FAQ About the Actual Production History Yield Exclusion10/22/2014
Here are answers to questions about the Actual Production History (APH) Yield Exclusion provision of the 2014 Farm Bill.
Q: What is the Actual Production History (APH) Yield Exclusion?
A: The Actual Production History (APH) Yield Exclusion, a provision of the 2014 Farm Bill, allows eligible producers who have been hit with severe weather to receive a higher approved yield on their insurance policies through the federal crop insurance program.
Q: How does APH Yield Exclusion help farmers, especially those hit with drought?
A: The APH Yield Exclusion allows farmers to exclude yields in exceptionally bad years (such as a year in which a natural disaster or other extreme weather occurs) from their production history when calculating yields used to establish their crop insurance coverage. The level of insurance coverage available to a farmer is based on the farmer’s average recent yields. In the past, a year of particularly low yields that occurred due to severe weather beyond the farmer’s control would reduce the level of insurance coverage available to the farmer in future years. By excluding unusually bad years, farmers will not have to worry that a natural disaster will reduce their insurance coverage for years to come. Counties are eligible for exclusion when the county yield is at least 50 percent below the average of the previous 10 consecutive crop years.
Q: When will this go into effect?
A: APH Yield Exclusion will be available nationwide for farmers of select crops starting next spring (Spring 2015).
Q: How will it go into effect?
A: RMA will provide additional program details in December 2014. The actuarial documents that identify the county, crop, practice and crop years to be excluded will be available in December 2014.
Q: USDA said this wouldn’t be done until later. Why did you change your mind?
A: The U.S. Department of Agriculture’s (USDA) Risk Management Agency and Farm Service Agency worked hard to implement several 2014 Farm Bill programs ahead of schedule. By getting Agricultural Risk Coverage, the Price Loss Coverage, Supplemental Coverage Option and Stacked Income Protection Plan and other 2014 Farm Bill programs implemented efficiently, USDA is able to leverage data from several programs and extract the information needed to implement APH Yield Exclusion earlier than expected.
Q: What crops are impacted? Where?
A: For the 2015 crop year, the APH Yield Exclusion election is available for spring crops with a Nov. 30, 2014, contract change date. Eligible crops include corn, soybeans, wheat, cotton, grain sorghum, rice, barley, canola, sunflowers, peanuts, and popcorn. These are spring crops with Yield Protection, Revenue Protection, and Revenue Protection with Harvest Price Exclusion policies. APH Yield Exclusion is not available for crops offering both winter/fall and spring types of coverage with a June 30, 2014 contract change date. Nearly three-fourths of all acres and liability in the federal crop insurance program will be covered under APH Yield Exclusion.
Q: Is this going into effect nationwide?
A: APH Yield Exclusion will be available in counties where there is sufficient data to identify eligible crop years.
Source: USDA RMA