PEORIA, Ill. — Farmers and ranchers affected by continuous years of extreme weather welcomed the announcement by USDA that the new Actual Production History (APH) Yield Exclusion initiative contained within the 2014 farm bill was launched on Oct. 21.

But many southern winter wheat producers were left wondering why the new crop insurance tool was not rolled out in time for their annual crop insurance deadline.

"Key programs launched or extended as part of the 2014 farm bill are essential to USDA’s commitment to help rural communities grow. These efforts give farmers, ranchers and their families better security as they work to ensure Americans have safe and affordable food," stated USDA Secretary Tom Vilsack. "By getting other 2014 farm bill programs implemented efficiently, we are now able to offer yield exclusion for spring 2015 crops, providing relief to farmers impacted by severe weather."

The initiative will cover spring 2015 crop production of corn, soybeans, spring wheat, cotton, grain sorghum, rice, barley, canola, peanuts, popcorn and sunflowers. It is expected the USDA will extend the APH Yield Exclusion to winter wheat producers and others in time for next fall’s insurance enrollment period.

The APH Yield Exclusion is regarded as vital by many Southern Plains producers who have faced multiple years of drought and severe weather. The exclusion allows them to disregard yields occurring in exceptionally bad years from their production history when calculating yields used to establish their crop insurance coverage. Previously, a year of particularly poor production would reduce the level of insurance coverage available to the farmer.

The new program allows growers to exclude yields from actual production history when the county average yield for a crop year is at least 50 percent below the 10 previous consecutive crop years’ average yields, according to the USDA Office of Communications. The initiative has drawn the praise of many Texas, Oklahoma and California agriculturists, along with their elected officials. "It is the difference between having viable crop insurance for the coming year or not," said U.S. House Agriculture Committee Chair Frank Lucas (R-Okla.) "(APH) means everything to farmers."

The American Soybean Assoc. (ASA) and National Assoc. of Wheat Growers (NAWG) were quick to issue statements lauding USDA’s launch of the insurance option. "The rollout of the APH program is a lifesaver for soybean farmers in so many parts of the country. It quite literally means the difference between continuing to farm following disastrous years, and being forced out of business," said ASA First Vice President Wade Cowan, a Texas producer. "Weather is the single biggest external factor in soybean farming. We have no control over its effects, but with the APH program, we can better respond to its impacts."

NAWG President Paul Penner, a wheat grower from Kansas, said his group was pleased with USDA’s intention to move forward with APH implementation. "This provision will be another tool for wheat growers across the country to strengthen their safety net, particularly for growers who have experienced multiyear disasters," Penner said.

Democratic politicos across the Southwest had reportedly pressured Vilsack to institute APH, most notably in Colorado, where a swing-state Senate election between Democrat Mark Udall and Rep. Gary Gardner, a Republican, is in full throttle.

But Vilsack’s green-lighting of the program didn’t come soon enough to satisfy winter wheat producers who have long supported the provision.

Oklahoma wheat growers are "very disappointed" USDA waited until after the Sept. 30 insurance signup deadline for winter wheat to launch APH, according to Tim Bartram, executive director of the Oklahoma Wheat Growers Assoc (OWGA).

The OWGA and Bartram feel there is still time to implement the provision for fall crops, and may consider litigation to expedite authorization, DTN/Progressive Farmer reported on Oct. 22.

"I feel fairly comfortable that there will be some legal challenges launched," Bartram said.

During a media conference call, Vilsack responded there was not enough time to roll out the program any sooner for the benefit of winter wheat producers, who have recently seen production levels descend to those during drought years of the 1950s. "(Earlier APH implementation for winter wheat) would create some serious actuarial concerns that would result in a bit of chaos on the market," he said, adding that actuarial soundness must provide the foundation of a successful crop insurance program.

"Until I had a briefing by our team recently on the complexity of APH, I didn’t fully appreciate and realize how many calculations and permeations there are to potentially impact a producer’s ability to obtain adequate crop insurance protection at an affordable price."

Much credit should be given the USDA and House and Senate agriculture committees, however, for working together to implement APH for 2015 spring planting, according to Cowan. "The positive effects (APH) will have for farmers, not only in the Southwest but nationwide, will be great evidence of its success," he said.