Ag Policy Blog
USDA Details on APH Exclusion
USDA's Risk Management Agency released details Thursday regarding how the Actual Production History Yield Exclusion will work.
The APH Yield Exclusion is part of the Agricultural Act of 2014 and will be available in spring for barley, canola, corn, cotton, grain sorghum, peanuts, popcorn, rice, soybeans sunflowers and wheat.
Farmers will be able to drop their APH for crops when the average yield for the county was 50% below the average for the previous 10 consecutive crop years. Effectively, exclusion can be used for a county that generated a 75 bushel per acre yield for a year when the 10-year average topped 150 pba.
If the exclusion translates into higher average yields for a producer, then that translates into a higher premium charged as well. "The premium charged will reflect the higher effective coverage level and higher risk of loss, because of the yield exclusion option," according to RMA.
“APH Yield Exclusion will provide additional options to producers who have suffered from devastating natural disasters,” said RMA Administrator Brandon Willis. “The resources made available today will help eligible producers get the most benefit out of the new protections created in the 2014 Farm Bill.”
Actual Production History Yield Exclusion Fact Sheet: http://www.rma.usda.gov/…
Actual Production History Yield Exclusion FAQs: http://www.rma.usda.gov/…
Actual Production History Yield Exclusion Overview of Premium Rating: http://www.rma.usda.gov/…
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