CROP INSURANCE EXCLUSIONS:
What are the benefits of APH Yield Exclusion? Using the APH Yield Exclusion, when applicable, will remove a poor performing crop year from your 10-year production average, preventing it from lowering your production history and potentially adversely affecting your coverage. When are crop years eligible for the APH Yield Exclusion? Crop years are eligible for APH exclusions when the average per planted acreage yield for the county was at least 50 percent below the simple average for the previous 10 consecutive years. A crop year determined eligible for exclusion for a crop in a county will also be eligible for exclusion in contiguous counties, as identified in the actuarial documents. What data is used to determine yields?
YIELD EXCLUSIONS Changes to the crop insurance provision of the 2014 Farm Bill allows farmers with qualifying crops in eligible counties to exclude low yields in exceptionally bad years from their production history when calculating yields used to establish crop insurance coverage. This provision is the Actual Production History (APH) Yield Exclusion (YE). Understanding how the exclusions impact your coverage is important when determining your crop insurance coverage. The following addresses frequent questions to the APH YE.
The Risk Management Agency (RMA) is the primary data source for determining the average per planted acre yield for the county and the simple average for the previous 10 consecutive crop years, if sufficient data exists. If RMA data is not sufficient, National Agriculture Statistics Service (NASS) is used. An online map viewing tool is provided on RMA’s website to help identify eligible crop years in one or more counties for producers’ crops and irrigation practice. How does the APH Yield Exclusion impact premiums? Electing APH YE will likely have higher approved yields and increased insurance coverage. These increases will likely result in a higher premium rate to account for the increased risk of loss. What crops are eligible? Eligible crops and crop years for exclusion will be identified in the actuarial documents. The number of eligible crops has been expanded since 2015. Producers who have either Catastrophic Risk Protection or buy-up insurance policies can use this program. Partners — Winter 2018
34