Whole Farm Revenue Protection Adds Up For Crop Insurance Seekers

A crop insurance product for practically all commercial growers, farmers, and ranchers is scheduled to become available this fall. The 2014 Farm Bill mandates a whole-farm crop insurance policy option, making the program dubbed “Whole Farm Revenue Protection” available to specialty crop, organic, and diversified growers selling multiple commodities, including specialty crops to wholesale markets. This new policy also is designed to meet the risk management needs of diversified crop or livestock producers including those selling to local and regional markets, farm identity preserved markets, or direct markets.

USDA’s Risk Management Agency (RMA) developed the product to focus on protecting the historical adjusted gross revenue averages of agricultural products produced by farmers and ranchers across the majority of the U.S.

According to Jeff Albritton, vice president of Stallings Crop Insurance Corp., this new crop insurance option is a game-changer. “This allows us to provide coverage to all those folks for which no crop insurance policy currently exists,” he says. “We are talking watermelons, strawberries, squash, lettuce, cabbage, celery, fish farms, shrimp farms, etc.”

Under The Umbrella

Farmers can continue to insure crops with current insurance plans under the Multi-Peril Crop Insurance (MPCI) program while incorporating revenue protection on the previously uninsurable crops, gaining an overall greater umbrella of risk protection with a Whole Farm Revenue Protection Policy. The basis for establishing your adjusted gross revenue is derived from five previous years of an entity’s Tax Form Schedule “F” (profit or loss from farming).

Whole Farm Revenue Protection Policy offers buy-up coverage levels of 50% to 85% at 5% increments. There are some specific requirements for certain crops and types of livestock, which producers will need to address, Albritton adds. “For instance, a grower with strawberries, blueberries, watermelons, and citrus would qualify for a whole farm revenue policy as long as their total insured revenue is $8.5 million or less on the sales closing date of Feb. 28.”
The currently available Adjusted Gross Revenue (AGR) and AGR Lite will be discontinued in 2015 and only offered limits of $6.5 million and $1 million respectively.

How It Works

“Let’s say a growing operation farms three or more commodities, has an established adjusted gross income of $1,000,000, and elected to purchase 85% coverage. This means this operation has a revenue guarantee of $850,000,” Albritton says. “If a loss were to occur that reduced its annual revenues below $850,000, the operation would be eligible for a payable claim if all other requirements of the policy had been met.”

Programs such as Whole Farm Revenue Protection is a result of USDA’s commitment to small and mid-sized producers that manage diversified operations to provide subsidized insurance protection products for effective risk management, Albritton concludes. “Growers of crops without the support of traditional multiple peril products should consider visiting with a qualified crop insurance agent to seek additional information on how this tool could protect their income for all produce in their portfolio.”

