Whole Farm Revenue Protection (WFRP)

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.

Availability

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.

2020 enhancements

  • Increase the livestock and nursery limit for eligibility from $1 million to $2 million with a “soft” cap.
  • Addition of provisions specific to industrial hemp.
  • Noninsured Crop Disaster Assistance Program (NAP) payment will now be treated like other non-Risk Management Agency (RMA) insurance payments.
    • This means, an indemnity paid under NAP will not be counted as revenue-to-count under the WFRP program up to the deductible of the WFRP policy.
  • State and Federal disaster program payments will be excluded from revenue-to-count and allowable revenue determinations.
  • New history smoothing option.
    • A 60% revenue plug based on the simple average or simple indexed average revenue.
    • Producers may drop the lowest year revenue from the history and calculate the average revenue based on the four remaining years.
    • The approved revenue may also be cupped at no less than 90% of the previous year’s approved revenue.
  • New indexing calculations and historic average revenue after indexing will be limited to the highest annual revenue in history.
  • For commodities not insured under an individual yield coverage policy that have been produced on the farm operation during your whole farm history period, the expected yield will be the average yield produced on the farm operation during the three years preceding the insurance period. Producers must provide verifiable records of acreage and production for all years used to determine the expected yield by the sales closing date.
  • New NAU developed approved yield and revenue history form to help track expected yields.

 

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.

Coverage Level

50%

55%

60%

65%

70%

75%

80%

85%

Basic Subsidy-Qualifying Commodity Count: 1

67%

64%

64%

59%

59%

55%

N/A

N/A

Whole-Farm Subsidy-Qualifying Commodity Count: 2

80%

80%

80%

80%

80%

80%

N/A

N/A

Whole-Farm Subsidy-Qualifying Commodity Count: 3 or more

80%

80%

80%

80%

80%

80%

71%

56%

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 all years 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.

Training materials

Resources

Forms