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| When you "buy down" or "up" the price, it is a linear equation. The more you pay, the more the payment proportionally. If you have a year when GRIP pays, the more you buy (price) the more the payment. If the premium at 100% = $10, and you buy down 60% of price, the premium will also be 60%, or $6. If the 100% policy would pay $100 per acre, then the $6 policy will pay ;$60 /acre.
Of course, if GRIP doesn't pay that year, it will be better to buy it down (or buy nothing).
Rob | |
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Putting things in perspective:
