What does the actual production history (APH) plan protect against?

The actual production history (APH) plan is primarily designed to protect against losses in yield. This type of crop insurance is based on an insured farmer's historical production records and is intended to safeguard against the risk of reduced crop yields due to various factors such as adverse weather conditions, pests, or diseases. By assessing past production records, the APH plan calculates an average yield that serves as a benchmark. If actual yields fall below this average during a coverage period, the policy provides financial assistance to help farmers cope with the impacts of those reduced yields.

This focus on yield loss distinguishes the APH plan from other forms of insurance that may cover different types of risks, such as revenue loss, increased production costs, or fluctuations in market prices. These other risks are addressed by different types of crop insurance policies, highlighting the specific role of the APH plan within the broader crop insurance landscape.