Quick Update on 2023/2024 ERP Estimator
We updated the calculator, and this might increase the estimated payment amount in certain situations.
In our post with a webinar regarding 2023 and 2024 ERP, we noticed that we were using the “wrong” harvest price. We were using the greater of the harvest or discovery price for the harvest price. Since this number was higher for both 2023 and 2024, it overstated harvest revenue.
When you applied higher harvest revenue for both the original coverage level and then applied it based on the “ERP” coverage level the actual estimated payment amount could be understated.
This only happened if there was no crop insurance received in 2023 or 2024. Otherwise, if there was a crop insurance indemnity received in either year, then the final ERP estimate is exactly the same since essentially the math is simply calculating the difference between the old coverage level and the new coverage level.
We ran several calculations assuming different APHs and harvest yields and there was no difference in the estimated ERP payment amounts assuming there was at least $1 of crop insurance received in either 2023 or 2024.
We are providing an updated webinar that you can review here: