Beginning Farmer and Rancher (BFR) and Veteran Farmer and Rancher (VFR)

OBBBA changed the definition of BFR to allow an individual who has not actively operated and managed a farm or ranch in any state, with an insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than 10 crop  years (previously 5 crop years) to qualify.

Yes. A BFR can now receive BFR benefits for up to 10 crop years. In addition, the BFR additional premium subsidy is higher for the first four crop years of BFR benefits.

The changes are effective for 2026 crop year policies with a sales closing date on or after July 1, 2025, and subsequent crop years.

No. The OBBBA did not make changes to VFR.

No. Your benefits will automatically be extended without a new or amended BFR Application, provided you continue to meet the BFR eligibility requirements. Your existing BFR Application and subsequent years of policy information will be used to determine any remaining benefits.

No. There is no need for a new BFR Application if the only thing that changed to make you eligible is the OBBBA change in the definition of BFR.

Yes. However, you must complete a BFR Application with your crop insurance agent or approved insurance provider (AIP) no later than November 30, 2025. If you meet the BFR eligibility requirements, you will receive BFR benefits for all policies with a sales closing date on or after July 1, 2025.

Yes, if you continue to meet the BFR eligibility requirements.

No. BFR benefits cannot be retroactively applied to crop year 2025. The change in BFR benefits only applies to crops and livestock endorsements for the 2026 crop year with a sales closing date of July 1, 2025, or later and subsequent years.

Yes, if you qualify for BFR status you can receive three remaining years of BFR benefits. Since crop year 2026 is the third year of BFR benefits, you will receive an additional 13 percent premium subsidy. In crop year 2027, the fourth year of BFR benefits, you will receive an additional 11 percent premium subsidy. For crop year 2028, the fifth year of BFR benefits and final year of BFR eligibility due to farming 10 years, you will receive an additional 10 percent premium subsidy.

If you have a previously completed BFR Application you can provide a copy to the new AIP. If your application is not available, then you must complete a new BFR Application.

Yes, an amended application is needed if you want to exclude additional crop years of insurable interest.

No, a new or amended application is not needed for adding land to your farming operation.

A new or amended BFR Application must be submitted on or before November 30, 2025, for BFR benefits to apply for 2026 crop year policies with a sales closing date on or after July 1, 2025, and on or before November 30, 2025, including any livestock endorsements purchased on or after July 1, 2025, and on or before November 30, 2025. For any 2026 crop year policies with a sales closing date after November 30, 2025, the BFR Application must be submitted on or before the sales closing date for BFR benefits to apply for the 2026 crop year.

No, you cannot receive both benefits at the same time. If you qualify as a VFR and also qualify as BFR, BFR benefits will apply since the BFR benefits are equivalent or higher than VFR benefits. The BFR premium subsidy is higher in the initial years and benefits last longer than VFR. However, you may receive VFR benefits after receiving and exhausting BFR benefits if you subsequently meet the VFR qualifications.

The BFR and VFR benefits are the same with the exception of the additional premium subsidy and the number of years of benefits:

• Exemption from paying the administrative fee for catastrophic (CAT) and additional coverage (buy up) level policies;
• Use of the previous producer’s production history, with permission, for the specific acreage transferred to you if you were previously involved in the decision making or physical activities on any farm that produced the crop or livestock; and
• An increase in the substituted yield for Yield Adjustment, which allows a replacement of a low yield due to an insured cause of loss, from 60 to 80 percent of the applicable transitional yield (T-Yield) for the crop in the county.
• VFRs will receive an additional 10 percentage points of premium subsidy for additional coverage policies (buy-up) that have premium subsidy;
• BFRs will receive an additional 10 percentage points of premium subsidy for additional coverage policies (buy-up) that have premium subsidy plus additional percentage points the first four crop years as follows:
  • first and second year total of 15 percentage points
  • third year total of 13 percentage points
  • fourth year total of 11 percentage points
  • fifth through tenth year 10 percentage points.
• VFRs may receive benefits up to five crop years.
• BFRs may receive benefits up to 10 crop years.

A BFR is an individual who has not actively operated and managed a farm or ranch with an insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than 10 crop years. The 10 crop years:

• Includes an insurable interest as an individual or as a substantial beneficial interest holder (10 percent or more) in another person who has an insurable interest in any crop or livestock; and
• Excludes crop years when the BFR was under the age of 18, enrolled in post-secondary studies (not to exceed 10 crop years), or on active duty in the U.S. military.

