South Dakota Crop Insurance Practice Exam

What yields are used to complete the Actual Production History (APH) when a producer has less than four years of production history?

1. Base yields

2. Reference yields

3. T yields

4. Adjusted yields

The correct answer is: T yields

The correct choice focuses on "T yields," which are utilized when a producer lacks four years of verifiable production history. T yields, or Transitional yields, are designed to provide a safety net for new or transitioning producers who may not have enough data to establish a reliable Actual Production History (APH). In situations where historical production data is insufficient, T yields allow for a standardized estimate derived from a predetermined average of yields from similar farms or from the county in which the operation is located. This ensures that producers can still access crop insurance benefits despite their limited production history, thus offering a fair and equitable opportunity to participate in the crop insurance program. While base yields, reference yields, and adjusted yields have their specific applications in crop insurance, they do not serve the same purpose as T yields for producers with under four years of production history. For instance, base yields tend to relate to historical averages over longer periods, while adjusted yields would reflect modified figures based on various risk factors or guarantees. Thus, T yields specifically cater to those who are establishing themselves in farming and need an initial basis to ensure comprehensive coverage.