Agriculture Secretary Mike Johanns has announced the expansion of the Adjusted Gross Revenue-Lite (AGR-Lite) plan of insurance, into the states of Ariz., Colo., Kan., Minn., Mont., Nev., N.M., Utah, Wis. and Wyo. With this expansion, AGR-Lite will now be available in 28 states for the 2007 insurance year.
“This insurance is a useful risk management tool, particularly for small diversified producers,” said Johanns. “It is based on individual farm revenue, so producers are offered a great deal of flexibility in how they manage their farm or ranch operations.”
AGR-Lite is a whole- farm revenue plan of insurance, developed by the Pennsylvania Department of Agriculture, providing protection against low revenue due to unavoidable natural disasters and revenue fluctuations. Policies are limited in size to a maximum liability of $1 million annually. Most farm-raised crops, animals, and animal products are eligible for protection. The plan uses a producer’s 5-year historical farm average revenue, as reported on IRS tax returns (Schedule F or equivalent forms) and the current year’s farm plan, as a basis to provide a level of guaranteed revenue for the insurance period.
The AGR-Lite plan can stand alone or be used in conjunction with most other federal crop insurance plans. It provides insurance coverage for multiple agricultural commodities under one insurance product and establishes revenue as a common denominator of insurance for all agricultural commodities on that farm.
Prior to this expansion, AGR-Lite was already available in the states of Ala., Conn., Del., Idaho, Ma., Md., Mass., N.H., N.J., N.Y., N.C., Ore., Penn., R.I., Vt., Va., Wash. and W.Va.
“More detailed information about AGR-Lite is available on the RMA Web site at: http://www.rma.usda.gov. Policy materials will also be available soon at the RMA Web site.