APH Yield Exclusion

This presentation highlights features of Risk Management Agency programs and is not intended to be comprehensive. The information 

presented neither modifies nor replaces terms and conditions of the basic policy, the crop provisions, or the county actuarial documents.
What is APH Yield Exclusion (YE)?

• A provision of the 2014 Farm Bill that allows an actual yield to be 

excluded for a crop year when RMA determines the county per 

planted acre yield for a crop year was at least 50 percent below 

the simple average of the per planted acre yield for the crop in 

the county for the previous 10 consecutive crop years, and the 

crop year is identified in the actuarial documents.
Implications of APH YE

• When an eligible crop and crop year is identified on the actuarial 

documents, a producer is allowed to exclude an actual yield from 

their production history when calculating approved APH yields.

• Once elected, ALL eligible yields will be excluded UNLESS the insured 

identifies specific year(s) they do not wish to exclude (such as individual 

yields that are not lower than the county average).

• Excluding lower yielding eligible crop years may increase the 

producer’s approved APH yield.
Implications of APH YE

• Because excluded yields may result in higher approved APH 

yields, and potentially higher insurance guarantees and indemnity 

payments, APH databases with yield exclusions may have 

increased premium.

• Only producers who elect and use the YE option will likely have 

premium adjusted for the APH databases affected by APH YE 

(i.e., only the APH databases with yield exclusions will have 

premium adjusted).

• Producers not electing APH YE will not pay additional 

premium.
Availability of APH YE

• APH YE will be available nationwide for counties where the actuarial 

documents identify the crop and eligible crop years, beginning with 

spring 2015 crops.

• When a crop year is determined to be eligible for YE for a crop in a 

county, insureds in contiguous counties, as determined by RMA, will 

also be eligible to exclude actual yields for that crop year under YE.

• The actuarial documents will identify if the crop year eligible for 

exclusion is from the primary county (designated with a “P”), or from 

a contiguous county (designated with a “C”).
Availability of APH YE – Written Agreements

• Generally, written agreements are eligible for yield exclusion if 

the actuarial documents for the specific crop/county identify the 

YE option and crop year eligible.

• The following exceptions apply:

• YE cannot be added by a WA to the county.

• YE is not applicable for written agreements for a county without 

actuarial documents for the crop (XC type).

• YE is not applicable for written agreements that make irrigation 

practices (irrigated, non-irrigated, and limited irrigation) insurable in a 

county.
Eligible Crop Year

• An eligible crop year occurs when the average per planted acre 

yield (as determined by RMA) for the crop in the county is at least 

50 percent below the simple average of the per planted acre yield 

for the crop in the county for the previous 10 consecutive crop 

years.

• Ex. – For the 2012 crop year, the previous 10 consecutive crop years 

used will be 2002-2011.

• The 2012 county yield would have to be at least 50 percent below the 

average yield of 2002-2011.

• If the average yield of 2002-2011 was 100 bushel, then the county yield 

for 2012 would have to be 50 bushel or less for RMA to determine that 

year eligible to be excluded.
Eligible Crop Year – Data

• Eligible crop years for exclusion are determined by county using 

production data by county, crop year, crop, and irrigated/nonirrigated practices, as determined by RMA.

• The immediately preceding crop year is not available for analysis 

and inclusion for yield exclusion (e.g., the 2014 crop year will not be 

eligible for exclusion for the 2015 crop year as the 2014 crop year data 

will first be available for analysis to determine if eligible for exclusion 

for the 2016 crop year).
Eligible Crop Year – Data

• RMA data is primary data, if sufficient RMA data exists.

• If for any given crop year RMA data is not sufficient, NASS data 

will be used if available and appropriate.

• In a limited number of situations, the applicable county T-Yield 

may be used, as appropriate, to complete a 10-year consecutive 

period (max of three years using county T-Yield for a 10-year 

consecutive period).

• The earliest year that RMA may identify as being eligible to be 

excluded will be 1995, using data from 1985 thru 1994 to 

determine the 10-year average.
Maps

• Maps identifying the number of eligible crop years by crop, by 

county, and by irrigation practice are available at: 

http://www.rma.usda.gov/news/currentissues/aph/index.html. 
APH YE Election

• For the current crop year:

• The insured must elect YE by the sales closing date by crop/county on 

an application or policy change form by indicating the “YE” option code.

• Policyholders who elect YE must understand that ALL actual yields 

for an eligible crop year are automatically excluded, UNLESS the 

insured opts out of excluding an actual yield by the production 

reporting date by identifying the yield not to be excluded in the 

APH database.

• YE is a continuous election until cancelled.
Cancellation

• YE must be cancelled in writing on or before the cancellation date 

for the crop for the effective crop year.

• When an insured cancels YE:

• Actual yield exclusion for eligible crop year(s) no longer apply.

• 10 percent yield limitation (cup) will not apply the year YE is cancelled 

for any APH database that had a year excluded under the YE.

• Yield substitution, if elected, and yield floors may apply.
Transfers

• YE is considered cancelled when the policy is transferred to a 

different AIP.

• If the insured wishes to continue the use of YE, the election must 

be made on or before the sales closing date with the assuming 

AIP.

• YE is considered a new election with the assuming AIP and ALL actual 

yields for an eligible crop year will be automatically excluded.
Yield Limitations

• Approved APH yields using YE are not eligible for cups or yield 

floors.

• APH databases without excluded actual yields remain eligible for 

cups and yield floors (when authorized by the CIH Part 14, Section 

4).
Yield Reductions

• Procedures concerning yield reductions contained in the CIH Part 

12, Section 4, are unaffected when YE is elected.

• Actual yields reduced due to being identified as an excessive yield 

cannot be excluded under the YE option.

• Reductions of approved APH yields due to inconsistent approved 

APH yields or different production methods, continue to apply 

when CIH Paragraphs 1254 and 1255 apply to an APH database.
Eligible Actual Yields

• Actual yields in an APH database identified with the following 

yield descriptors are eligible for exclusion if they are in an eligible 

crop year for exclusion identified in the actuarial documents:

Practice Yield Descriptor

Conventional A, AY, NA, PA, DA, NW, PW, WY, R, PR, NR, RY, BF

Transitional G, GY, NG, PG, DG, GW, NO, OY

Certified Organic V, VY, NV, PV, DV, VW, NU, UY
APH Database

• Only actual yields in an APH database are eligible for exclusion.

• No limit to the number of actual yields in eligible crop years that 

can be excluded from an APH database.
Actual Yield “Opt Out”

• Any actual yield in an eligible crop year the insured chooses to 

NOT exclude must be identified in the APH database with a Yield 

Exclusion Opt Out Flag.

• “Y” – Yield Exclusion Opt Out flag – this indicates the insured is choosing 

to NOT exclude an actual yield in an eligible crop year for exclusion.

• The actual yield will remain in the calculation of the approved APH yield.

• For APH database form standards see Exhibit 2 of the APH Yield 

Exclusion Standards:

• When the insured has chosen to Opt Out, the insured must sign the APH 

database.

• Only one signature is required for multiple APH databases.
Excluded Actual Yields – APH Database

• Actual yields in an eligible crop year that are excluded continue to 

be reported in an APH database using the applicable yield 

descriptors.

• Actual yields in an eligible crop year that are excluded are still 

subject to APH reviews.
Subsequent Years

• Any exclusion or Opt Out of exclusion of an actual yield(s) in an APH 

database continues to apply in subsequent crop years unless the 

insured cancels the YE option by the sales closing date or notifies the 

AIP in writing by the production reporting date to change which actual 

yields are excluded or opted out of exclusion.

• If the insured chooses to no longer exclude an eligible crop year in an 

APH database by the production reporting date, the previously 

excluded actual yield(s) are used to calculate the APH yields, however:

• Cups do not apply when calculating the current year’s approved APH yields, if yield 

exclusions were applicable the previous APH crop year; and

• Yield floors are applicable for Category B crops only, based on a percentage of the TYield for the practice/type/T-Yield map area using the number of years of 

actual/assigned yields provided for the crop and county.
APH Database – Less Than 4 Years of Yields 

• If yield exclusions result in less than 4 years in an APH database:

• The applicable T-Yield is used to complete the minimum 4-year 

database; and

• Any variable T-Yield percentage uses the number of actual/assigned 

yields for the crop/county before applying APH YE.

• Example: A producer has 4 actual/assigned yields for the crop/county. The 

producer has an APH database with 3 actual yields and 2 years are eligible to be 

excluded, and are excluded by the producer. The APH database will contain 1 

actual yield and 3 years of 100% T-Yields. The T-Yield percentage is 100% since 

the producer has 4 actual/assigned yields for the crop/county prior to applying 

APH YE. (The three years of 100% T-Yields are used in the calculation only. The 

T-Yields are not reported.)

• Excluded yield years continue to count as a year of producing the crop 

for variable T-Yield, percent of yield floor, New Producer, and 

Beginning Farmer and Rancher purposes.
Yield Adjustment Interaction

• A producer may elect and apply both YA and YE options on a policy 

and within an APH database.

