1. Your crop
2. Contracts signed or offered
| Buyer | Bushels | Act of God clause? |
|---|
3. Your SellCeiling
4. Stress test: what if the last 10 years happened to this contract book?
Method: ceiling = lower of (bad-year production from the RM yield history at your chosen odds) and (crop-insurance guaranteed bushels, estimated as long-term average × coverage). Contracts with an Act of God clause are treated as carrying no shortfall risk. Buyout = shortfall × (replacement price above contract + admin fee).