To set a yield guarantee for Maren's policy, what record does her agent need?

To set a yield guarantee for Maren's policy, the agent requires an Actual Production History (APH). This is because the APH provides a documented record of the actual yields produced on the farm over a certain number of years. It represents the average yield that Maren has historically achieved for her crops and serves as a baseline for determining her future yield guarantees under the insurance policy.

The Actual Production History is critical in calculating the guarantees because it reflects real-world data instead of estimates or transitional yields. It helps the insurer assess risk and ensures that Maren has coverage commensurate with her previous production levels. By using historical production data, the insurance calculation can better match her specific farming situation, which is essential for both the policyholder and the insurer.

Other options such as an Actual Yield History might provide some insights but do not represent the formal historical data necessary for policy guarantees in the same way that an APH does. Similarly, a Transitional Yield Report is often based on averages or estimates and may not accurately reflect actual production levels. An Average Production Report could provide generalized data but lacks the personalized historical context that an APH offers, making it less suitable for setting up a yield guarantee.