MASC Price
- Base $ Value
- All Crops*
Producer’s Contracted Price
- Deferred Delivery Contracts
- Basis and Flat Price Contracts
- Identity Preserved Contracts
New Blended Price
- Increased Coverage
- Improved Risk Management
- Higher Blended Price
Purpose
Over the years, producer groups have requested higher coverage for higher value crops. These higher value crops can demand a higher price from the market when sold under contract, which sometimes leaves these contracted crops underinsured.
MASC’s Contract Price Option (CPO) allows producers to blend the price from their contracted production with the base AgriInsurance dollar value to better reflect expected market prices.
*The CPO is available for most insurable crops (including forage seed, organic, and pedigreed crops, excluding potatoes, vegetables, and forages).
Estimate Rates and Coverage
Get an idea of how opting-in to CPO can affect your expected AgriInsurance premiums and coverage:
CPO Calculation Examples
Calculations |
Formulae Used |
|---|---|
Blended Price |
= (percentage of commercial production x Dollar Value) + (percentage of contract production x Contracted Price) |
New Premium |
= (standard Premium x Blended Price) / Standard Dollar Value |
Total Coverage |
= Coverage per acre x Acres |
Dollar Coverage |
= Total Coverage x Insured Price |
Scenario 1 – Multiple Contracts
A producer is growing 800 acres of canola: 320 acres at MASC’s dollar value of $650 per tonne, and is filling three separate contracts: 160 acres at $675 per tonne, 160 acres at $700 per tonne, and 160 acres at $705 per tonne. The producer selects 80 per cent coverage, which results in a premium of $12.17 per acre and a coverage per acre of 1 tonne per acre.
Total Coverage
= 800 acres x 1 tonne per acre
= 800 tonnes of canola
Contract Type |
Calculation |
|---|---|
Commercial |
= 320 of 800 tonnes |
Contract 1 |
= 160 of 800 tonnes |
Contract 2 |
= 160 of 800 tonnes |
Contract 3 |
= 160 of 800 tonnes |
Blended Price |
= (40% x $650) + (20% x $675) + (20% x $700) + (20% x $705) |
Impact on Coverage and Premium |
|
|---|---|
Conventional Coverage |
= 800 tonnes x $650 per tonne |
CPO Dollar Coverage |
= 800 tonnes x $676 per tonne |
New Premium |
= ($12.17 x $676) / $650 |
Scenario 2 – Price Premium (basis)
A producer is growing 800 acres of red spring wheat: 640 acres at MASC’s dollar value of $290 per tonne, and is filling a separate contract on 160 acres at $390 per tonne ($100 above the base price). The producer selects 80 per cent coverage with a premium of $12.17 per acre and a coverage of 1 tonne per acre.
Total Coverage
= 800 acres x 1 tonne per acre
= 800 tonnes of wheat
Production Ratio |
|
|---|---|
Commercial |
= 640 of 800 tonnes |
Contracted |
= 160 of 800 tonnes |
Blended Price |
= (80% x $290) + (20% x $390) |
Impact on Coverage and Premium |
|
|---|---|
Conventional Coverage |
= 800 tonnes x $290 per tonne |
CPO Dollar Coverage |
= 800 tonnes x $310 per tonne |
New Premium |
= ($12.17 x $310) / $290 |
Scenario 3 – Different Soil Zones
A producer is growing 800 acres of canola: 480 acres at MASC’s dollar value of $650 per tonne on a soil zone that has a coverage per acre of 1.00, and is also filling two contracts: Contract 1 is for 160 acres at $680 per tonne on C32 soil (Probable Yield (PY) = 0.986), and Contract 2 is for 160 acres at $705 per tonne on E32 soil (PY = 0.956).
Total Coverage
= (480 acres x 1.00 tonne per acre) + (160 acres x 0.986 tonnes per acre) + (160 acres x 0.956 tonnes per acre)
= 480.00 tonnes + 157.76 tonnes + 152.96 tonnes
= 790.72 tonnes of canola
Production Ratio |
|
|---|---|
Commercial |
= 480.00 of 790.72 tonnes |
Contract 1 |
= 157.76 of 790.72 tonnes |
Contract 2 |
= 152.96 of 790.72 tonnes |
Blended Price |
= (61% x $650) + (20% x $680) + (19% x $705) |
Impact on Coverage and Premium |
|
|---|---|
Conventional Coverage |
= 790.72 tonnes x $650 per tonne |
CPO Dollar Coverage |
= 790.72 tonnes x $666.45 per tonne |
New Premium |
= ($12.17 x $666.45) / $650 |
Opt-in to Contract Price Option
Farmers who choose the Contract Price Option must submit their contracted prices to MASC by June 30. Contact your insurance specialist to get started.
Select a CPO Crop
Enter the legal land description of an acreage where you’re growing a CPO crop, then click/tap the Search button to proceed.
In this section, review your selected acreage, then click/tap the Select a Crop drop-down and choose your CPO-eligible crop.
Input the field acres you are growing on this acreage, and then click/tap Select Coverage for this Crop to proceed to the next section.
Select AgriInsurance Coverage
Coverage selection will appear after choosing a crop.
All Selected Fields
Input Your Contracts
After selecting fields, click Input Your Contracts to begin.