Transcript Trend Adjusted APH (TA) Grower PPT

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 APH
Expanded
Map
Trend Adjusted APH
Cotton Counties
Deaf Smith, Parmer, and south
Donley, Collingsworth and south
Not in Randall or Armstrong counties
Trend Adjusted APH
Corn Counties
Dallam, Sherman, Hansford, Ochiltree, Hartley
Moore, Hutchinson, Carson, Gray, Deaf Smith
Randall, Parmer, Castro, Swisher, Briscoe
Lamb, 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 on
1. The number of actual yields in the database
2. The year of the actual yield
3. 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
2
3
4 or more
25%
50%
75%
100%
Trend Adjusted APH (TA)
How does it Work - Sample
Example:
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–
–
–
–
–
–
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
2008
2009
2010
2011
22500
19300
26400
19700
150
100
150
100
150
193
176
197
Approved APH
Average Yield
Rate Yield
179
179
179
Yield
Desc
A
A
A
A
Trend Adjusted APH (TA)
How does it Work
Simple Example – Trend Adjusted APH Calculations
Current
Crop
Year
Actual
Yield Crop = Multiplier X
Year
-
2012
-
2008
=
4
2012
-
2009
=
2012
-
2010
2012
-
2011
Trend
Adjustment
=
Adjusted
Trend
Adjustment
+
Actual
Yield
=
Trend
Adjusted
Yields
x
2
=
8
+
150
=
158
3
x
2
=
6
+
193
=
199
=
2
x
2
=
4
+
176
=
180
=
1
x
2
=
2
+
197
=
199
APH (150 + 193 + 176 + 197) = 716 / 4 = 179
Trend Adjusted APH (158 + 199 + 180 + 199) = 764 / 4 = 184
Bushel 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 apply
Yield 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 Example
Year
4+ years of
actual history
In the most
12 years
100% of Trend
Adjustment
2 x 100 = 2.0
All years
qualify for TA
Production
Acres
Yield
2002
19950
150
133
2003
14500
100
145
2004
25050
150
167
2005
12200
100
122
2006
23550
150
157
2007
16500
100
165
2008
25650
150
171
2009
19300
100
193
2010
26400
150
176
2011
19700
100
197
T-Yield = 130
Trend Adjustment Limitation = 199
(197+2)
Approved Yield
174
Average Yield
163
Rate Yield
163
Yield
Desc
A
A
A
A
A
A
A
A
A
A
TA
Trend Adjusted Yield
Calculation
133 + 20 = 153 TA
145 + 18 = 163 TA
167 + 16 = 183 TA
122 + 14 = 136 TA
157 + 12
169 TA
165 + 10
175 TA
171 +
8
179 TA
193 +
6
199 TA
176 +
4
180 TA
197 +
2
199 TA
174
Trend Adjusted APH (TA)
Additional Example
Year
3 years of
actual history in
the most recent
12 years
75% of Trend
Adjustment
2 x 75% = 1.5
T-Yield does not
qualify for TA
Production
Acres
Yield
2003
130
2004
2005
2006
11600
80
145
2007
2008
2009
12160
80
152
2010
2011
11840
80
148
T-Yield = 130
Trend Adjustment Limitation = 154
Approved Yield
Average Yield
Rate Yield
148
144
144
Yield
Desc
T
Z
Z
A
Z
Z
A
Z
A
TA
Trend Adjusted Yield
Calculation
130 + N/A =
130
145
+ 9
=
154 TA
152
+ 4.5
=
156.5 TA
148
+ 1.5
=
149.5 TA
148
Trend Adjusted APH (TA)
Additional Example
Year
2 years of
actual history in
most recent 12
years
50% of Trend
Adjustment
2 x 50% = 1
TA applied to YA
Yield in 1996
Production
Acres Yield
1993
0
200
0
1996
27600
200
138
1998
29400
200
147
2005
2006
2007
2008
40200
200
201
2009
2010
2011
33400
200
167
T-Yield = 130
Trend Adjustment Limitation = 203
Approved Yield
Average Yield
Rate Yield
YA Adjusted Yield
157
131
131
146
Yield
Desc
A-YA
A
A
Z
Z
Z
A
Z
Z
A
TA
Trend Adjusted Yield
Calculation
78 + 19 =
97 TA
138 + 16 =
154TA
147 + 14 =
161 TA
201
+
4
=
205 TA
167
+
1
=
168 TA
157 TA
Trend Adjusted APH (TA)
Additional Example
Year
Unit does not
Qualify for TA
There are no
actual yields in
the database
Production
Acres
Yield
2006
154
2007
154
2008
154
2009
154
2010
2011
T-Yield = 154
Trend Adjustment Limitation = NA
Approved Yield
154
Average Yield
154
Rate Yield
154
Yield
Desc
L
L
L
L
Z
Z
L
Trend Adjusted Yield Calculation
154
154
154
154
+
+
+
+
NA
NA
NA
NA
=
=
=
=
154
154
154
154
TA NA
Trend Adjusted APH
Questions