The Actual Production History Plan insures producers against what type of loss?

The Actual Production History (APH) Plan is designed to specifically protect producers from losses in yield, which is the amount of crop produced per acre. This insurance coverage is based on the producer's historical production records, allowing for an estimation of the expected yield for the upcoming crop season.

In the event that the actual yield falls below the insured yield due to various factors such as adverse weather conditions, pests, or diseases, the APH Plan provides financial relief to the producer. This is critical for maintaining the economic stability of farmers, as it helps offset the risks associated with farming that directly impact the quantity of crop harvested.

In contrast, the other options focus on different aspects of agricultural risk. Loss in revenue refers to the overall income from the sale of crops, which can be influenced by yield among other factors, but is not the primary focus of the APH Plan. Loss in quality pertains to the marketability of the crop rather than the quantity produced. Lastly, loss in value generally refers to the market price of the crop at sale time and does not account for the production aspects prioritized by the APH Plan. Thus, understanding the distinction that the APH Plan specifically addresses yield loss clarifies its role within crop insurance.