AGR & AGR-L Indemnity Calculation - Exhibit 151-3

June 28, 2007

Exhibit 151-3

FCIC-Appendix III

ADJUSTED GROSS REVENUE (AGR)/LITE (AGR-L)
INDEMNITY CALCULATIONS
Edit Description

Adjusted Gross Revenue (AGR)/Lite (AGR-L)
(Insurance Plan Codes 63 & 61)

INDEMNITY CALCULATION
EXPENSE_PERCENT = EXPENSE_INS_YEAR / APPROVED EXPENSE
(field 12)
(field 11)
(Internal)
EXPENSE_RED_PERCENT = 70% - EXPENSE_PERCENT
(field 13)
(field 12)
EXPENSE_RED_AMOUNT = EXPENSE_RED_PERCENT * APPROVED AGR
(field 14)
(field 13)
(Internal)
ADJ_AGR_EXPENSE = APPROVED AGR - EXPENSE_RED_AMOUNT
(field 15)
(Internal)
(field 14)
REVENUE_GUARANTEE = ADJ_AGR_EXPENSE * COVERAGE LEVEL
(field 16)
(field 15)
(Internal)
ADJ_REVENUE_COUNT = REVENUE_COUNT ( + / - ) INVENTORY ( + / - ) ACCOUNT_RECEIVABLE
(field 20)
(field 17)
(field 18)
(field 19)
REVENUE_DEFICIENCY = REVENUE_GUARANTEE - ADJ_REVENUE_COUNT
(field 21)
(field 16)
(field 20)
INDEMNITY_AMOUNT = REVENUE_DEFICIENCY * PAYMENT RATE
(field 22)
(field 21)
(Internal)

FCIC-APPENDIX III

151-3 - 1

RY 2008

June 28, 2007

Exhibit 151-3

FCIC-Appendix III

ADJUSTED GROSS REVENUE (AGR)/LITE (AGR-L)
INDEMNITY CALCULATIONS
Edit Description

Tag

No.
11

Picture
9(10)

Rounding
whole dollar

Description
Expenses for Insurance Year as
reported on the indemnity worksheet.

APPROVED EXPENSE

Internal

9(10)

whole dollar

Approved Expenses is the value
submitted and accepted under the
Premium Section.

12

9.9999

nearest 3rd
decimal place

Expense Percentage is the result of
expenses for insurance year divided
by approved expenses.

13

.9999

3 decimal places

Expense Reduction Percentage is the
result of 70% minus expense percent.

APPROVED AGR

Internal

9(10)

whole dollar

Approved AGR is the value submitted
and accepted under the Premium
Section.

14

9(10)

whole dollar

Expense Reduction Dollar Amount is
the result of expense reduction
percentage times approved AGR.

15

9(10)

whole dollar

Adjusted AGR for Expenses is the
result of approved AGR minus
expense reduction dollar amount.

COVERAGE LEVEL

Internal

9.999999

none

Coverage Level submitted and
accepted under the Crop Policy
Section.

16

9(10)

whole dollar

Revenue Guarantee is the result of
adjusted AGR for expenses times
coverage level.

17

9(10)

whole dollar

Revenue to Count for the insurance
year as reported on the indemnity
worksheet.

18

9(10)
(+/-)

whole dollar

Inventory Adjustment is the total
dollar value of inventory
adjustment(s) made for the current
insurance year as reported on the
indemnity worksheet. Only the
negative symbol ( - ) will appear if
applicable.

FCIC-APPENDIX III

151-3 - 2

RY 2008

June 28, 2007

Exhibit 151-3

FCIC-Appendix III

ADJUSTED GROSS REVENUE (AGR)/LITE (AGR-L)
INDEMNITY CALCULATIONS
Edit Description

Tag

No.
19

Picture
9(10)
(+/-)

Rounding
whole dollar

Description
Accounts Receivable Adjustment is
the total dollar value of adjustment(s)
made to accounts receivable for the
current insurance year as reported on
the indemnity worksheet. Only the
negative symbol ( - ) will appear if
applicable.

20

9(10)
(+/-)

whole dollar

Adjustment to Revenue to Count is
the sum of revenue to count,
inventory, and accounts receivable.
Only the negative symbol ( - ) will
appear if applicable.

21

9(10)

whole dollar

Revenue Deficiency is the result of
revenue guarantee minus adjustment
to revenue to count. If negative
amount, enter zero.

PAYMENT RATE

Internal

9.9999

none

Payment Rate submitted and accepted
under the Premium Section.

22

9(10)

whole dollar

Indemnity Amount is the result of
revenue deficiency times payment
rate. Cannot be negative or greater
than adjusted AGR for coverage level
times payment rate.

FCIC-APPENDIX III

151-3 - 3

RY 2008