South Dakota Crop Insurance Practice Exam

If growers have no production records at all, what yield percentage of the T yield is assigned as their APH yield?

1. 50%

2. 65%

3. 75%

4. 80%

The correct answer is: 65%

In the context of crop insurance, when growers lack any production records, the Adjusted Production History (APH) yield is calculated based on a standard percentage of the T yield, or Transitional Yield. The purpose of assigning a yield percentage is to provide a baseline for growers who may be new to an area or who have not kept production records in the past. The correct yield percentage assigned for growers with no production records is 65% of the T yield. This percentage serves as a balanced approach, ensuring that growers receive an average level of coverage without penalizing them for the lack of documentation. It reflects an effort to balance risk management in crop insurance while still providing some level of protection for farmers starting out or transitioning into new crops or regions. This percentage is particularly important for maintaining fair insurance practices, ensuring that all growers can participate in the crop insurance program and receive some level of protection against potential losses, even in the absence of historical yield data.