South Dakota Crop Insurance Practice Exam

The T yield is based on what type of data?

1. Current yield data

2. Historical county data

3. Producer's average yield

4. Projected yield data

The correct answer is: Historical county data

The T yield, or Transitional yield, is fundamentally rooted in historical county data. This metric is used in the context of crop insurance to ensure that farmers in counties with sporadic production experience fair insurance coverage, even if they have limited personal production history. The T yield is calculated using the average yield of similar crops produced in a specific county over a determined number of years. This historical data provides a reliable basis for establishing benchmarks for yield expectations, particularly in areas where production data may not be robust or consistent. By utilizing county-wide averages, the T yield offers a safety net for producers, helping to level the playing field when assessing risk and compensation in the event of crop failure. Current yield data, individual producer averages, and projected data pertain to other metrics and do not capture the broader historical context that the T yield relies upon. The significance of using historical county data lies in its ability to incorporate a comprehensive view of yields over time, reflecting both good and poor production years.