How does the area approach work in PMFBY and why is my own field loss not enough?

For the main yield-based cover, PMFBY uses an area approach, not an individual field approach. The notified area, often a village, panchayat or a group of villages for a given crop, is treated as one unit of insurance. The claim depends on whether the actual average yield of that whole unit, measured through crop-cutting experiments, falls below a threshold yield. If the area average holds up even though your particular field did poorly, the yield-based cover will not pay you, because the loss is judged on the unit, not on your single plot. The individual field is only assessed separately under the add-on covers, namely localized calamities like hail or inundation, post-harvest losses, and prevented sowing. So if your loss came from a localized peril, you may still have a path through those heads if you reported it in time. For ordinary yield shortfall confined to your field, the area approach is the rule. You can ask your agriculture office which villages form your notified unit so you understand the boundary.