The 2014 Farm Bill provided direction to the Risk Management Agency (RMA) to create a Whole Farm Revenue Protection (WFRP) pilot program to begin in the 2015 insurance year. The project provided a risk management safety net for all commodities on the farm under one insurance policy. WFRP covers $8.5 million in a diversified farm’s insured revenue with a maximum level of $17 million at a 50 percent coverage level. WFRP covers against the loss of insured revenue due to an unavoidable natural cause of loss that occurs during the insurance period. WFRP may be purchased alone or with other Federal Crop Insurance Corporation approved policies. Farms with one commodity qualify for the maximum premium subsidy. The program does not cover timber, forest, forest products, and animals for sport, show, or pets.
There are several key requirements to qualify for WFRP. Most producers need five consecutive years of Schedule F tax forms. The exception is for beginning farmers or ranchers who must supply three years of forms. Both producers and crop insurance agents find this requirement difficult to achieve.
With Michigan’s diverse agricultural commodities, individuals have started discussing increased utilization of this product and the likelihood of it becoming one of the best tools in a farmer’s risk management toolbox.
AFBF: #225 Risk Management/Crop Insurance, #239 National Farm Policy
Can the New Whole Farm Revenue Protection Insurance pilot product be improved?
USDA Risk Management Agency