Yield Protection (YP) and Actual Production History (APH) are multi-peril crop insurance products that protect against losses in yield due to nearly all natural disasters. For most crops, that includes drought, excess moisture, cold and frost, wind, flood, and unavoidable 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, an indemnity is paid.
How Does It Work?
- Both plans establish a guarantee of bushels per acre.
- YP Projected Price is determined in accordance with CEPP, and APH price is established by the Federal Crop Insurance Corporation (FCIC).
- Both plans pay an indemnity if the Production to Count falls below the Yield Guarantee.
What Are the Benefits?
- Both plans offer a competitive premium
- Protect against production loss
- Based on a producer’s own production history
- Coverage levels range from 50% to 85% of the APH
- Coverage provided on basic and optional units
- Enterprise unit coverage is available in some areas
- Subsidized by the FCIC
Additional Information
Coverage Level
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.
Insurance Units
YP/APH is available for basic and optional units. Enterprise and whole-farm unit coverage is available in some areas.
Premiums
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.
Additional Coverages
Additional coverages include Late Planting Coverage, Prevented Planting, and Replant Provisions.
Production to Count
Production to Count equals harvested and appraised production from the insured acreage.
Yield Guarantee
(APH Yield) x (Coverage Level)
If the Production to Count is less than the Yield Guarantee, an indemnity is paid.
Amount of Production
(Yield Guarantee) x (Projected Price)
The Indemnity Payment per Acre will not exceed the Amount of Protection per acre.
Elected Price (APH only)
The Elected Price is calculated from the FCIC price. Based on the level of coverage selected, the producer can select an Elected Price ranging from 60% up to 100% of the FCIC price.
Elected Price Example
If FCIC price on corn is $4.00, and the producer selects the price percentage of 80%, the Elected Price coverage is $6.00 x 80% = $4.80 per bushel.