• Only one option, either YE or YA, can be applied to an actual yield for 

an eligible crop year within an APH database.
Malting Barley Price and Quality Endorsement (MBPQE)

• YE is applicable for actual yields in eligible crop years contained in 

the malting barley type APH databases insured under the Small 

Grains CP.

• If Option A of the MBPQE is also elected, YE will not apply to 

actual yields in eligible crop years in Option A APH database(s). 
Simple Average (SA) T-Yields

• To calculate the SA T-Yield, use:

• The adjusted yield for those APH databases with excluded 

actual yields in an eligible crop year that have at least one 

actual/assigned yield prior to any exclusions; and 

• The approved APH yield for those APH databases where actual 

yields have not been excluded that have at least one 

actual/assigned yield.
North Dakota Personal T-Yield (PTY)

• The PTY is a T-Yield calculated using the insured’s own actual 

yields and/or assigned yields.

• If YE is elected, the PTY is used in place of RMA’s published T-Yields.

• Exclusions of an actual yield for an eligible crop year apply to 

individual APH databases, NOT the PTY Summary.

• The calculation of the PTY is unchanged with the election of APH 

YE.

• The production and acreage for an eligible excluded actual yield is 

included in the total production and acres in the PTY Summary. 
Trend Adjustment (TA)

• When an actual yield in an eligible crop year is excluded, an 

excluded actual yield is not considered for TA purposes when 

determining:

• Whether and APH database qualifies for TA by having at least an actual 

yield in one of the four most recent crop years;

• The applicable TA percentages; and

• The highest actual yield in the APH database with one year of trend 

adjustment applied for the TA limitation of the approved APH yield for 

the APH database.
Adjusted Yield

• When YE is applicable to an APH database, AIPs must calculate an 

adjusted yield.

• The adjusted yield is the average of the annual yields in the APH 

database:

• Without yield limitations (cups and yield floors);

• Without any yield exclusions; and

• With yield substitutions, if YA is elected by the insured. If YA is not elected 

by the insured, yield substitutions are not included and the adjusted yield 

is the average of the annual yields in the APH database.

• Exception: When yield reductions apply to the APH database, the 

adjusted yield must equal the approved APH yield.
Adjusted Yield

• The approved APH yield will not be less than the adjusted yield 

when YE applies to the APH database.

• The adjusted yield is not the same as the rate yield.

• The adjusted yield for YE uses similar methodology as the adjusted yield 

for TA purposes.
Rate Yield

• The rate yield is equal to the average yield (see calculating 

average yield slide) when yield exclusions are used in an APH 

database.

• Exceptions:

• When the approved APH yield is reduced for Inconsistent Approved 

APH Yields, the rate yield is equal to the approved APH yield.

• When the approved APH yield is reduced for Different Production 

Methods being carried out for the current crop year, which results 

in lower actual yields, the rate yield is equal to the approved APH 

yield.
APH Database – Calculating Yields When YE is Elected

• When the insured has excluded at least one eligible crop year’s 

actual yield from an APH database, the following yields must be 

calculated for that APH database:

• Average Yield;

• Adjusted Yield; and

• Approved APH Yield.
APH Database – Calculating Average Yield

• Calculate the average yield by:

1. Summing the annual yields in the APH database, prior to 

yield exclusions, yield substitutions, trend adjustments, cups 

and floors.

2. Dividing the sum in 1 by the number of annual yields in the 

APH database.
APH Database – Calculating Adjusted Yield

• Calculate the adjusted yield by:

1. Summing the annual yields:

• After substituting 60 percent of the applicable T-Yield for eligible 

actual yields that are less than 60 percent of the applicable TYield (YA), if elected;

• Prior to excluding any actual yields in an eligible crop year; and

• Without applying any yield limitations (cups and yield floors).

2. Dividing the sum in 1 by the number of annual yields in the 

APH database.
APH Database – Calculating Approved APH Yield

• Calculate the approved APH yield by:

1. Summing the remaining annual yields after:

• Excluding actual yields for eligible crop years as elected by the 

insured.

• Note: If less than four annual yields remain after excluding actual 

yields, use the applicable T-Yield to meet the APH database fouryear minimum. If the applicable T-Yield for the APH database is 

the variable T-Yield, use the variable T-Yield percentage based on 

the number of years of actual/assigned yield(s) for the crop in the 

county to determine the T-Yield.

• Substituting YA, if elected.
APH Database – Calculating Approved APH Yield

2. Dividing the sum in 1 by the number of years of annual yields 

that remain in the APH database (do not count the excluded 

annual yield, but do count each of the applicable T-Yields 

used to maintain 4 yields in the APH database) and applying 

any applicable yield reductions.

