Crop Insurance

Actual Production History (APH) is a 4- to 10-year yield average used to calculate each producer’s production guarantee. Producers with 10 years of yield history are penalized under APH because yields have increased over time, and APH yields can lag behind their most recent yields. Therefore producers with only 4 years of yield history can actually have higher average yields. Authors: Paul Goeringer and Lori Lynch; Title: Trend-Adjusted Yield Option Introduced for Crop Insurance (FS-970)

The Risk Management Agency (RMA) under the United States Department of Agriculture (USDA) promotes, supports, and regulates risk management solutions for America’s agricultural producers by providing federal crop insurance programs. In addition, the agency provides education and outreach programs in risk management. The RMA develops the premium rate, administer premium and expense subsidy, approve and support products, and reinsure private sector companies via Federal Crop Insurance Corporation (FCIC).