Crop Protection Comparison
Compare modeled crop yield and revenue protection indemnities.
Description
Crop protection models can compare yield shortfall with revenue shortfall under supplied coverage and prices.
Crop protection models can compare yield shortfall with revenue shortfall under supplied coverage and prices. These simplified indemnities use different loss bases.1
Compare modeled crop yield and revenue protection indemnities.
When to use Crop Protection Comparison
Use this tool to compare modeled crop yield and revenue protection indemnities.
Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
How to use Crop Protection Comparison and understand its results
- Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
- Enter expectedYield, actualYield, priceElection, coveragePercent, actualMarketPrice using the field table and calculation rules, then run the tool.
- Read yieldGuarantee, yieldProtectionIndemnity, revenueGuarantee, revenueProtectionIndemnity, higherIndemnityProduct. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| expectedYield | Expected crop yield | number; minimum: 0 | Required |
| actualYield | Actual crop yield | number; minimum: 0 | Required |
| priceElection | Price election | number; minimum: 0 | Required |
| coveragePercent | Coverage percentage (%) | number; minimum: 0; maximum: 100 | Required |
| actualMarketPrice | Actual market price | number; minimum: 0 | Required |
Enter nonnegative yields/prices and coverage 0–100. Return yield/revenue guarantees, both indemnities and yield, revenue or tie label.
guaranteedYield=expected×coverage/100; yieldPay=max(0,guarantee−actual)×electedPrice; revenuePay=max(0,guarantee×electedPrice−actualYield×marketPrice) Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| yieldGuarantee | Guaranteed yield | number; minimum: 0 |
| yieldProtectionIndemnity | Yield-protection indemnity | number; minimum: 0 |
| revenueGuarantee | Revenue guarantee | number; minimum: 0 |
| revenueProtectionIndemnity | Revenue-protection indemnity | number; minimum: 0 |
| higherIndemnityProduct | Higher indemnity product | string; one of "yield", "revenue", "tie" |
{
"input": {
"expectedYield": 100,
"actualYield": 60,
"priceElection": 5,
"coveragePercent": 80,
"actualMarketPrice": 4
},
"output": {
"yieldGuarantee": 80,
"yieldProtectionIndemnity": 100,
"revenueGuarantee": 400,
"revenueProtectionIndemnity": 160,
"higherIndemnityProduct": "revenue"
}
}Limitations and assumptions
No acreage, harvest-price election adjustment, actual product terms, regional rules or claim eligibility is modeled.
Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Parametric Index Payout: Calculate a parametric payout from a caller-defined trigger and cap. For a complementary task, use Trade-Credit Exposure: Estimate trade-credit portfolio exposure and covered expected loss.
References
-
Crop Protection Comparison — tool.io
Similar or alternative tools
- Parametric Index Payout
Calculate a parametric payout from a caller-defined trigger and cap.
- Trade-Credit Exposure
Estimate trade-credit portfolio exposure and covered expected loss.