WASHINGTON, Dec. 18, 2014 – USDA’s Risk Management Agency (RMA) today released additional details of the Actual Production History (APH) Yield Exclusion program designed to give crop producers relief from severe weather and drought.
The program, which was included in the 2014 Farm Bill, allows troublesome years to be excluded from farm APH when the average county yield is at least 50 percent below the 10 previous consecutive crop years’ average yield. This prevents years when yields were much poorer than usual – such as years with a drought – from impacting their production history when calculating yields used to establish their crop insurance coverage.
The APH Yield Exclusion will be available in the actuarial documents beginning in the 2015 crop year for spring planted corn, soybeans, wheat, cotton, grain sorghum, rice, barley, canola, sunflowers, peanuts, and popcorn. It will allow eligible producers who have been hit with severe weather to receive a higher approved yield on their insurance policies through the federal crop insurance program.
“APH Yield Exclusion will provide additional options to producers who have suffered from devastating natural disasters,” RMA Administrator Brandon Willis said in a release. “The resources made available today will help eligible producers get the most benefit out of the new protections created in the 2014 Farm Bill.”
The amount of insurance available to a farmer is based on the farmer's average historical yields. In the past, a year of particularly low yields that occurred due to severe weather beyond the farmer's control would reduce the amount of insurance available to the farmer in future years. By excluding unusually bad years, farmers will not have to worry that a natural disaster will reduce their amount of insurance for years to come.
USDA will release maps showing eligible areas in the coming weeks, but producers are encouraged to check to see if their county qualifies. RMA’s fact sheet and FAQ webpage narrow down crop eligibility. Producers are encouraged to contact their crop insurance agent for information on how this program will impact their individual policies.
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