• The result is the approved APH yield when the insured has chosen 

to determine the approved APH yield with YE and YA, if elected.

• Exception: The approved APH yield will not be less than the 

adjusted yield. If the approved APH yield calculated in this step 

is less than the adjusted yield, the adjusted yield becomes the 

approved APH yield. 
Determining Premium Rates

• If the approved APH yield calculation excludes at least one 

actual yield in an eligible crop year, the effective coverage 

level (based on the adjusted yield) is used for determining the 

premium rate.
Scenario #1a – YE Option Only

• A producer has an APH database for non-irrigated cotton that 

contains yields from 2005 to 2014 and has elected the YE option.

• The actuarial documents show that three crop years are 

excludable for non-irrigated cotton in this producer’s county, 

2007, 2012, and 2013.
Scenario #1a – YE Option Only

(P) indicates yield exclusion based on primary county.

(C) indicates yield exclusion based on contiguous county.

Yield Exclusion

Selection Criteria

Year: 2015 Commodity: Cotton (0021) 

Data: Example Plan: Revenue Protection (02) 

Types / Practices T/P 01 T/P 02 T/P 03 

Type No Type Specified 997 No Type Specified 997 No Type Specified 

Practice Non-IRR 003 Non-IRR Skip Row 063 IRR 002 

Yield Exclusions

LBS LBS LBS 

Eligible Yield Exclusion Years 2013 (P) 2013 (P) 2012 (P) 

2012 (P) 2012 (P) 2011 (P) 

2007 (C) 2007 (C) 
Scenario #1a – YE Option Only

Year Eligible For Exclusion APH APH with All Eligible 

Yields Excluded

2005 No 628 628

2006 No 746 746

2007 Yes – by Contiguous County 231

2008 No 563 563

2009 No 430 430

2010 No 111 111

2011 No 531 531

2012 Yes – by Primary County 0

2013 Yes – by Primary County 35

2014 No 95 95

Approved APH Yield 337 443

Average Yield: (628+746+231+563+430+111+ 

531+0+35+95) / 10 = 337 lbs

Adjusted Yield: (628+746+231+563+430+ 

111+531+0+35+95) / 10 = 337 lbs

Approved APH Yield: (628+746+563+430+ 

111+531+95) / 7 = 443 lbs

The approved APH yield is greater than the 

adjusted yield.

The producer’s approved APH yield increases 

from 337 lbs with no options to 443 lbs with 

the use of the YE option.
Scenario #1b – YE Option with YA

• In addition to the situation in scenario 1a, the producer has also 

elected the YA option for the cotton APH database. 
Scenario #1b – YE Option with YA

Year Eligible For Exclusion T-Yield 60% of Applicable

T-Yield

APH APH with 

YA

APH with All Eligible 

Yields Excluded and YA

2005 No 206 124 628 628 628

2006 No 227 136 746 746 746

2007 Yes – by Contiguous County 268 161 231 231

2008 No 301 181 563 563 563

2009 No 301 181 430 430 430

2010 No 301 181 111 181 181

2011 No 301 181 531 531 531

2012 Yes – by Primary County 301 181 0 181

2013 Yes – by Primary County 361 217 35 217

2014 No 361 217 95 217 217

Approved APH Yield 337 393 471
Scenario #1b – YE Option with YA

• Average Yield: (628+746+231+ 563+430+111+531+0+35+95) / 10 = 337 lbs

• Adjusted Yield: (628+746+231+563+430+181+531+181+217+217) / 10 = 393 

lbs

• Approved APH Yield: (628+746+563+430+181+531+217) / 7 = 471 lbs

• The approved APH yield is greater than the adjusted yield.

• The producer’s approved APH yield increases from 337 lbs with no options to 

471 lbs with the use of the YE option and YA option combined.
Scenario #1c – YE Option with YA and TA

• In addition to the situation in scenario 1b, the producer has also 

elected the TA option for the cotton APH database.

