What Growers Should Know About Whole-Farm Revenue Protection

Whole-Farm Revenue Protection (WFRP) insures revenue across eligible commodities under one policy, making it a potential fit for diversified farms or those selling through multiple markets, according to Penn State Extension specialists.

Unlike traditional crop insurance, which focuses on individual commodities, WFRP protects approved farm revenue when it falls below insured levels. WFRP can cover up to $17 million in insured revenue, with 2026 levels ranging from 50% to 90%.

“WFRP is not a guarantee that the farm will make a profit,” says Carla Snyder, Associate State Program Leader for business, entrepreneurship, and economic development with Penn State Extension. “It’s also not a guarantee that every lost dollar in sales will be reimbursable.”

Higher input costs alone may reduce profits without triggering a covered loss. The policy instead protects approved revenue against qualifying losses caused by unavoidable natural events.

WHERE WFRP MAY FIT

Coverage is based on historical revenue and current year plan, generally using the lower of expected revenue or historical average allowable revenue, subject to adjustments.

Most producers need five consecutive years of Schedule F filings or other applicable farm tax records. Beginning farmers and ranchers may qualify with fewer.

“WFRP can be particularly useful for farms producing commodities that might have limited conventional crop insurance options,” says Miranda Harple, Director of Penn State’s Pennsylvania Center for Plant Excellence.

The program accommodates multiple sales channels, including direct markets and wholesale accounts, as well as organic production and pricing.

WFRP can complement crop-specific insurance, though interactions between policies can affect premiums and claims.

Harple recommends contacting an insurance agent in early fall or winter to review records, estimate revenue, and assess coverage options before application deadlines.

REVENUE AND RECORDS

Penn State recommends considering how much revenue must be protected to maintain cash flow and meet debt obligations.

For example, a farm with $500,000 in approved revenue and 80% coverage would have a $400,000 revenue protection threshold. Actual indemnities depend on policy provisions and adjustments.

Broader revenue protection comes with substantial documentation requirements.

“Good records don’t just help you file taxes; they help you establish the economic history of the farm and may be critical evidence if you do have a claim,” says Jodi Gauker, Penn State Extension educator in business development.

For specialty crop operations, records may include farmers’ market and CSA sales, wholesale invoices, point-of-sale reports, bank deposits, and inventory documentation.

“The goal is not simply just to have a bank statement,” Gauker says. “The goal is to establish what was sold, when was it sold, how much was sold, and what revenue was generated.”

Perennial crop growers may need a pre-inspection during each insurance period.

WHEN A LOSS OCCURS

Growers should promptly contact their insurance agent following a loss rather than waiting until tax season. Documentation should include weather conditions, crop damage, production losses, market disruptions, salvage, sales, and unsold inventory. Photographs can support claims but cannot replace financial records.

Indemnities involve more than subtracting actual sales from expected sales. Expense reductions, inventory adjustments, other insurance payments, and policy provisions can affect calculations.

WHY AREN’T MORE GROWERS USING IT?

Despite nationwide availability, WFRP enrollment remains limited.

USDA Risk Management Agency data presented by Penn State show participation peaking at 2,833 policies in 2017 before declining to 1,795 in 2022. Enrollment rebounded to 2,120 in 2024, when liabilities reached approximately $2.96 billion.

“I think farmers are intimidated by providing their financial information to the government,” Gauker says.

Recordkeeping represents another hurdle, particularly for family farms.

“There could be more reward, too, at the end because you’re actually protecting your actual revenue,” she says.

For smaller operations, USDA offers Micro Farm, a WFRP option with simplified paperwork and reporting requirements. The Penn State presentation lists eligibility for farms with revenue up to $350,000. Micro Farm participation increased from 26 policies in 2022 to 96 in 2023 and 136 in 2024.

For specialty crop growers, the question is whether the additional documentation is worth protecting the farm’s overall revenue rather than insuring a single crop.