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Minimum Expected Sale Price Calculator
MESP = Coverage Price – Premium Cost To Producer + Expected LRP Basis
Coverage Price This is the minimum price level actually covered with LRP insurance. This price is on the Specific Coverage Endorsement. Old coverage prices can be found on RMA’s LRP pricing page. Select the correct date, state, commodity, and type of livestock.
Premium The producer’s premium cost for purchasing LRP insurance. The total premium price is found on the Specific Coverage Endorsement. Old premium costs are located on RMA’s LRP pricing page. Remember to multiply premium prices on the LRP pricing page by 87% to find the producer premium after subsidy. which should be entered above.
Expected LRP Basis Expected LRP basis for the state in which the livestock will be sold. This is an expectation of the difference between Actual Ending Value and the local cash market in which the livestock are sold. To estimate expected LRP basis, choose the LRP basis price series which most closely represents the local cash market where the livestock will be sold. Find the week of the year when the livestock are expected to be sold. The average (3 or 4 year) LRP basis for that week of the year will be reported along with the minimum and maximum for that period and can be used as the expected LRP basis in the table above.
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