A VFR is an individual who has served on active duty in the United States Armed Forces, including Air Force, Army, Coast Guard, Marine Corps, Navy, or Space Force, and their reserve components, was discharged or released under conditions other than dishonorable, and qualifies under any of the following:

• Has not operated a farm or ranch;
• Has operated a farm or ranch for not more than five years; or
• Is a veteran who has first obtained status as a veteran during the most recent five-year period, even if that veteran has previously operated a farm or ranch for more than five years. 

A person, other than an individual, may be eligible for VFR benefits if all substantial beneficial interest holders qualify individually as a VFR. A spouse’s veteran status does not impact whether a person (comprised only of the veteran and their spouse) is considered a VFR.

Business entities may receive BFR benefits only if all of the substantial beneficial interest holders of the business entity qualify as a BFR. 

For example, a son moves home to take over the family farm and incorporates with his spouse and neither have previous farming experience. Their corporation would qualify for BFR benefits. 

However, if a son moves home and forms a corporation with his father, who has had an insurable interest in crops or livestock for more than 10 crop years, the corporation cannot receive BFR benefits. Although the son qualifies as a BFR, the father does not, so their corporation would not qualify for BFR benefits.

Business entities may receive VFR benefits only if all of the substantial beneficial interest holders of the business entity qualify as VFR. 

For example, a veteran moves home to take over the family farm and incorporates with his/her spouse. Their corporation would qualify for VFR benefits even though the spouse is not a veteran. A spouse’s veteran status does not impact whether a person (comprised only of the veteran and their spouse) is considered a veteran farmer or rancher.

However, if a veteran moves home and forms a corporation with a parent, who has had an insurable interest in crops or livestock for more than five crop years, the corporation cannot receive VFR benefits. Although the veteran qualifies as a VFR, the parent does not, therefore their corporation would not qualify for VFR benefits.

Irrevocable Trust do not have substantial beneficial interest holders (beneficiaries of Irrevocable Trusts are not considered substantial beneficial interest holders), therefore do not qualify as BFR or VFR.

To determine what is a crop year in which you have an insurable interest in crop or livestock in a crop year:

1. The crop year is when the individual had a financial interest in a crop or livestock and is based on the actual crop or livestock produced, for:

   a. For insurable crops and livestock, the crop year is from the sales closing date to the end of insurance date; 
   b. For uninsurable crops the crop year is from the planting date to the harvest date; and 
   c. For uninsurable livestock the crop year is from July 1 to June 30.

To determine whether the crop year can be excluded the exclusion must:

1. Meet procedural criteria, such as military, education, and 18 years old or younger exclusions.
2. Meet the criteria in number 1 above and the exclusionary time overlaps the established crop year, the crop year may be excluded.

In determining BFR status, an insurable interest does not mean that the crop or livestock must be insurable, just that the individual must have an interest that is at financial risk in the crop or livestock. In the example provided, the individual has a financial risk that is considered an insurable interest for the purpose of determining BFR benefits.

A crop year, for BFR benefits purposes, for perennials is when the tree, vine, or bush produces a crop that is of such a value to be commonly harvested and marketed for the area. For insurable crops, it is when the crop has reached production minimums or insurable age and for uninsurable crops, as determined by local agricultural experts.

No, an interest in Conservation Reserve Program acreage is not considered an insurable interest in a crop or livestock because there is no crop or livestock for the acreage.

No, a crop or livestock crop year is counted if the person had a financial risk during the crop year.

Yes. Any allowable exclusions must overlap the crop year when you had an insurable interest in a crop or livestock.

The crop year begins with the sales closing date and ends with the end of insurance date. You attended a semester for four months, which overlapped the crop year, meeting the procedural criteria for exclusion. Since you met one of the exclusion criteria during the crop year, the crop year may be excluded.

In this example, the corn crop year begins on March 15 (the sales closing date) and ends December 15 (the end of insurance). The four-month college exemption is met and the college time overlapped both the 2023 and 2024 crop years for corn. Therefore, both crop years may be excluded.

The livestock crop year is July 1, 2024, to June 30, 2025, and July 1, 2025, to June 30, 2026. An interest between December 2024 and January 2025 is one crop year. An interest between March 2025 and August 2025 is two crop years.

Yes. You met the four-month college exclusion and the crop years are excluded. See the table below.

Contact your crop insurance agent. You will need to complete a BFR/VFR Application and:

• For BFR, provide acceptable documentation for any crop years you wish to exclude from consideration of BFR status for when you were under the age of 18, enrolled in post-secondary studies (not to exceed 10 crop years), or on active duty in the U.S. military.
• For VFR, provide acceptable documentation for military records to substantiate active military service and discharge. 

You will be notified if you qualify.

No, this is only applicable to BFR qualifications.

Yes, you can keep your BFR or VFR benefits as long as you remain eligible. Changing an AIP does not impact your BFR or VFR eligibility.

