What is Whole Farm Revenue Protection (WFRP)?
• Federally subsidized crop insurance.
• Covers the revenue of the entire operation.
• Based on previous years’ revenue level.
• Allows you to insure crops and livestock that cannot be insured otherwise.
• WFRP is available in every county of every state.
I’ve never been able to buy crop insurance for the crops I grow or the livestock I raise in the county where I live.
• WFRP may be a helpful risk management tool for you. It provides protection for a wide variety of crops and livestock where coverage was not previously available.
What crops or livestock will WFRP cover?
WFRP protects your farm against the loss of farm revenue on a wide variety of commodities:
• Which can include fruits, vegetables, nuts, organic crops, specialty grains, and livestock.
• That are produced during the insurance period, whether they are sold or not.
• Which are purchased for resale during the insurance period.
• Except timber, forest, and forest products; and animals for sport, show, or pets.
WFRP rewards farmers and ranchers with diversified operations.
• A higher subsidy and lower premium level is available if you grow or raise several commodities. Speak with your insurance agent to learn more.
What does WFRP cover, and at what level of coverage?
• Similar to many other crop insurance products, you can purchase WFRP for losses ranging from 50 to 85 percent. Catastrophic coverage is not available.
• A policy can cover up to $8.5 million in insured revenue.
• There are limits on the amount of coverage you can purchase for livestock and for nursery revenue: $1 million in revenue for both. The 2018 farm bill asked Risk Management Agency to consider increasing these limits. Check with your crop insurance agent for more information.
• WFRP will cover up to 50 percent in total revenue from commodities purchased for resale.
• WFRP does not cover hemp in 2019. Watch the Risk Management Agency website at rma.usda.gov for announcements regarding hemp coverage in 2020.
What do I need to purchase WFRP?
• Identify a crop insurance agent to work with. Research crop insurance agents by using Risk Management Agency’s Crop Insurance Locator tool.
• Collect the Schedule F form from your tax records for the previous five years. If you are a beginning farmer, provide three years of tax documents. Under WFRP, you are considered a beginning farmer or rancher if you have 10 or fewer years of farming experience.
• If your operation is growing, gather information about that, such as documentation of increased acres, adding equipment, or other records.
• WFRP can insure an increase in your inventory of a particular commodity. Work with your insurance agent to file a beginning inventory report.
• Work with your agent to determine expected value and yield for the coming year. Pricing documentation may be needed.
• The filing deadline for WFRP in many states is March 15, but it is never a bad time to begin building relationships with insurance agents.
What questions should I ask my agent about WFRP?
• Talk with your agent about what to do if you experience a loss.
• Your agent will likely tell you that within 72 hours of discovering your revenue may be dropping below your insured level, you will need to submit a “notice of loss.”
• Since the final loss is determined by your revenue for the year, after you file your taxes for that year, you will then file your claim. A claim needs to be submitted within 60 days of submitting your tax forms to the Internal Revenue Service.
How does WFRP work with my other crop insurance?
• WFRP can be combined with other insurance products. Speak with your agent to learn more.
What documentation about my operation is required?
• Similar to other crop insurance plans, you file three reports with your agent: an intended farm operation report, a revised farm operation report, and a final farm operation report.
What losses are covered under WFRP?
• Loss of revenue due to unavoidable natural causes that occur during the insurance period. This can include a decline in market price unless the Federal Crop Insurance Corporation specifically determines otherwise.
My operation is growing and my revenue next year is projected to be much higher than it has been for the previous five years. Can I still benefit from WFRP?
• Yes. WFRP includes provisions that allow you to insure higher projected revenue based on expansions within your operation. Speak with your insurance agent to learn more.
• Risk Management Agency: rma.usda.gov/en/Fact-Sheets/National-Fact-Sheets/Whole-Farm-Revenue-Protection-2019
• Risk Management Agency’s Cost Estimator Tool: ewebapp.rma.usda.gov/apps/costestimator/
How can I decide if crop insurance is right for me?
• Is there a time in the season when a high portion of your revenue for the calendar or fiscal year is in the field and vulnerable to revenue? Crop insurance might be for you.
• If you experience a major loss of revenue, would you have trouble paying your debts? Crop insurance might be a helpful risk management tool for you.
• Are you highly diversified with risk spread across several crops and enterprises? Your business model might be sufficient for risk management.
• Speak with an insurance agent to learn more.