Whole Farm Revenue Protection Insurance
The Risk Management Agency, part of the United States Department of Agriculture, released the Whole Farm Revenue Protection in 2014. This plan is available in every county in every state across the nation. One of the first plans offered everywhere, it is geared to offer a risk management safety net for all commodities on the farm under one insurance policy. The plan is set with a maximum insured revenue of $8.5 million. This covers all commodities, both crop and livestock or conventional and organic. It can be for those that market locally, regionally, direct or have specialty niches.
At Monte Johnson Insurance we service California, Oregon, Washington, Idaho, Nevada and Arizona. Whole Farm Revenue Protection is available in each county of each of these states. It doesn’t matter whether you have orchards, vineyards, cattle, hogs, wheat, potatoes or numerous other commodities you can qualify for a Whole Farm Revenue Protection plan.
Check out the RMA’s WFRP Factsheet.
The Whole Farm Revenue Protection Insurance provides protection against loss of insured revenue due to an unavoidable natural cause of loss, that occurs during the insurance period and will also provide carryover loss coverage if you are insured the following year. The approved revenue amount is determined on your Farm Operation Report and is the lower of the expected revenue or your whole farm historic average revenue. Coverage can be elected on 5% increments from 50% to 85% depending on how many commodities you have. Whole Farm Revenue Protection can also help serve as another plan with MPCI policies, you don’t have to have one or the other.
In order to get an estimate you will need five years of your tax history, or schedule F. You will also need a breakdown of revenue per commodity. That can give you an estimate of the cost. If you decide to move forward, an application must be completed before the applicable sales closing date. Some of the initial forms that have to be completed afterwards are a whole farm history report and a farm operation report. Your intended farm report can be revised halfway through the year if you change your operation’s plans. During the year, notices of loss for any event need to be opened. However, your Whole Farm Revenue Claim process won’t really begin until after you file your taxes. The process will include a thorough review of your records to confirm revenue and expenses. Adjustments are made on inventory to count that was harvested but not sold in that year. A grower will work very closely with their adjuster to complete every step of the process and verify all records.
Premiums are based on your total liability, and depend on your subsidy. Farms with two or more commodities will receive a whole farm premium subsidy as long as the minimum diversification requirements are met. Farms with one commodity will received the basic level of premium subsidy. Please contact us at Monte Johnson Insurance for more information regarding Whole Farm Revenue Protection.
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