The APH plan of insurance provides the producer protection against a loss of production due to nearly all unavoidable, natural occurring events. For most crops, that includes drought, excess moisture, cold and frost, wind, flood and unavoidable damage from insects and disease. This plan of insurance guarantees the producer a yield based on their production history, which is why it is called the APH plan.
The guarantee is calculated by multiplying their average yield by the level of coverage elected for the producer’s share of the crop. An indemnity may be due if the production (harvested and appraised) is less than the guaranteed amount.
The pricing for most crops insured under the APH plan of insurance is established by RMA.
Many of our perennial crops such as apples, peaches and grapes fall under the APH plan, as well as crops that do not have revenue coverage available. Some grain crops such as oats, rye, flax and buckwheat are also covered under the APH plan of insurance.