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
November 14, 2017
USDA Announces Grants to Promote IPM Practices
Methyl bromide transition, crop protection management among programs funded. Read More
Biocontrols Conference
November 13, 2017
Biostimulants Making Big Strides as It Seeks Organization
The inaugural BiocontrolsSM USA East Conference & Expo in Orlando, FL, featured two days of educational sessions focused on how Read More
Biocontrols Conference
November 13, 2017
So What Exactly Are Biostimulants, Anyway?
Biostimulants are one of the hottest new topics in specialty crops, but most growers could use a little clarity on where they fit. Here are the basics you need to know. Read More
Biocontrols Conference
November 13, 2017
Microbial-based Biostimulants: Big Potential in Small Packages
There is no shortage of interest in or questions and opinions about biostimulants. Many are working to develop them as Read More
Citrus fruit drop from Hurricane Irma as seen during Biocontrols East 2017 tour
Citrus
November 9, 2017
Forecasters Subtract another Slice from Florida Citrus
USDA’s second stab at the season thins orange crop by another 7%; would be lowest output in more than 70 years. Read More
Citrus
November 7, 2017
New Tool Helps Growers Improve Phosphorus Efficiency
Technology newly available to specialty crop growers provides economic and environmental benefits. Read More
Citrus
November 7, 2017
Comments Sought in Ag Water Component of FSMA
Growers and other interested parties are encouraged by United Fresh to weigh in on agricultural water requirements in the Food Safety Modernization Act. Read More
Sun-and-moon
Citrus
November 7, 2017
Study: Circadian Clock in Plants May Boost Water Efficiency
The Texas A&M team that won a 2017 Nobel Prize for Physiology or Medicine on circadian rhythm at a molecular level turn their attention to plants. Read More
Citrus stew courtesy of Irma
Citrus
November 6, 2017
South Florida Wringing out From Record-Setting Wet Season
Tropical torrents, along with a persistent precipitation pattern, helps break 70-year high-water mark. Read More
Citrus
November 2, 2017
Field Scouting Guide: Yellow Nutsedge
Follow these tips to identify and manage this wily weed. Read More
Citrus
November 1, 2017
Produce Industry Leaders Concerned About H-2C Amendments
It’s been a long time since significant immigration reform that will help American growers has passed Congress. The most promising Read More
Joseph Lowell Loadholtz
Citrus
October 30, 2017
Florida Agricultural Hall of Fame Makes Room for Four More
Outstanding lifetime achievers in the state’s farming sector join elite list of honorees. Read More
Citrus
October 25, 2017
After a Delay, H-2C Is Getting a Committee Review
The Ag Worker Act must make it past the Judiciary Committee to have a chance of making it to the House floor. Read More
Immokalee< FL, Farm and Grove aerial view
Business Planning
October 25, 2017
Matchmaking Made Easy for Land Owners and Seekers
New website provides revenue potential for property holders. Read More
Benny McLean talks Tamarixia wasps during Biocontrols East 2017 tour
Biocontrols Conference
October 23, 2017
Biocontrol Gains Traction in the East
Biological control — whether you’re talking about biochemicals, microbial products, beneficials, or even the relatively new category of biostimulants — Read More
The Latest
Citrus
November 17, 2017
Alico Overhaul to Cut Citrus Production …
Company restructuring aims to integrate legacy businesses and reduce input costs significantly. Read More
Citrus
November 17, 2017
Sustainable Farming Projects in Florida …
St. Johns River Water Management District grants backing to 12 on-farm plans aimed at resource conservation and nutrient reduction. Read More
Citrus
November 17, 2017
Florida Citrus Tree Rehab in Full Swing …
With Hurricane Irma well in the rear view, growers and researchers hope to work groves back to a productive state as HLB rages on. Read More
Citrus
November 14, 2017
USDA Announces Grants to Promote IPM Pra…
Methyl bromide transition, crop protection management among programs funded. Read More
Biocontrols Conference
November 13, 2017
Biostimulants Making Big Strides as It S…
The inaugural BiocontrolsSM USA East Conference & Expo in Orlando, FL, featured two days of educational sessions focused on how Read More
Biocontrols Conference
November 13, 2017
So What Exactly Are Biostimulants, Anywa…
Biostimulants are one of the hottest new topics in specialty crops, but most growers could use a little clarity on where they fit. Here are the basics you need to know. Read More
Biocontrols Conference
November 13, 2017
Microbial-based Biostimulants: Big Poten…
There is no shortage of interest in or questions and opinions about biostimulants. Many are working to develop them as Read More
Citrus
November 9, 2017
Forecasters Subtract another Slice from …
USDA’s second stab at the season thins orange crop by another 7%; would be lowest output in more than 70 years. Read More
Citrus
November 7, 2017
New Tool Helps Growers Improve Phosphoru…
Technology newly available to specialty crop growers provides economic and environmental benefits. Read More
Citrus
November 7, 2017
Comments Sought in Ag Water Component of…
Growers and other interested parties are encouraged by United Fresh to weigh in on agricultural water requirements in the Food Safety Modernization Act. Read More
Citrus
November 7, 2017
Study: Circadian Clock in Plants May Boo…
The Texas A&M team that won a 2017 Nobel Prize for Physiology or Medicine on circadian rhythm at a molecular level turn their attention to plants. Read More
Citrus
November 6, 2017
South Florida Wringing out From Record-S…
Tropical torrents, along with a persistent precipitation pattern, helps break 70-year high-water mark. Read More
Citrus
November 2, 2017
Field Scouting Guide: Yellow Nutsedge
Follow these tips to identify and manage this wily weed. Read More
Citrus
November 1, 2017
Produce Industry Leaders Concerned About…
It’s been a long time since significant immigration reform that will help American growers has passed Congress. The most promising Read More
Citrus
October 30, 2017
Florida Agricultural Hall of Fame Makes …
Outstanding lifetime achievers in the state’s farming sector join elite list of honorees. Read More
Citrus
October 25, 2017
After a Delay, H-2C Is Getting a Committ…
The Ag Worker Act must make it past the Judiciary Committee to have a chance of making it to the House floor. Read More
Business Planning
October 25, 2017
Matchmaking Made Easy for Land Owners an…
New website provides revenue potential for property holders. Read More
Biocontrols Conference
October 23, 2017
Biocontrol Gains Traction in the East
Biological control — whether you’re talking about biochemicals, microbial products, beneficials, or even the relatively new category of biostimulants — Read More