Actual Revenue History: How ARH Crop Insurance Works

Farmers often use historical production records when evaluating crop insurance. But some insurance products focus on something broader: the revenue a farm has actually generated over time.

Actual Revenue History (ARH) is a crop insurance plan that uses historical revenue rather than simply insuring historical yields. The approach can be useful for certain eligible crops and operations, but availability and requirements depend on the applicable policy.

The USDA Risk Management Agency states that ARH has similarities to Actual Production History (APH), with the major difference being that ARH insures historical revenue rather than historical yields.

What Is Actual Revenue History?

Actual Revenue History is a crop insurance plan that uses a producer’s historical revenue to establish coverage according to the applicable policy provisions.

That makes it different from an insurance approach that focuses mainly on historical production.

Revenue can be influenced by both the amount produced and the price received. As a result, a farm’s financial history can sometimes tell a different story from its production history alone.

However, ARH is not a general insurance policy for all farm income. The applicable crop provisions determine what revenue counts, what records are required, and how the coverage is calculated.

How Does Actual Revenue History Work?

The process generally involves documenting historical revenue and applying the rules contained in the applicable ARH policy.

A producer may need to provide records showing the farm’s historical revenue for the required years. The insurer then applies the policy provisions to determine the relevant revenue history and available coverage.

The exact process varies by crop.

RMA’s policy database currently lists Actual Revenue History under its crop insurance policies, including an ARH pilot endorsement covering the 2025–2027 period.

Because crop provisions can differ, farmers should verify the exact policy that applies to their crop and insurance year.

Why Is Historical Revenue Important?

A farm’s revenue can change even when production does not.

For example, suppose a producer harvests roughly the same quantity of a crop in two years. If the price received is significantly different, the farm’s revenue can still change substantially.

Historical revenue therefore provides information that a production-only record may not capture.

This can be particularly relevant when a crop’s value is strongly affected by market prices.

Actual Revenue History vs. Actual Production History

ARH and APH are related concepts, but they are not the same.

RMA specifically notes that ARH has many parallels with APH but changes the focus from historical yields to historical revenues.

What Records May Be Needed?

The required records depend on the particular ARH plan.

A farmer should be prepared to organize documents such as:

• Historical sales records
• Production information
• Settlement statements
• Acreage records
• Crop-specific documentation
• Prior insurance information
• Other records requested by the approved insurance provider

Do not assume that every number appearing on a farm’s accounting records automatically qualifies as insured revenue.

The policy determines which revenue is recognized and how it must be documented.

Why Accurate Records Matter

Historical records are particularly important when an insurance plan relies on them to establish coverage.

A missing record can make it more difficult to demonstrate what actually occurred during a particular year. Inconsistent records can also create questions about whether revenue was properly reported.

A practical approach is to maintain a separate digital and physical record system for each crop year.

Keep sales documents, production information, acreage records, and insurance paperwork together so they can be retrieved quickly if needed.

Is Actual Revenue History Available for Every Farm?

No.

ARH is not automatically available for every crop, county, or operation. The applicable crop provisions determine whether the plan can be used.

This is especially important because RMA updates policy documents over time. Current RMA materials show separate ARH policy documents for different crop years, and RMA has also announced future policy changes affecting ARH beginning with later crop years.

For that reason, farmers should check the current policy rather than relying on an older article or previous year’s requirements.

How Does ARH Relate to Revenue Protection?

Actual Revenue History and Revenue Protection are both connected to revenue risk, but they use different approaches.

Revenue Protection generally establishes a revenue guarantee using policy-defined yield and price components.

ARH focuses on historical revenue under its specific policy provisions.

For a broader explanation of revenue-based crop insurance, read our guide to how Revenue Protection works.

Farmers operating diversified businesses can also compare these options with whole-farm revenue protection, which has its own eligibility and recordkeeping requirements.

Questions to Ask Before Choosing ARH

Before applying, ask an approved crop insurance agent:

• Is ARH available for my specific crop?
• Which crop-year policy applies?
• Which historical years are used?
• What revenue records are required?
• How are unusual or missing years handled?
• What coverage levels are available?
• What premium would apply?
• What reporting deadlines should I know about?

These questions can help prevent assumptions based on general descriptions of ARH.

Common Recordkeeping Mistakes

Farmers can make the process harder by waiting until the last minute to organize documentation.

Avoid:

• Mixing farm and personal transactions
• Relying only on memory
• Discarding older sales records
• Failing to reconcile sales documentation
• Ignoring changes in acreage or production
• Assuming tax records automatically satisfy every insurance requirement

When in doubt, ask the insurance provider which documents should be retained.

Frequently Asked Questions

What does Actual Revenue History mean?

Actual Revenue History is a crop insurance approach that uses historical revenue as the basis for coverage under applicable policy provisions.

Is ARH the same as APH?

No. APH focuses on historical production, while ARH focuses on historical revenue.

Is ARH available for every crop?

No. Availability depends on the applicable crop provisions, location, and insurance year.

What records are needed for ARH?

The exact requirements vary by crop. Farmers should obtain the current record requirements from an approved insurance provider.

Conclusion

Actual Revenue History gives eligible producers a way to insure historical revenue under a specific crop insurance framework. Its main distinction from APH is that the policy focuses on revenue rather than simply historical yield.

Because ARH provisions can vary by crop and insurance year, farmers should verify current RMA documents and speak with an authorized crop insurance agent before relying on the plan for risk management.