Area Yield Protection (AYP)
AYP is available in select counties and states for the following crops: barley, corn, cotton, forage production, grain sorghum, peanuts, rice, soybeans, and wheat.
The guarantee and final production are based solely upon the performance of the yields countywide and do not reflect what happened on the grower’s farm. The insured could have a loss on their farm and not receive a payment if the county did not experience a loss. Vice versa, a grower could receive a payment if the county had a loss even if they did not experience a loss on their operation.
AYP provides a payment if the final yield for the county is less than the trigger yield elected by the insured. AYP uses a price that is established by averaging a futures contract price from a board of trade over a given period of time known as the “Discovery Period”. This price is called the “Projected Price” and the parameters outlining the futures contract, board of trade and discovery period can be found in the Commodity Exchange Price Provisions (CEPP).