Benefits of Whole Farm Revenue Protection

THE BENEFITS OF WHOLE FARM REVENUE PROTECTION

Whether you are a large-scale producer working on thousands of acres, or a smaller farmer growing several types of crops and raising livestock, Whole-Farm Revenue Protection (WFRP) can offer a risk management safety net for all commodities on the farm under one insurance policy. Farms with up to $8.5 million in revenue are eligible for this protection.

WHAT IS WHOLE FARM REVENUE PROTECTION?

WFRP is a revenue insurance policy that serves to protect a farmer’s entire operation, not just one crop. For diversified farms that may not have access to separate insurance policies for each crop they grow, Whole-Farm Revenue Protection can insure all crops and livestock under a single policy.

GET STARTED TODAY

To get covered with Whole-Farm Revenue Protection, contact a licensed insurance agent in your state. Click to or request a quote.

WHERE IS WFRP AVAILABLE?

Whole-Farm Revenue Protection is available in all counties in all 50 states.

IMPORTANT DATES

SALES CLOSING, CANCELLATION, TERMINATION DATES AND FARM OPERATION REPORT

California	February 28
Nevada, Utah, Colorado, Kansas, New Mexico, Hawaii	March 15

REVISED FARM OPERATION REPORT DATES

Calendar Year Filers	July 15
Early Fiscal Year Filers	July 15
Final Farm Operation Report	The earlier of claim time or the sales closing date for the following year.

WHAT DOES WHOLE-FARM COVER?

WFRP protects your farm against the loss of farm revenue that you expect to earn or will get from:

Commodities you produce during the insurance period, whether they are sold or not;
Commodities you buy for resale during the insurance period;
Livestock and nursery production up to $2 million
All commodities on the farm except timber, forest and forest products, and animals for sport or pets.

The policy also provides replant coverage:

For annual crops, except those covered by another policy;
Equal to the cost of replanting up to a maximum of 20 percent of the expected revenue; and
When the lesser of 20 percent or 20 acres of the crop needs to be replanted.

The approved revenue amount is determined on your Farm Operation Report and is the lower of the expected revenue for the insurance year or your whole-farm historic average revenue. If established criteria is met, historic revenue may be eligible for indexing or expanding operations calculations which would increase the revenue covered by WFRP.

Coverage levels range from 50 percent to 85 percent.

Catastrophic Risk Protection (CAT) coverage is not available. The number of commodities produced on the farm are counted using a calculation that determines:

If the farm has the diversification needed to qualify for the 80 and 85 percent coverage levels (there is a 3 commodity requirement);
The amount of premium rate discount you will receive due to farm diversification; and
To determine the subsidy amount.

You may purchase WFRP alone or with other individual buy-up level (additional coverage) Federal crop insurance policies. When you buy WFRP with another policy, the WFRP premium is reduced due to the coverage provided by the other policy. Any indemnities received on individual policies will be considered revenue under the WFRP policy.

If you have other Federal crop insurance policies at catastrophic levels of coverage, you do not qualify for WFRP.

You may purchase WFRP coverage and coverage under the Noninsured Crop Disaster Assistance Program (NAP) on the same commodity in the same year. You may receive a NAP indemnity and it will not be counted as revenue-to-count under the WFRP policy. State and federal disaster payment are also excluded from revenue-to-count for the WFRP policy.

COVERAGE LEVEL	COMMODITY COUNTY (MINIMUM REQUIRED)	MAXIMUM FARM APPROVED REVENUE
85	3	$10,000,000
80	3	$10,625,000
75	1	$11,333,333
70	1	$12,147,857
65	1	$13,067,923
60	1	$14,166,167
55	1	$15,454,545
50	1	$17,000,000

CAUSES OF LOSS

WFRP provides protection against the loss of insured revenue due to an unavoidable natural cause of loss, that occurs during the insurance period and will also provide carryover loss coverage if you are insured the following year. See the policy for a list of covered causes of loss.

LOSSES UNDER WHOLE-FARM REVENUE PROTECTION

Claims are settled after taxes are filed for the insurance year. A loss under the WFRP policy occurs when the WFRP revenue-to-count for the insured year falls below the WFRP insured revenue. Revenue-to- count for the insured year is:

Revenue from the tax form that is “approved revenue” according to the policy;
Adjusted by excluding inventory from commodities produced in previous years;
Adjusted by including the value of commodities provided that have not yet been harvested or sold; and
Any other adjustments required by the policy such as those from uninsured causes of loss.

If the farm operation does not have expenses during the insurance year of at least 70 percent of the “approved expenses” the insured revenue amount will be reduced by 1 percent for each percentage point the actual approved expenses are below 70 percent of the approved expenses.

PREMIUM SUBSIDY

Farms with two or more commodities will receive a whole-farm premium subsidy as long as the minimum diversification requirements are met. Farms with one commodity will receive the basic level of premium subsidy.

WFRP SUBSIDY FACTORS

COVERAGE LEVEL	0.5	0.55	0.60	0.65	0.70	0.75	0.80	0.85
COMMODITY COUNT –1	0.670	0.640	0.640	0.590	0.590	0.550	N/A	N/A
COMMODITY COUNT –2	0.800	0.800	0.800	0.800	0.800	0.800	N/A	N/A
COMMODITY COUNT –3	0.800	0.800	0.800	0.800	0.800	0.800	0.710	0.560

GET COVERED WITH WHOLE-FARM REVENUE PROTECTION

Our insurance specialists are here to help you find the right coverage for your operation. Contact your local American AgCredit insurance agent to see if your operation is eligible for coverage under Whole-Farm Revenue Protection.