Actual Production History

Processing Login

GO

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 Level CAT 50 55 60 65 70 75 80 85
% of Price 55 100 91-100 84-100 77-100 72-100 67-100 63-100 59-100

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 APH Coverage Level Established Price Price Election Acres Share Final Production to Count
100 85% $3 100% 200 50% 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