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Northeast Iowa | This morning I was looking at my crop insurance paperwork.
I insure in optional units instead of enterprise units, so each farm stands alone with its own production. At the bottom of my paperwork, the crop insurance company gives me a simple average for my all farm APH.
I have a lot of marginal acres, and my simple average is around 165 bpa for corn. If I used a weighted average, it bumps it up to 175 bpa.
Typically, doesn't matter but now with cfap 2.0 am I going to use a weighted average, or a simple average to calculate my APH payment on my acres?
The difference between the the formula is about $2.30/acre for me, but I imagine other people are at risk of missing out due to lazy math if simple averages are used.
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Simple Avg vs Weighted APH
