Yield Protection (YP) and Actual Production History (APH) are multiple-peril crop insurance products that provide protection against losses in yield due to nearly all natural disasters. For most crops that includes drought, excess moisture, cold and frost, wind, flood, and avoidable damage from insects and disease. These products guarantee a yield based on an individual producer’s actual production history. If the production to count is less than the yield guarantee, the indemnity is paid.
How Does It Work?
- Establishes a guarantee of bushels per acre
- YP Projected Price is determined by futures contracts, and APH price is established by the Federal Crop Insurance Corporation (FCIC)
- Pays an indemnity if the production to count falls below the yield guarantee
Coverage level is the percentage of APH yield selected by the producer. The producer can select a coverage level of the APH yield ranging from 50% up to 85% in 5% increments. A higher yield election increases the yield guarantee.
- Basic: All insurable acreage of the insured crop in the county in which you have a 100% crop share or owned by one person and operated by another person on a share basis.
- Optional: A division of the basic unit structure if each optional unit is located in a separate section and there is a discernible break in the planting pattern and separate production records are proven.
- Enterprise: Two or more sections with planted acres. See Basic Provisions for additional requirements.
- Whole Farm: All insurable acreage of the insurable crops in the county. The insurable acreage must contain at least two or more crops.
Per-acre premiums will depend on the county of the insured crop, unit structure, the crop’s APH yield, and price elections. Higher coverage levels and higher elected prices result in higher premiums.
- Late Planting Coverage: May provide additional time to plant crops when conditions prevent timely planting.
- Prevented Planting: May allow for payments when insurable causes of loss prevent you from planting your crops.
- Replant Provisions: May provide an additional payment for the extra expenses involved when it is practical to replant and the acreage qualifies.