Actual Production History

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Actual Production History (APH)

APH policies insure producers against a loss of their production due to natural causes such as drought, excessive moisture, hail, wind, frost, insects and disease.

Deficient bushels are paid based on the price established by RMA called the Established Price. Occasionally, RMA will release a higher price after the established price has been released called an “Additional Price” to reflect changes in the market place. Both prices will be posted in the actuarial documents.

Coverage Levels

The grower elects to insure a percentage of their historical average known as the Approved APH. Coverage levels available range from: 50% to 75% (80% & 85% levels are available for some crops) in 5% increments. Some crops allow for separate coverage levels by type or irrigation practice.

Price Election

The producer can elect to insure less than 100% of the Established Price on certain crops. Available Price Election percentages include:

Coverage LevelCAT5055606570758085
% of Price5510091-10084-10077-10072-10067-10063-10059-100

Prevented and Replant Coverage

The policy provides for coverage for Prevented Planting and Replant Coverage; however, the Crop or Special Provisions may modify or eliminate the coverage

Units

Indemnities are calculated on each unit as elected by the grower. Unit structures available under the APH policy are as follows:

  • Optional Units (OU)
  • Basic Units (BU)
  • Enterprise Units (EU - not available for all crops)

Example

The policy indemnifies the insured if the production for the unit is less than the Production Guarantee. Both the Production Guarantee and the Production to Count (production harvested or appraised) are based upon 100% of the Approved Actual Production History (APH) and 100% of the production harvested. The producer’s share of the crop is not taken into account until the total indemnity has been calculated.

Policy Information

Approved APHCoverage LevelEstablished PricePrice ElectionAcresShareFinal Production to Count
10085%$3100%20050%14,00

Value of Production Guarantee

100 x 85% x $3 x 100% x 200 = $51,000

Value of Production to Count

14,000 x $3 x 100% x = $42,000

Indemnity Calculation

$51,000 - $42,000 = $9,000 x 50% share = $4,500