When it comes to crop insurance, the strength of your coverage depends not only on the type of policy you choose but also on how your farm’s expected yield is calculated. One of the key tools used to determine this is Actual Production History (APH).
APH is a cornerstone of many crop insurance programs in the United States. It provides an individualized, farm-level measure of a producer’s average yields, helping insurance providers determine how much loss the policy should cover. Whether you're insuring corn in Iowa or peaches in Georgia, understanding how APH works can help you make better decisions about protecting your farm.
What Is Actual Production History?
Actual Production History (APH) refers to a rolling 4- to 10-year record of a farmer’s historical yields for each insured crop in a specific area. This historical yield data becomes the benchmark used by insurers to determine how much production you should be able to achieve in a normal year.
The APH yield serves as the foundation for calculating:
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The amount of coverage you can purchase
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How much of a loss is covered in a bad year
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What your indemnity payments will look like if something goes wrong
The more years of consistent yield data you have, the more accurate and reliable your APH becomes.
Why APH Matters
APH is important because it tailors your crop insurance coverage to your specific operation, rather than using a county or state average. This means that if you've been getting strong yields over the years, you can insure based on that performance. On the other hand, if you've had erratic or low yields, your coverage limits will reflect that as well.
In this way, APH incentivizes good management practices while giving you credit for years of solid production.
How It Works
Let’s say you’re growing grain sorghum, and you’ve kept detailed records of your yields for the past 10 years. Your average yield over that time is 90 bushels per acre. That number becomes your APH yield.
Now, when you select a multi-peril crop insurance policy, like Yield Protection (YP) or Revenue Protection (RP), you can choose a coverage level—say 75% of your APH yield.
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APH yield: 90 bushels/acre
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Coverage level: 75%
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Insured yield: 90 × 0.75 = 67.5 bushels/acre
If a drought hits and you only harvest 50 bushels per acre, your indemnity payment would be based on the difference between 67.5 and 50 bushels, multiplied by the policy’s price election.
What If You Don’t Have 10 Years of Data?
Not every farmer has a decade of yield history, especially beginning farmers or those planting a crop for the first time. In these cases, the USDA Risk Management Agency allows the use of:
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Transitional yields (T-yields) based on county averages
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Blended yields (a mix of actual and transitional yields) for the years where production records are missing
Over time, as more data is collected from your farm, those transitional yields are replaced with your actual numbers, making your APH more personalized and accurate.
How to Maintain APH Records
To maintain an accurate APH, you must:
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Keep detailed, verifiable records of yield for each crop and unit
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Submit this information to your crop insurance agent annually
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Store supporting documents (scale tickets, bin measurements, etc.) in case of audits
Good recordkeeping is essential, especially if you want to qualify for higher coverage levels or avoid penalties for yield reporting errors.
Example in Practice
Maria grows peanuts in southern Georgia. Over the past eight years, she’s kept excellent production records. Her average yield is 4,200 pounds per acre. She purchases a Revenue Protection policy at 80% coverage.
In a bad year, a flood reduces her yield to 3,000 pounds per acre. Her APH yield (4,200) multiplied by her coverage level (80%) gives her an insured yield of 3,360 pounds per acre. Since she harvested below that, she’s eligible for an indemnity payment based on the 360-pound-per-acre shortfall.
Because her APH is strong, she’s able to insure a greater portion of her potential income, offering more financial security.
Final Thoughts
Actual Production History plays a critical role in determining how much protection a farmer gets from crop insurance. It reflects your farm’s actual performance, rewards good management, and provides a customized benchmark that can make insurance both fair and effective.
If you’re considering crop insurance or already have a policy in place, keeping accurate yield records and understanding how APH is calculated will help ensure you’re getting the most out of your coverage.
For more information about APH and crop insurance policies, visit the USDA Risk Management Agency website at www.rma.usda.gov, or speak to an approved crop insurance agent.
