Grain Volume Coverage AvgShpmnts Average industry shipments in past five years(in tons) Shpmnts,=industry shipments in year t If Shpmnts, Avg Shpmnts, then a loss occurs > Magnitude of loss= $25*(15%)*( AvgShpmnts ShpmntS) Coverage depends on loss subject to retentions and imits17 Grain Volume Coverage AvgShpmnts = Average industry shipments in past five years (in tons) Shpmntst = industry shipments in year t If Shpmntst < AvgShpmnts, then a loss occurs Magnitude of loss = $25 * (15%) * ( AvgShpmnts – Shpmntst ) Coverage depends on loss subject to retentions and limits