CACI 3903H, Economics of Damage to Annual Crop!

CACI 3903H

6 Steps to Calculate the Losses

1)Market Value Before

1. Determine the market value of the crop before it was damaged. This is the price that a willing buyer would have paid a willing seller for the crop at the time of the damage.

 

2)Market Value After

1. Determine the market value of the crop after it was damaged. This is the price that a willing buyer would have paid a willing seller for the damaged crop at the time of the damage.

 

3) Subtract the Post-Damage Market Value

1. Subtract the post-damage market value from the pre-damage market value to determine the actual loss in value of the crop.

 

 

4) Add any Reasonable Expenses

1. Add any reasonable expenses incurred in attempting to save the crop or mitigate the damages. This can include costs for labor, materials, or equipment used to salvage the crop or reduce the damage.

 

5) Subtract any Income

1. Subtract any income earned from alternative uses of the damaged crop. For example, if the damaged crop was sold for a lower price to a different market, the income earned from that sale should be subtracted from the actual loss in value of the crop.

 

 

6) Add any Lost Profits

1. Finally, add any lost profits resulting from the damage to the crop. This can include lost income from anticipated sales or lost income from the inability to plant a future crop due to the damage.

 

 

Sum Total

The total of these calculations represents the total amount of damages that should be awarded for damage to an annual crop under CACI 3903H.