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How is the gross margin guarantee calculated for each insurance period?

April 26, 2017calculated gross guarantee Insurance margin period

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How is the gross margin guarantee calculated for each insurance period?

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The gross margin guarantee for each coverage period is calculated by subtracting the per head deductible times total number of swine to be marketed from the expected total gross margin for the applicable insurance period. If our example producer has a $10 per head deductible, the gross margin guarantee equals $450 [$550 (10 x $10)].