What you need to know about new whole-farm revenue insuranceWhat you need to know about new whole-farm revenue insurance
Whole-Farm Revenue Protection is a new policy called for in the 2014 Farm Bill and developed by the Risk Management Agency that will allow farmers to insure all of their crops, livestock, and nursery and greenhouse crops for a revenue loss with a single policy.
November 17, 2014
Whole-Farm Revenue Protection is a new policy called for in the 2014 Farm Bill and developed by the Risk Management Agency that will allow farmers to insure all of their crops, livestock, and nursery and greenhouse crops for a revenue loss with a single policy rather than using individual crop policies. It is being offered as a pilot policy but all Southeast states are in the pilot area.
For many diversified farmers individual policies and price elections are often not available either for the crops being grown or in the county they are being grow in. Additionally, on highly diversified farms, where only a small amount of some crops or livestock is grown or raised, purchasing several separate polices often doesn’t make financial sense.
WFRP will be available in 44 states, more states than either of the two previously available whole-farm type policies, Adjusted Gross Revenue (AGR) or AGR-Lite. RMA has developed a map indicating in which states WFRP will be available.
For the first time, farmers in eight states, including Iowa, Indiana, Kentucky, Missouri, Nebraska, North Dakota, Ohio and South Dakota, will be able insure their entire farm revenue with one policy.
This new policy includes several changes over AGR and AGR-Lite. USDA recently announced that a farmer with two or more crops meeting the minimum diversification requirement can now receive an 80 percent premium subsidy under WFRP. WFRP includes a higher liability limit, higher coverage levels, a premium discount for diversification, inclusion of incidental processing expenses, and replant coverage.
RMA has released a fact sheet and a premium calculator to assist farmers in deciding if WFRP is right for them.
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