Whole Farm Crop Insurance May Be for You

• November 19, 2014
• Paul Neiffer

RMA recently released the details on the new Whole-Farm Revenue Protection (WFRP crop insurance program.  This insurance replaced the old Adjusted Gross Revenue (AGR) and Adjusted Gross Revenue-Lite (AGR-Lite) programs.  This insurance plan is tailored for any farm with up to $8.5 million in insured revenue and includes farms with specialty or organic commodities (both crops and livestock).  This policy is really designed for farms with more than three substantial crops (to receive the largest subsidy) and farms crops that are not normally covered under other crop insurance programs.

As an example, organic blueberries or other fruits, potatoes, onions, sweet corn, and other similar crops would be a good choice for this policy.  If you primary farm corn and soybeans, this policy is probably not for you.  To be eligible, you must:

• Be eligible to receive Federal benefits;
• Be a U.S. citizen or resident;
• File either a Schedule F tax for or other farm tax form that can be converted to a Substitute Schedule F;
• Have 5 consecutive years of farm tax history (for the 2015 WFRP insurance year, farm tax records from 2009-2013 must be available);
• Produce at least 50% of your agricultural commodities in counties where WFRP is available and the balance in neighboring counties;
• Have no more than $8.5 million in insurance revenue ($17 million of actual revenue at the 50% level down to $10 million at the 85% level);
• Have no more than 50% of total revenue from commodities purchased for resale;
• Have “buy-up” coverage levels on any Federal crop insurance plans you choose with the WFRP insurance plan;
• Meet the diversification requirements of the policy by having two or more commodities if a commodity you are raising has revenue protection or actual revenue history insurance available; and
• Meet the diversification requirements of the policy by having two or more commodities if there are potatoes on the farm.

Here is a Fact Sheet from RMA on WFRP.

 

 

 

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