Basics of the new Whole Farm Revenue Protection (WFRP)
policy
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| Diverse family farms now have an additional risk management tool available. |
WFRP is a new crop insurance policy called for in the
2014 Farm Bill and developed by the USDA, Risk Management Agency. This newly
available crop insurance product is not intended for a single specific crop,
but for all the crops, livestock, and products that are grown, raised, or
produced on your farms.This product may be of special interest to diversified
and organic farms that do not have single crop policies or organic price
elections available.
This new crop insurance product is available as one
response to the needs of many farm families that previously had fewer choices
of risk management tools because of their highly diverse enterprises.
Producers
should start talking with their crop insurance agent if they are interested in
the policy to be prepared for the March 16th sales closing date for WFRP.
WFRP
is available in all states and counties of the eastern U.S.Some of the most
notable benefits this new insurance option offers include:
- An $8.5 million liability limit (an increase from $6.5 million under AGR and $1 million under AGR-Lite);
- 85% of historical revenue coverage level when at least three crops are grown (an increase over the previous 80% cap);
- a premium subsidy of up to 80% when at least two crops are grown (a significant increase over the highest subsidy rate of 59% provided under AGR-Lite);
- a premium discount for increased diversification stair stepped up to 7 crops;
- coverage for both crops and livestock (capped at 35% of expected revenue up to $1 million);
- inclusion of some incidental processing expenses necessary to make the commodity ready for market, such as washing, trimming, and packaging;
- replant coverage for a crop losses early enough for replanting; and
- the continued option to insure individual crops under separate crop policies (cannot be CAT level coverage).
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The WFRP Application
- Whole Farm History Report (last 5 tax years)
- IRS Tax Form 1040 Schedule F
- Farm Operation Report (Intended, Revised, Final)
- Allowable Expenses Worksheet
- Allowable Revenue Worksheet
- Beginning and end of year Inventory Reports (if applicable)
- Accounts Receivable and Payable Reports for beginning and end of year (if applicable)
- Market Animal and Nursery Inventory/Accounting Worksheet (if applicable)
- Verifiable complete marketing record for each commodity
The USDA, RMA fact sheet on this new risk management tool
is available at: http://www.rma.usda.gov/policies/2015/wfrpfactsheet.pdf
RMA provides this web site so we can search for certified
crop insurance sales agents:
http://www.rma.usda.gov/tools/agent.html
