Area Yield Protection

Product Booklet

Area Yield Protection (AYP) insures against widespread loss of production of your crop in a county. AYP is primarily intended for use by those producers whose farm yields tend to follow the average county yield. AYP is a county-based insurance product that pays an indemnity in the event the Final County Yield falls below the Trigger Yield you selected. Individual farm yields are not considered, so your individual farm may experience a reduced yield, but you may not receive an indemnity.

How Does It Work?

  • AYP uses county yields based on NASS data.
  • AYP pays an indemnity if the Final County Yield is below the Trigger Yield.

What Are the Benefits?

  • Flexible program that allows the producer to choose between several coverage levels and amounts of protection
  • Fits well with a full coverage crop hail policy, which provides additional individual coverages
  • Subsidized by the FCIC and protects against widespread loss of yield in a county

Downloads & Resources

Product Booklet View pricing information, guidelines and details about the plan

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Comparison Chart Compare this product to other plans

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AYP-Sample-Calculations

Additional Information

Coverage Level
AYP allows the producer to select a coverage level, ranging from 65% up to 90% in 5% increments, for each crop, type, and practice. Talk to your FMH agent or check your county actuarial for availability of coverage.

Insurance Units
Units don’t apply for county-based plans. Coverage is based on a producer’s crop, practice, and share arrangement.

Premiums
Per-acre premiums will depend on the county of the insured crop, practice, type, and the coverage levels and protection factors chosen by the producer. Higher coverage levels and protection factors result in higher premiums.

Expected County Yield
NASS or other FCIC data sources establish an Expected County Yield per acre for each crop. Planted, harvested, and unharvested acres, in addition to yield trends, are used in establishing these yields.

Trigger Revenue
(Coverage Level) x (Expected County Yield)
If the Trigger Yield is greater than the Final County Yield, then an indemnity is paid.

Payment Factor
The Payment Factor is the percentage of loss used to determine the indemnity payment.

Restrictions
Producers may not purchase AYP and other MPCI coverage for the same crop and year. AYP does not include Late Planting Coverage, Prevented Planting, Replant Provisions, unit-by-unit, or acre-by-acre coverage.

Protection Factor
The producer is allowed to select a Protection Factor, from 80% to 120% in 1% increments, for each crop, type, and practice. This factor allows the producer to customize their coverage.

Final Policy Protection
(Expected County Yield) x (Projected Price) x (Protection Factor)
This is the amount of coverage the producer purchases. The total indemnity will never exceed the Final Policy Protection.

Final County Yield
The Final County Yields are determined by NASS or other FCIC data sources. The Final County Yields are released in the spring of the year following harvest.

Projected Price
The Projected Price is determined in accordance with CEPP.

Loss Limit Factor
The Loss Limit Factor represents the percentage of the expected county revenue at which no additional indemnity amount is payable. Talk to your FMH agent or check your county actuarial for more information.