What does a farmer primarily insure against with the Actual Production History Plan?

The Actual Production History (APH) Plan is designed to protect farmers primarily against losses in yield. This plan uses historical data to establish a yield pattern for a specific crop on a specific farm. It allows farmers to receive indemnity payments when their actual production falls below this established level due to various causes such as adverse weather conditions, disease, or other factors that impact production.

While factors such as market price fluctuations and pest infestations certainly affect a farmer's overall financial health and can impact yield, the APH Plan specifically addresses the risk of decreased crop yields resulting from covered causes. Weather damage, although a contributing factor to yield loss, is only one potential cause among many that could affect production. The APH Plan itself functions to safeguard against the outcomes of these various risks by focusing on the quantifiable production losses.