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
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