Yesterday, USDA announced the availability of a new whole-farm revenue policy, known as Whole-farm Revenue Protection (WFRP). WFRP will replace Adjusted Gross Revenue (AGR) and Adjusted Gross Revenue-Lite (AGR-Lite) starting in the 2015 crop insurance year. The new policy was required by the 2014 Farm Bill and developed by the USDA’s Risk Management Agency (RMA). WFRP will enable producers to insure their crops, livestock, and nursery and greenhouse crops for a revenue loss with a single policy rather than using individual crop policies. For many specialty crop and diversified producers, individual policies and price elections were not available. This put producers at a risk management disadvantage but also made it more difficult for them to access the credit needed to start and grow their agricultural operation.
WFRP at a Glance:
• Coverage levels up to 85% with an $8.5 million liability limit • 80% of the premium will be subsidized for coverage between 50% and 70% • Provides coverage for all unavoidable natural causes (pest, weather, price loss, etc) • Premium discounts for additional diversification up to 7 crops • Allows post-production expenses that do not add value to the crop to be covered • Geographic expansion of whole-farm insurance availability
Today the Risk Management Agency of the USDA announced major changes to Whole Farm Revenue Protection (WFRP), including expanded access to beginning farmers and making the policy available in every state and county in the country. These changes will be effective starting in the 2016 crop year.
While U.S. consumer demand for organic grows exponentially, domestic production to meet that demand has not kept up, requiring greater imports of organic production to fill the gap. The organic program funding in the new Farm Bill will help U.S. farmers and handler better meet that demand.
Join ASAP, along with the RAFI, NC Cooperative Extension, and the Farm Service Agency for a series of FREE workshops designed to help farmers manage risk on the farm. Register online or by phone (828-236-1282).