Actual Revenue History (ARH) is mainly designed to protect growers from losses due to:

Actual Revenue History (ARH) is designed to provide a safety net for growers by protecting them against revenue losses that can occur due to a combination of low prices and low quality crops. This type of insurance takes into account not only the yield of the crop but also the market prices at which the crops are sold.

When growers experience low selling prices for their products or a significant decline in the quality of their crops—which may reduce market value—their overall revenue is affected negatively. By addressing both price and quality, ARH helps ensure that farmers maintain a more stable income, even in tough market conditions.

This approach is particularly relevant in agricultural markets where fluctuations in trading prices can be drastic based on market demand, supply issues, and other economic factors. Thus, ARH serves as a comprehensive tool, guarding against both of these aspects that can heavily impact the economic viability of farming operations.