Revenue Guarantee

• The  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  Revenue Guarantee divided by the Effective Pounds Covered.

Example

 Revenue Guarantee: $480,000
 Declared Milk Production: 2,000,000 lbs
 Protection Factor: 1.5x
 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 (Revenue Guarantee Cwt).

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