Topics: ,

Leave a Reply

Citrus Stories
farm labor pic for web
Citrus
April 20, 2017
Farm Labor Is in Crisis
To have a great crop potentially rot in the field because workers can’t be sourced is probably worse than a weather event taking out production. Read More
Barnes Farm cabbage field in Hastings, FL
Citrus
April 18, 2017
Florida Growers Seeking Inspiration Need Not Look Far
The firsthand experience of speaking with farmers and actually seeing all the hard work, knowledge, ingenuity, and people behind where our food comes from is invaluable. Read More
Citrus
April 18, 2017
Citrus Growth Path Uncertain as Florida Real Estate Surges
According to the latest Lay of the Land Market Report, the waiting game for a solution to greening has tempered groves sales. Read More
drought management; irrigation; water management
Citrus
April 17, 2017
Florida Flush with Water Shortage Warnings
Conservation practices preached throughout the state as exceptionally dry pattern persists.  Read More
Citrus
April 17, 2017
Natural Enemies for Asian Citrus Psyllid
The eventual spread of Huanglongbing (HLB), or citrus greening, to commercial groves in California seems inevitable. But the devastation seen Read More
Georgia Citrus Association grove tour meeting
Citrus
April 15, 2017
Georgia Citrus Seeking to Make Its Mark
Florida's neighbors to the north are getting serious about citrus, for good reason. Read More
Specialty vegetable farm market display
Citrus
April 14, 2017
How Florida Growers Are Agritaining and Gaining
Come one, come all — big and small — there are multiple ways to benefit from Agritourism. Read More
Citrus
April 12, 2017
Florida Company Seeks Approval of Novel Approach to Fight Citrus Greening
USDA prepares impact statement on technology that introduces a spinach defensin protein into trees via the tristeza virus. Read More
Laboratory beakers
Citrus
April 12, 2017
USDA Announces Nearly $22 Million in HLB Research Funding
Agency has invested $57 million on the deadly citrus disease since 2014. Read More
Citrus
April 11, 2017
Florida Citrus Stuck in Crop Forecast Funk
Latest estimate from USDA shows no change for oranges; grapefruit count gets squeezed. Read More
Illustration of CRISPR-Cas9
Citrus
April 10, 2017
BASF Licenses CRISPR-Cas9 Technology for Agriculture Use
Genome-editing from Broad Institute has potential to be a more precise tool to improve ag products. Read More
Hurricane Matthew satellite image as it brushed past Florida
Citrus
April 6, 2017
Mild or Wild? Here Is Your 2017 Atlantic Hurricane Season Outlook
Possible return of El Niño climate phase could sap strength out of any stormy scenarios. Read More
Citrus
April 5, 2017
Chlorpyrifos’ Ban Reversed: Researchers React
Last week, EPA declined to ban the pesticide, which had been recommended for removal during the Obama administration. Read More
Citrus
March 31, 2017
FMC to Acquire Portion of DuPont Crop Protection Portfolio
Deal makes FMC the fifth largest agriculture chemical company, valued at $3.8 billion annually. Read More
Citrus
March 31, 2017
Latest Snowpack Report is Welcomed News for California Farmers
March reading shows 164% of historical average. Read More
The Latest
Citrus
April 24, 2017
Who Will Be Florida’s next Woman of the …
Nomination period now open for longstanding recognition from FDACS. Read More
Citrus
April 23, 2017
Bio Huma Netics, Inc., and Mesa Verde Re…
Strategic alliance between the two companies is designed to offer customers greater access to products. Read More
Citrus
April 21, 2017
Alliance Stepping Up Efforts to Protect …
The Specialty Crop Farm Bill Alliance has kicked off its efforts to communicate to Congress its priority needs for the Read More
Citrus
April 20, 2017
Farm Labor Is in Crisis
To have a great crop potentially rot in the field because workers can’t be sourced is probably worse than a weather event taking out production. Read More
Citrus
April 18, 2017
Florida Growers Seeking Inspiration Need…
The firsthand experience of speaking with farmers and actually seeing all the hard work, knowledge, ingenuity, and people behind where our food comes from is invaluable. Read More
Citrus
April 18, 2017
Citrus Growth Path Uncertain as Florida …
According to the latest Lay of the Land Market Report, the waiting game for a solution to greening has tempered groves sales. Read More
Citrus
April 17, 2017
Florida Flush with Water Shortage Warnin…
Conservation practices preached throughout the state as exceptionally dry pattern persists.  Read More
Citrus
April 17, 2017
Natural Enemies for Asian Citrus Psyllid
The eventual spread of Huanglongbing (HLB), or citrus greening, to commercial groves in California seems inevitable. But the devastation seen Read More
Citrus
April 15, 2017
Georgia Citrus Seeking to Make Its Mark
Florida's neighbors to the north are getting serious about citrus, for good reason. Read More
Citrus
April 14, 2017
How Florida Growers Are Agritaining and …
Come one, come all — big and small — there are multiple ways to benefit from Agritourism. Read More
Citrus
April 12, 2017
Florida Company Seeks Approval of Novel …
USDA prepares impact statement on technology that introduces a spinach defensin protein into trees via the tristeza virus. Read More
Citrus
April 12, 2017
USDA Announces Nearly $22 Million in HLB…
Agency has invested $57 million on the deadly citrus disease since 2014. Read More
Citrus
April 11, 2017
Florida Citrus Stuck in Crop Forecast Fu…
Latest estimate from USDA shows no change for oranges; grapefruit count gets squeezed. Read More
Citrus
April 10, 2017
BASF Licenses CRISPR-Cas9 Technology for…
Genome-editing from Broad Institute has potential to be a more precise tool to improve ag products. Read More
Citrus
April 6, 2017
Mild or Wild? Here Is Your 2017 Atlantic…
Possible return of El Niño climate phase could sap strength out of any stormy scenarios. Read More
Citrus
April 5, 2017
Chlorpyrifos’ Ban Reversed: Resear…
Last week, EPA declined to ban the pesticide, which had been recommended for removal during the Obama administration. Read More
Citrus
March 31, 2017
FMC to Acquire Portion of DuPont Crop Pr…
Deal makes FMC the fifth largest agriculture chemical company, valued at $3.8 billion annually. Read More
Citrus
March 31, 2017
Latest Snowpack Report is Welcomed News …
March reading shows 164% of historical average. Read More