¹State/County: Enter the applicable state and county or independent city and codes in which agricultural commodities will be produced that are expected to generate allowable income.

² Commodity Name/Code: Enter the name of any agricultural commodity that will be produced or purchased for resale during the insurance year. The AIP must enter the applicable agricultural commodity code. Each different agricultural commodity must be listed on a separate line. Commodities purchased for resale must also be listed."

³ # Years Produced: Enter the number of years the agricultural commodity was produced in the previous six insurance years. This is for informational purposes only.

⁴ Intended Amount: This column documents the amount of insurable commodities that insureds expect to produce.

⁵ Yield: For each unit of measure, enter the amount of the commodity to be produced. For APH crops insured under MPCI policies, yields reported for AGR should be consistent with APH yields unless damage occurred prior to coverage beginning, production practices to be carried out, or other uninsured causes will reduce the crop's production from previous levels. The unit of measure must be consistent with how the commodity is marketed (e.g., 5.5 tons of processing cucumbers per acre). For commodities with the total production entered, enter 1.0 (e.g., animals that will be sold by the head, milk and commodities purchased for resale). For animals that are marketed by the pound, enter the expected pounds of gain per animal.

⁶ Expected Value: Enter the average expected value to dollars and cents (contracted value if produced under a contract with a specified price) of the agricultural commodity in the unit of measure, for which it is marketed (tons, cwt., bu., lbs., etc.For crops produced in a greenhouse, enter the expected gross income per square foot relative to the crops that will be produced. For commodities purchased for resale (exception: animals that will be marketed in pounds), enter the expected market price less the cost or other basis. For animals that are marketed in pounds, enter the average expected market price.

⁷ Coverage Levels: AGR losses begin when the income to count for the insurance year is less than the product of multiplying the percentage for the coverage level elected times the Approved AGR (unless adjustments to the approved AGR are required when a claim for indemnity is completed). For example, 65/75 coverage is elected and the approved AGR is $200,000. The loss begins when the allowable income for the insurance year is less than $130,000 ($200,000 X .65). If the income to count for the insurance year is $80,000 the revenue deficiency is $50,000).

⁸ Payment Rates: The payment rate is the percentage of the revenue deficiency that is paid by the AIP. For example, if the 65/75 coverage levels is elected and the revenue deficiency was $50,000, the indemnity would be $37,500 ($50,000 X .75 = $37,500).

⁹ Allowable Income: Farm income from the production of insurable agricultural commodities minus added value for any agricultural commodity due to post-production operations such as processing, packing, packaging, etc. that the IRS requires producers to report.

¹⁰ Allowable Expenses: Farm expenses that are reported to the IRS, for the production of insurable agricultural commodities (produced by the insured). Only expenses directly associated with the production of insurable agricultural commodities are allowable, indirect expenses must be excluded. Direct farming expenses are farm labor and inputs. Indirect farming expenses are administration, marketing, and overhead. Where direct and indirect expenses are reported on the same line of the tax return (for example, office utilities on the same line as utilities for irrigation), the allowable portion is the direct portion (utilities for irrigation).