What does the Actual Production History Plan (APH) insure against?

The Actual Production History (APH) Plan insures against loss in yield. This type of insurance is designed specifically to protect farmers from the financial impact of decreased crop production due to various factors such as adverse weather conditions, natural disasters, pests, or diseases. Under the APH plan, a farmer's historical production records are used to determine the amount of insurance coverage, which reflects the average yield from past crop years.

This plan allows producers to receive compensation when their actual yield falls below a predetermined level based on their own historical yield data. The focus on yield loss is crucial, as it directly impacts the farmer's ability to produce and sell their crops, thus affecting their overall income and financial stability.

Loss in price, input costs, and marketability pertain to different aspects of agricultural risk management but are not covered under the APH plan. For instance, the risk of price loss is typically addressed by other types of insurance or market-based strategies, while input costs and marketability involve operational and marketing decisions rather than production outcomes.