Individual Production Guarantees

Actual Production History (APH) (The original MPCI plan)

• It uses an average of your crop production for a minimum of 4 years and a maximum of 10 years.
• You may qualify to use another’s records if you have they have a share in the crop or if you qualify as a successor-in-interest.
• If 4 years of production records are not available, we must use variable T-yields. (Transitional yields) These are in the actuarial documents for each county.
• If you have kept no production records, you will have to start with an APH of 65% of the T-yield.
  • With one year of records, producer can use 80% of the T-yield.
  • With two years, 90% of the T-yield.
  • With three years, 100% of the T-yield.
  • With four years of production, take the simple average of the four years of production.

• T-yield = 140 Bu./acre
• No records = 91 Bu./acre (65% x 140)
• One year = 112 Bu./acre (80% x 140)
• Two years = 126 Bu./acre (90% x 140)
• Three years = 140 Bu./acre

• APH (160) x Level (80%) = Guar./Acre (128 bushels)
• Guar./Acre (128) x Acres in Unit (100) = Unit Coverage (12,800)
• Price Election ($4.00) x Guar./Acre (128) = Covg./Acre ($512.00)

• Actual production = 100 Bu./acre (10,000 Bu. Farm Total)
• Acres = 100
• Bushel Loss = 2,800 (12,800 Bu. – 10,000 Bu.)
• Indemnity = $11,200 (2,800 x $4.00)