Trend Adjusted APH(TA)

Trend Adjusted APH (TA)Availability

Available on Corn, Cotton, Grain Sorghum, Rice and Soybeans.– Excludes corn insured as silage– Excludes soybeans insured as specialty type– Excludes crops grown under organic or transitional

farming practice

Trend Adjusted APH (TA)Availability

Limited Availability: Certain counties in Texas for Corn, Cotton, Soybeans, Rice and Grain Sorghum.

County Trend Adjustment Factor- set by RMA. Different factors for different crops.

Trend Adjusted APHExpanded

Map

Trend Adjusted APH

Cotton CountiesDeaf Smith, Parmer, and southDonley, Collingsworth and south

Not in Randall or Armstrong counties

Trend Adjusted APH

Corn CountiesDallam, Sherman, Hansford, Ochiltree, HartleyMoore, Hutchinson, Carson, Gray, Deaf SmithRandall, Parmer, Castro, Swisher, BriscoeLamb, Hale and Floyd

Trend Adjusted APH

Grain Sorghum Counties

Wheeler, Collingsworth, Childress and Donley

Trend Adjusted APH (TA)Am I Eligible?

To qualify, you must– Grow an eligible crop in an eligible county– Have at least one APH database with an actual yield in

one (1) of the four (4) most recent crop years.– Elect Trend Adjusted APH (TA) on an application /

policy change form • By the applicable Sales

Closing Date• On a Crop / County

basis

Trend Adjusted APH (TA)How Does it Work?

A trend adjustment is made to each actual yield in the database based on1. The number of actual yields in the database2. The year of the actual yield3. The county Trend Adjustment

Trend Adjusted APH (TA)How Does it Work?

1. Actual yields in the database– The percentage of the trend adjustment used is

based on the number of actual yields in the previous 12 crop years within the database

Number of Actual Yields in Database

Percentage of Trend Adjustment allowed

1 25%2 50%3 75%

4 or more 100%

Trend Adjusted APH (TA)How does it Work - Sample

Example:– Producer has met eligibility requirements – The database contains 4 actual yields– 4 or more = 100% of Trend Adjustment– The county Yield Adjustment found in the actuarial is 2– The producer has 100% share on the unit– The producer chose a 70% coverage level– 100 acre unit

Trend Adjusted APH (TA)How does it Work

Simple Example APH Database Prior to TA

Year Production Acres Yield YieldDesc

2008 22500 150 150 A2009 19300 100 193 A2010 26400 150 176 A2011 19700 100 197 A

Approved APH 179 Average Yield 179 Rate Yield 179

Trend Adjusted APH (TA)How does it Work

Simple Example – Trend Adjusted APH CalculationsCurrent

Crop Year

-Actual

Yield Crop Year

= Multiplier XTrend

Adjustment =Adjusted

Trend Adjustment

+Actual Yield =

Trend Adjusted

Yields

2012 - 2008 = 4 x 2 = 8 + 150 = 158

2012 - 2009 = 3 x 2 = 6 + 193 = 199

2012 - 2010 = 2 x 2 = 4 + 176 = 180

2012 - 2011 = 1 x 2 = 2 + 197 = 199

APH (150 + 193 + 176 + 197) = 716 / 4 = 179 Trend Adjusted APH (158 + 199 + 180 + 199) = 764 / 4 = 184Bushel guarantee per acre (70%): APH: 125 TA: 129

Trend Adjusted APH (TA)More Details

Applies to actual Yields only, the following yields are not eligible for TA– New Producer T-Yields– Added Land SA T-Yields– North Dakota Personal T-Yields (PTY)– Written Agreements, except for

• High Risk Land• Written Unit Agreements

Trend Adjusted APH (TA)More Details

Cups and Floors do not applyYield reductions if applicable, still apply– Excessive Yields– Inconsistent Yield Reductions– Production Method Reductions– Trend Reductions

Trend Adjusted APH (TA)Continuous Election

Once timely requested and applied to policy, TA is continuous unless– Cancelled in writing before applicable cancellation

date– Pilot is terminated by FCIC

Trend Adjusted APH (TA)Cancellation

If timely cancelled– Trend adjustments to yield will no longer apply– 10% cup will not apply the initial year– Standard APH procedures will apply– Yield Substitutions and Yield floors may apply

Trend Adjusted APH (TA)Additional ExampleYear Production Acres Yield Yield

Desc Trend Adjusted Yield

Calculation2002 19950 150 133 A 133 + 20 = 153 TA2003 14500 100 145 A 145 + 18 = 163 TA2004 25050 150 167 A 167 + 16 = 183 TA2005 12200 100 122 A 122 + 14 = 136 TA2006 23550 150 157 A 157 + 12 169 TA2007 16500 100 165 A 165 + 10 175 TA2008 25650 150 171 A 171 + 8 179 TA2009 19300 100 193 A 193 + 6 199 TA2010 26400 150 176 A 176 + 4 180 TA2011 19700 100 197 A 197 + 2 199 TA

T-Yield = 130 Trend Adjustment Limitation = 199 (197+2)

Approved Yield 174 TA 174 Average Yield 163 Rate Yield 163

4+ years ofactual history In the most 12 years

100% of TrendAdjustment

2 x 100 = 2.0

All yearsqualify for TA

Trend Adjusted APH (TA)Additional Example

Year Production Acres Yield YieldDesc

Trend Adjusted Yield Calculation

2003 130 T 130 + N/A = 130 2004 Z 2005 Z 2006 11600 80 145 A 145 + 9 = 154 TA2007 Z 2008 Z 2009 12160 80 152 A 152 + 4.5 = 156.5 TA2010 Z 2011 11840 80 148 A 148 + 1.5 = 149.5 TA

T-Yield = 130 Trend Adjustment Limitation = 154

Approved Yield 148 TA 148 Average Yield 144 Rate Yield 144

3 years ofactual history inthe most recent12 years

75% of TrendAdjustment

2 x 75% = 1.5

T-Yield does not qualify for TA

Trend Adjusted APH (TA)Additional Example

2 years ofactual history inmost recent 12 years

50% of TrendAdjustment

2 x 50% = 1

TA applied to YAYield in 1996

Year Production Acres Yield YieldDesc

Trend Adjusted Yield Calculation

1993 0 200 0 A-YA 78 + 19 = 97 TA1996 27600 200 138 A 138 + 16 = 154TA1998 29400 200 147 A 147 + 14 = 161 TA2005 Z 2006 Z 2007 Z 2008 40200 200 201 A 201 + 4 = 205 TA2009 Z 2010 Z 2011 33400 200 167 A 167 + 1 = 168 TAT-Yield = 130 Trend Adjustment Limitation = 203

Approved Yield 157 TA 157 TA Average Yield 131 Rate Yield

YA Adjusted Yield131146

Trend Adjusted APH (TA)Additional Example

Unit does not Qualify for TA

There are no actual yields in the database

Year Production Acres Yield YieldDesc

Trend Adjusted Yield Calculation

2006 154 L 154 + NA = 1542007 154 L 154 + NA = 1542008 154 L 154 + NA = 1542009 154 L 154 + NA = 1542010 Z 2011 Z

T-Yield = 154 Trend Adjustment Limitation = NA Approved Yield 154 L TA NA Average Yield 154 Rate Yield 154

Trend Adjusted APH

Questions