Whole Farm Revenue Protection (WFRP)
WFRP provides a risk management safety net for all commodities on the farm under one insurance policy. This insurance plan is tailored for any farm with up to $8.5 million in insured revenue, including farms with specialty, or organic commodities (both crops and livestock), or those marketing to local, regional, farm-identity preserved, specialty, or direct markets. The amount of revenue that can be covered with a WFRP insurance policy is the lower of the revenue expected on your current year’s farm plan or the five-year historic income adjusted for growth.
WFRP insurance provides coverage against the loss of revenue that you expect to earn or will obtain from commodities you produce or purchase for resale during the insurance period under your one insurance policy.
WFRP is available in all 50 states and counties within each state. For calendar year filers and fiscal year filers with a fiscal year beginning August 1 or earlier, sales closing dates are the same as other spring crops sales closing dates applicable for your county (Jan. 31, Feb. 28, or Mar. 15). For fiscal year filers with a fiscal year beginning September 1 or later, the sales closing date is November 20. Check the actuarial documents to see what dates apply in your county.
The Risk Management Agency announced several changes in the Whole Farm Revenue Protection (WFRP) policy for 2021.
The Agricultural Improvement Act of 2018 (Farm Bill) enacted on December 20, 2018, includes language in Section 11122 to research ways to reduce paperwork and recordkeeping requirements for direct marketed commodities under the Whole-Farm Revenue Protection (WFRP) plan of insurance. As a result, RMA presented several changes to the Federal Crop Insurance Corporation Board of Directors (FCIC Board). In addition, RMA worked with stakeholders to identify other improvements to WFRP not related to the Farm Bill. On August 20, 2020, the FCIC Board approved the following changes to the 2021 WFRP plan of insurance:
- Allow direct market producers to report two or more direct marketed commodities using a new combined direct marketing commodity code.
- Allow producers to report a combined expected revenue for all commodities within the combined commodity code.
- Provide a diversification factor equivalent of two commodities under the combined direct marketing commodity code.
- Determine expected revenue based on total revenue from the combined commodities and total acres planted to the combined commodities.
- Other changes/improvements:
- Allow current policy year’s premium to only be offset with the current policy year’s indemnity payment.
- Revise the expected yield three-year record requirement to a four-year record requirement for commodities without underlying MPCI coverage.
- Exclude price decline as a carryover insured cause of loss.
- Clarify what tax forms may be requested by an approved insurance provider.
- Clarify the expanded operation factor calculation.
WFRP subsidies through diversification
The subsidy for WFRP makes it a very affordable policy. The amount of subsidy is based on the commodity count calculation indicating the amount of farm level diversification of revenue had by a farming operation.
Basic Subsidy-Qualifying Commodity Count: 1
Whole-Farm Subsidy-Qualifying Commodity Count: 2
Whole-Farm Subsidy-Qualifying Commodity Count: 3 or more
What information is needed?
- Five years of historic farm tax records, and expected revenue and expense worksheets for each year, except:
- Veteran and Beginning Farmer or Rancher qualified insureds may qualify for fewer years;
- If unable to physically farm for one of the required five historic years, but was farming the past year, they will need the four years of tax records that they have, and completed taxes for the last year (the year previous to the insurance year); or
- Tax-exempt entities. Tax-exempt entities will need acceptable third-party records that can be used to complete Substitute Schedule F tax forms for the five-year history.
- An Expected Value and Yield Documentation Certification Worksheet.
- A Farm Operation report for the year to show what commodities are planned to be produced, how much of each will be produced, and expected revenue. Some of the historic records may be needed to assist with determining expected prices. If they raise organic commodities, we will need their organic certificate and may need to consult their organic plan.
- Farm marketing records are acceptable records for direct market commodities.
- MPCI Average Yields and summaries of coverage for any individual insurance policies that have been purchased.
- Verifiable records of acreage and production for the most recent four years (if available) used to determine the expected yield for any commodities without underlying MPCI.
- Beginning Inventory and Accounts Receivable, Payable, and Prepaid Expense Reports.
- Market Animal and Nursery Inventory/Accounting Worksheet (if applicable).
- A Pre-Acceptance Worksheet or Forage Underwriting Report for perennial commodities.
NAU Country has made dedicated efforts in all facets of our team to become the Whole Farm Revenue Protection experts, providing you with the most knowledgeable staff in the industry. We have implemented a structure to ensure there are specialized staff members in the fields of Underwriting, Marketing, and Claims so the American farmer can rest easy knowing they are in the best hands.
- Whole Farm Revenue Protection Training Video
- Whole Farm Revenue Protection Overview with 2021 Changes Video
- Whole Farm Revenue Protection PowerPoint Presentation
- Whole Farm Revenue Protection - Complete Program Overview Video
- 2020 Fact Sheet
- Fact Sheet – WFRP Guidance for Lenders
- 2020 WFRP FAQs
- 2021 WFRP Handbook (October 2021)
- Whole-Farm Revenue Protection Pilot Policy 21-0076
- Whole-Farm Revenue Protection Pilot Policy 20-0076
- Hemp Crop Insurance Coverage Available for 2020
- Product Management Bulletin: PM-20-059
- RMA/USDA Whole-Farm Revenue Protection (WFRP) Website