Insuring the Crop Using Actual Production History
Posted August 2025
Researchers: Ariel Singerman
Contact: Ariel Singerman, UF/IFAS CREC
Summary:
Obtaining coverage under the Actual Production History (APH) crop insurance policy has been, on average, economically beneficial for Florida citrus growers so far. This is because the policy provides coverage against yield losses based on historical farm yield records, which leads to higher guarantees relative to those that would result if the downward trend in yield caused by HLB was accounted for. It is important to note, however, that net payouts from APH are, on average, decreasing over time because the premium rates are increasing and yield as well the APH yield are decreasing. Thus, going forward, growers should consider two important factors when choosing to insure their crops under such a policy. First, to be eligible for APH coverage, a block that is at least eight years old must have produced at least 100 boxes per acre in one of the three most recent seasons. Even when a special request is made to insure such a block, the determined yield may not exceed 80% of the average yield for the entire APH database. Second, APH standards include a procedure for testing high variability in yield due to a downward trend pattern in the APH database. If the test for such a pattern is positive, the APH yield will be reduced by 20%. Therefore, individual growers may want to make their own calculations to determine the optimal level of APH coverage for their groves.
Take Home Message:
- Net payouts from APH are, on average, decreasing over time.
- Yield for a block that is eight years old or older needs to be at least 100 boxes per acre to be insurable under APH.
- When the APH downward trend adjustment is implemented, the APH yield will be reduced by 20%.
