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
citrus greening symptoms on small trees
Insect & Disease Update
February 9, 2016
University Of Florida Research Receives Nearly $7 Million To Fight Citrus Greening
A big chunk of the federal funding will focus on growing the bacterium in a lab. Read More
young lady goofing around with orange slices for eyes
Citrus
February 9, 2016
Revised Forecast Yields Small Victory For Florida Oranges
Updated USDA estimate holds serve again; hasn’t dipped since December. Read More
two glass goblets of olive oil
Citrus
February 4, 2016
Can Olive Oil Grease Skids For Florida’s Slipping Citrus Trade?
Researchers, interested growers help launch new industry. Read More
Sunkist organic lemons being harvested at the Donlon Ranch in Ventura County, CA by Jane and Ned Donlon, 5th and 6th generation growers, respectively.
Citrus
February 3, 2016
Sunkist Expands Organic Portfolio
With the organic citrus sector growing three times as fast as conventional, the 123-year-old cooperative is keeping up with the times. Read More
money
Citrus
February 3, 2016
Syngenta OKs Buyout By ChemChina
Deal valued at more than $43 billion; Syngenta management team to stay intact. Read More
Flooded vegetable field in South Florida
Citrus
February 3, 2016
Historic Rainfall Hampering South Florida Farms
El Niño express delivering floods, uncertainty for crops. Read More
Rainy welcome at 2016 Florida Citrus Show
Citrus
February 1, 2016
Growers, Industry Leaders Weather The Storm At 2016 Florida Citrus Show
Not even an El Niño-fueled, two-day soaker can keep a flood of attendees from the annual gathering. Read More
The Latest
Citrus
February 13, 2016
5 Questions With The New American Farm B…
Zippy Duvall weighs in on priority issues. Read More
Citrus
February 12, 2016
There’s No Excuse For Farmers To B…
Studies show if you're not watching the weather, you should be. Read More
Citrus
February 10, 2016
Who Will Be Crowned Miss Florida Citrus …
Contestants invited to carry on a time-old industry tradition. Read More
Citrus
February 9, 2016
Revised Forecast Yields Small Victory Fo…
Updated USDA estimate holds serve again; hasn’t dipped since December. Read More
Citrus
February 4, 2016
Can Olive Oil Grease Skids For Florida’s…
Researchers, interested growers help launch new industry. Read More
Citrus
February 3, 2016
Sunkist Expands Organic Portfolio
With the organic citrus sector growing three times as fast as conventional, the 123-year-old cooperative is keeping up with the times. Read More
Citrus
February 3, 2016
Syngenta OKs Buyout By ChemChina
Deal valued at more than $43 billion; Syngenta management team to stay intact. Read More
Citrus
February 3, 2016
Historic Rainfall Hampering South Florid…
El Niño express delivering floods, uncertainty for crops. Read More
Citrus
February 1, 2016
Growers, Industry Leaders Weather The St…
Not even an El Niño-fueled, two-day soaker can keep a flood of attendees from the annual gathering. Read More
Citrus
January 23, 2016
Too Much Cheerleading Has EPA In Deep Wa…
These days, far too often, elected representatives of the people are abdicating their responsibilities to federal agencies. The result is rules like WOTUS. Read More
Citrus
January 22, 2016
It’s Official: 2015 Was Earth’s Wa…
NASA, NOAA analyses reveal record-shattering statistics regarding global temperatures this past year. Read More
Citrus
January 21, 2016
Chance Of Profits Up For Growers Tuned I…
UF/IFAS study confirms how paying attention to the 10-day forecast can affect a farmer’s bottom line. Read More
Citrus
January 20, 2016
Agriculture Agents Intercept Invasive Be…
Notorious wood borer hitched a ride in a container of cucumbers arriving from Costa Rica. Read More
Citrus
January 20, 2016
USDA Report: Pesticide Residues Not A Fo…
Following monthly samplings, survey finds more than 99% of products sampled fall below EPA tolerances for pesticide residues. Read More
Citrus
January 19, 2016
Let’s Raise A Glass To FloridaR…
Challenges with unique solutions are needed to make the agriculture sector stronger. Read More
Citrus
January 18, 2016
Farming Fertility Practices Evolving Wit…
Improving water quality while maintaining production is being achieved in American agriculture. Read More
Citrus
January 16, 2016
3 Products To Better Serve Your Soil
Check out a sampling of the latest soil health enhancers. Read More
Citrus
January 15, 2016
Emphasis On Soil Health Moving Growers T…
There are benefits to be gained by taking care of what lies beneath. Read More
[gravityform id="62" title="false" description="false"]