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Actual Production History (APH)
APH = Four years of actual production building to 10 years.
The APH is then a simple average of the number of years reported.
- The farmer must report ALL production.
- The 10 years may stretch back as far as needed to get 10 years of actual history. For example, if you have a rotation of crops every year, it could take up to 20 years to get 10 years of actual records.
- If the farmer does not have enough records to make up at least four years, the APH will be based on a combination of actual and county T-Yields (or a factor of).
- In one year, if the farmer’s Actual Yield is less than 60% of the county T-Yield, the farmer has the option to utilize a plugged yield for that year to help stabilize the APH if YA is elected.
- There is a 10% cup under the APH from year to year, again to stabilize the APH.
- The farmer cannot break continuity of APH from year to year without a significant yield penalty and loss of unit structure.
- To use another person’s acreage and production history, insureds must share for the current crop year. Persons who have had an SBI interest in an entity are deemed to have “shared” for purposes of qualifying to use that entity’s records for APH if they take over those acres.
- Transfer of APH data example: Son helped father farm; now takes over farming operation. There is no previous share and no other insurable interest in crop/county. Transfer of APH requires son to have participated in operation and establishment of approved APH yield, meaning he participated in management decisions; AND performed physical labor to produce the crop; OR had a share of the crop on the transferred acreage.