What is the effect of Yield Exclusion (YE) on actual yield?

Yield Exclusion (YE) plays a critical role in the Actual Production History (APH) calculation for crop insurance. Specifically, it allows producers to exclude certain low yield years from their APH calculation, which can help to provide a more accurate representation of a farm's productive capacity. This means that if a significant disaster or event impacted yields in certain years, those years could be disregarded when establishing the average yield used for insurance purposes.

In this context, the correct choice highlights the primary function of Yield Exclusion—it enables producers to set aside those unrepresentatively low yields, thereby potentially increasing their APH and subsequently their insurance coverage levels. By omitting these yields, farmers can better reflect their typical production levels, allowing for insurance that is more representative of their operational capabilities. The other options do not accurately capture this essential aspect of Yield Exclusion.