South Dakota Crop Insurance Practice Exam

For a farmer with no previous records, what is the APH yield based on?

1. Previous claims

2. Average county yield

3. Federal minimum standards

4. Assigned T yield

The correct answer is: Assigned T yield

The Actual Production History (APH) yield for a farmer with no previous records is based on the Assigned T Yield. This measure is used to establish a baseline for insurance purposes in situations where the farmer does not have their own production history to reference. The Assigned T Yield is determined by the risk management agency and typically reflects the average yields in the county or area for similar crops. This approach allows farmers to still obtain coverage and ensures that they have a yield figure that insurers can use to calculate potential indemnities in the event of a loss. It helps maintain equity among farmers without production records by relying on historical data from their region. In contrast, the other options involve either past claims, which would not apply to this farmer with no records, or rely on broader averages that might not necessarily pertain directly to the specific situation of the farmer. Thus, the Assigned T Yield is the most appropriate and relevant basis for determining the APH yield in such cases.