A single ratio applies to all marketing products activated. The two levers at this stage are the harvest futures price and the harvest yield. Any value for both may be selected and the calculator determines gains or losses from the chosen strategies. The result on the bottom line is revenue net of risk management costs. That revenue level can then be compared to the enterprise budget for the crop.
Cash is intended to match the price at a local elevator.
Next are the gains or losses from insurance tools. For both product types indemnity payments are computed based on harvest yields, then the cost of the insurance is subtracted, leaving the indemnity net of the premium. The net gains from marketing tools are then computed. Note that basis is constant, so it does not influence gains and losses here. If harvest futures price result in intrinsic value in the options, the gains are computed and the initial premium is subtracted.