• The county trend is 5 lbs and the producer has seven actual yields 

(excluded yields do not count) in the previous 12 crop years, thus 

the producer can use 100 percent of the trend adjustment (5 lbs x 

1.0 = 5 lbs).
Scenario #1c – YE Option with YA and TA

Year Eligible For Exclusion T-Yield 60% of Applicable

T-Yield

APH APH

with YA

APH with All Eligible Yields 

Excluded, YA, and TA

2005 No 206 124 628 628 678

2006 No 227 136 746 746 791

2007 Yes – by Contiguous County 268 161 231 231

2008 No 301 181 563 563 598

2009 No 301 181 430 430 460

2010 No 301 181 111 181 206

2011 No 301 181 531 531 551

2012 Yes – by Primary County 301 181 0 181

2013 Yes – by Primary County 361 217 35 217

2014 No 361 217 95 217 222

Approved APH Yield 337 393 501
Scenario #1c – YE Option with YA and TA

• Average Yield: (628+746+231+ 563+430+111+531+0+35+95) / 10 = 337 lbs

• Adjusted Yield: (628+746+231+563+430+181+531+181+217+217) / 10 = 393 

lbs

• Approved APH Yield: (678+791+598+460+206+551+222) / 7 = 501 lbs

• The approved APH yield is greater than the adjusted yield.

• The producer’s approved APH yield increases from 337 lbs with no options to 

501 lbs with the use of the YE option, YA option, and TA option combined.
Scenario #2 – Excluding High Actual Yields

• A producer has an APH database for NFAC (not following another 

crop) non-irrigated soybeans that contains yields from 2008 to 

2014 and has elected the YE option.

• The actuarial documents show that three crop years are 

excludable for NFAC non-irrigated soybeans in this producer’s 

county, 2011, 2012, and 2013.
Scenario #2 – Excluding High Actual Yields

Yield Exclusion

Selection Criteria

Year: 2015 Commodity: Soybeans (0081) 

Data: Example Plan: Revenue Protection (02) 

Types / Practices T/P 01 T/P 02 T/P 03 

Type No Type Specified 997 No Type Specified 997 No Type Specified 

Practice NFAC (Non-IRR) 053 FAC (Non-IRR) 043 NFAC (IRR) 09

Yield Exclusions

BU BU BU 

Eligible Yield Exclusion Years 2013 (C) 2013 (C) 2012 (P) 

2012 (C) 2012 (C)

2011 (C) 2011 (C)

(P) indicates yield exclusion based on primary county.

(C) indicates yield exclusion based on contiguous county.
Scenario #2 – Excluding High Actual Yields

Year Eligible For Exclusion APH APH with All Eligible 

Yields Excluded

2008 No 36 36

2009 No 38 38

2010 No 45 45

2011 Yes – by Contiguous County 51

2012 Yes – by Contiguous County 42

2013 Yes – by Contiguous County 40

2014 No 46 46

Approved APH Yield 43 41

Average Yield: (36+38+45+51+42+40+46) / 7 = 

43 bu

Adjusted Yield: (36+38+45+51+42+40+46) / 7 = 

43 bu

Approved APH Yield: (36+38+45+46) / 4 = 41 bu

The approved APH yield is less than the adjusted 

yield. The approved APH yield will equal the 

adjusted yield since the approved APH yield 

cannot be less than the adjusted yield.

The producer’s approved APH yield does not 

change with the APH YE option due to the 

producer having high yields in the excluded crop 

years. Which by excluding the higher yields, 

lowered the approved APH yield.
Scenario #3 – APH Database Resulting in Less Than 4 Years 

• A producer has only one APH database for NFAC non-irrigated 

soybeans in the county, which contains yields from 2011 to 2014. 

The producer has elected the YE option.

• The actuarial documents show that one crop year is excludable 

for NFAC non-irrigated soybeans in this producer’s county, 2013.
Scenario #3 – APH Database Resulting in Less Than 4 Years

Yield Exclusion

Selection Criteria

Year: 2015 Commodity: Soybeans (0081) 

Data: Example Plan: Revenue Protection (02) 

Types / Practices T/P 01 T/P 02 T/P 03 

Type No Type Specified 997 No Type Specified 997 No Type Specified 

Practice NFAC (Non-IRR) 053 FAC (Non-IRR) 043 NFAC (IRR) 09

Yield Exclusions

BU BU BU 

Eligible Yield Exclusion Years 2013 (P) 2013 (P) 2013 (P) 

(P) indicates yield exclusion based on primary county.

(C) indicates yield exclusion based on contiguous county.
Scenario #3 – APH Database Resulting in Less Than 4 Years

Year Eligible For Exclusion T-Yield APH APH with All Eligible 

Yields Excluded

2011 No 35 42 42

2012 No 35 38 38

2013 Yes – by Primary County 35 20 T35

2014 No 35 49 49

Approved APH Yield 37 41

The producer has four actual yields prior to applying APH YE, thus 100% of the T-Yield is 

used to complete the APH database.
For more information, please visit: 

www.rma.usda.gov/news/currentissues/farmbill/index.html