Trend Adjusted APH (TA)

1. Trend Adjusted APH (TA)

2. Trend Adjusted APH (TA)Availability • Available on Corn, Cotton, Grain Sorghum, Rice and Soybeans. • Excludes corn insured as silage • Excludes soybeans insured as specialty type • Excludes crops grown under organic or transitional farming practice

3. Trend Adjusted APH (TA)Availability Limited Availability: Certain counties in Texas for Corn, Cotton, Soybeans, Rice and Grain Sorghum. County Trend Adjustment Factor- set by RMA. Different factors for different crops.

4. Trend Adjusted APHExpanded Map

5. Trend Adjusted APH Cotton Counties Deaf Smith, Parmer, and south Donley, Collingsworth and south Not in Randall or Armstrong counties

6. Trend Adjusted APH Corn Counties Dallam, Sherman, Hansford, Ochiltree, Hartley Moore, Hutchinson, Carson, Gray, Deaf Smith Randall, Parmer, Castro, Swisher, Briscoe Lamb, Hale and Floyd

7. Trend Adjusted APH Grain Sorghum Counties Wheeler, Collingsworth, Childress and Donley

8. Trend Adjusted APH (TA)Am I Eligible? • To qualify, you must • Grow an eligible crop in an eligible county • Have at least one APH database with an actual yield in one (1) of the four (4) most recent crop years. • Elect Trend Adjusted APH (TA) on an application / policy change form

9. Trend Adjusted APH (TA)How Does it Work? • A trend adjustment is made to each actual yield in the database based on • The number of actual yields in the database • The year of the actual yield • The county Trend Adjustment

10. Trend Adjusted APH (TA)How Does it Work? • 1. Actual yields in the database • The percentage of the trend adjustment used is based on the number of actual yields in the previous 12 crop years within the database

11. Trend Adjusted APH (TA)How does it Work - Sample • Example: • Producer has met eligibility requirements • The database contains 4 actual yields • 4 or more = 100% of Trend Adjustment • The county Yield Adjustment found in the actuarial is 2 • The producer has 100% share on the unit • The producer chose a 70% coverage level • 100 acre unit

12. Trend Adjusted APH (TA)How does it Work Simple Example APH Database Prior to TA

13. Trend Adjusted APH (TA)How does it Work APH (150 + 193 + 176 + 197) = 716 / 4 = 179 Trend Adjusted APH (158 + 199 + 180 + 199) = 764 / 4 = 184 Bushel guarantee per acre (70%): APH: 125 TA: 129 • Simple Example – Trend Adjusted APH Calculations

14. Trend Adjusted APH (TA)More Details • Applies to actual Yields only, the following yields are not eligible for TA • New Producer T-Yields • Added Land SA T-Yields • North Dakota Personal T-Yields (PTY) • Written Agreements, except for • High Risk Land • Written Unit Agreements

15. Trend Adjusted APH (TA)More Details • Cups and Floors do not apply • Yield reductions if applicable, still apply • Excessive Yields • Inconsistent Yield Reductions • Production Method Reductions • Trend Reductions

16. Trend Adjusted APH (TA)Continuous Election • Once timely requested and applied to policy, TA is continuous unless • Cancelled in writing before applicable cancellation date • Pilot is terminated by FCIC

17. Trend Adjusted APH (TA)Cancellation • If timely cancelled • Trend adjustments to yield will no longer apply • 10% cup will not apply the initial year • Standard APH procedures will apply • Yield Substitutions and Yield floors may apply

18. Trend Adjusted APH (TA)Additional Example 4+ years of actual history In the most 12 years 100% of Trend Adjustment 2 x 100 = 2.0 All years qualify for TA

19. Trend Adjusted APH (TA)Additional Example 3 years of actual history in the most recent 12 years 75% of Trend Adjustment 2 x 75% = 1.5 T-Yield does not qualify for TA

20. Trend Adjusted APH (TA)Additional Example 2 years of actual history in most recent 12 years 50% of Trend Adjustment 2 x 50% = 1 TA applied to YA Yield in 1996

21. Trend Adjusted APH (TA)Additional Example Unit does not Qualify for TA There are no actual yields in the database

22. Trend Adjusted APH Questions