Under which circumstance is the Yield Cup (YC) applicable?

The Yield Cup (YC) is applicable under circumstances where there's a significant decrease in a farm's yield, specifically when it has gone down by more than 10%. The Yield Cup is a tool used in crop insurance to establish a baseline for yield protection, enabling farmers to ensure that they receive compensation via their insurance policy when their actual yields drop significantly compared to their historical average. This important aspect of crop insurance helps to safeguard farmers against substantial losses in production, reflecting the distress caused by various factors such as weather events, disease, or other adverse conditions.

In this context, a decrease of more than 10% indicates a significant drop that warrants special attention and coverage, hence making the Yield Cup relevant in such scenarios.