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RMA Announces APH Yield Exclusion Details

The Risk Management Agency (RMA) has announced program details related to the Actual Production History (APH) Yield Exclusion provision to the 2014 Farm Bill.

The updated Information includes eligible crops, crop years and counties where producers are eligible to exclude certain yields under the new provision, a fact sheet and a list of frequently asked questions.

This information is available online on the RMA’s Farm Bill website.

The National Cotton Council sent a letter to RMA in early November with recommendations regarding this provision’s implementation. Among the recommendations accepted by RMA were:

  • RMA will use its own data as the source for determining the county yield;
  • Any counties that share a common border will be considered contiguous;
  • The provision be implemented in a manner that any additional premium would only be borne by those producers who opt for this provision;
  • Producers have the ability to reevaluate years that are excluded from their APH in future years; and
  • The new provision will not interfere with a producer choosing to use yield plugs.

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 experienced severe weather to receive a higher approved yield on their insurance policies through the federal crop insurance program.

Under the new farm law program, yields can be excluded from farm actual production history when the actuarial documents provide that the county average yield for that crop year is at least 50 percent below the 10 previous consecutive crop years’ average yield. A crop year determined eligible for exclusion for a crop in a county also will be eligible for exclusion in contiguous counties.

 

Source – National Cotton Council

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