When you change AIPs you do not need to complete a new BFR/VFR Application but you must provide your new AIP a copy of your previously completed BFR/VFR Application and notice of approval.

Consent from the other person whose production history is being used is required. The BFR or VFR is also required to have supporting records, upon request.

The years of history transferred do not count as crop years of insurable interest unless the BFR or VFR had an insurable interest in the crop, such as a substantial beneficial interest. However, if that was the case, it would likely fall under Crop Insurance Handbook, Paragraph 1509 or 1510, and the BFR or VFR would not transfer another person’s history as provided in Paragraph 1508.

Unlike the Transfer of actual production history data in the Crop Insurance Handbook, Paragraph 1507, the number of years of production history that may be transferred is not limited by the number of years the BFR or VFR was previously involved in any farming or ranching operation. However, a BFR or VFR can only use another person’s production history for a crop that the BFR or VFR was previously involved in. The involvement in the crop can be from any farming or ranching operation, not just the previous producer’s operation. If the BFR or VFR was involved with a crop, they can use the previous producer’s crop production records for new acreage, provided all of the requirements in Paragraph 1508 are met. Only the production history of the specific acreage being transferred may be transferred to the BFR or VFR.

Since the BFR was involved in the decision making on his father’s operation that grew corn, the BFR may use the neighbor’s corn production history on the 100 acres.

No, the VFR had no previous involvement in the decision making or physical activities in growing sunflowers, therefore they will not be able to use the neighbor’s production history for sunflowers.

Since the previous producer did not provide consent to the BFR, there is no other history applicable to transfer to the BFR. The BFR would establish their corn APH database on the 100 acres with T-Yields.

When you no longer qualify for BFR or VFR benefits, you will receive the same yield substitution as all other producers who are not BFRs or VFRs. You will also no longer be exempted from paying the administrative fees for your policies and you will no longer receive additional percentage points of premium subsidy.

Once you have 10 crop years of insurable interest in a crop or livestock, including having a substantial beneficial interest (10 percent or more) in another person who has an insurable interest in a crop or livestock, you are no longer entitled to BFR status. Once you elect and qualify for BFR status, it is continuous until the earlier of:

• You have had an insurable interest in a crop or livestock for more than 10 crop years;
• 10 crop years of BFR benefits are exhausted; or
• You cancel your BFR Application.

VFR status is dependent on how you qualified for VFR status. Once you elect and qualify for VFR status, it is continuous unless you cancel your application or either of the following conditions exist:

• If you qualified for VFR status based on having operated a farm or ranch for not more than five years, then once you have operated a farm or ranch for five years, you are no longer entitled to VFR status.
• If you qualified for VFR status based on first obtaining status as a veteran during the most recent five-year period, then once five years has elapsed from first obtaining status as a veteran, you are no longer entitled to VFR status.

Yes, if you qualify for VFR status based on first obtaining status as a veteran during the most recent five-year period after receiving BFR benefits, even if you previously operated a farm or ranch for more than five years.

No, you can receive BFR benefits while attending college or university. However, these years will count towards the maximum 10 crop years that a producer can qualify for BFR benefits.

A business entity may receive BFR benefits if all of the substantial beneficial interest holders of the business entity qualify as a BFR. If you qualify as a BFR and you form a corporation, your corporation maybe eligible for BFR benefits. For example, a husband and wife form a corporation and neither spouse had previous farming experience or an insurable interest in a crop or livestock. The corporation would be eligible for BFR benefits. However, if a son moves home and forms a corporation with his father, who has had an insurable interest in crops or livestock for more than 10 crop years, the corporation cannot receive BFR benefits. Although the son may qualify as a BFR, the father does not and as such the corporation cannot receive BFR benefits.

Years of benefits are based on the VFR status you qualify for:

VFR status is based on not operating a farm for not more than five years.

• Since you have never farmed, you would qualify for five years of VFR benefits.

VFR status is based on first obtaining veteran status during the most recent five-year period.

• Since you have first obtained veteran status within the most recent five-year period, you would qualify for VFR benefits through January 9, 2028.

Note: When completing the VFR Application, you must choose one of the two VFR qualifiers.

You can qualify based on either:

VFR status is based on not operating a farm for not more than five years.

• Since you have operated a farm for more than five years, you would not qualify under this condition.

VFR status is based on first obtaining veteran status during the most recent five-year period.

• Since you have first obtained veteran status within the most recent five-year period, you would qualify for VFR benefits through January 14, 2028.

You can receive benefits based on either:

VFR status is based on not operating a farm for not more than five years.

• Since you have never farmed, you would qualify for five years of VFR Benefits.

VFR status is based on first obtaining veteran status during the most recent five-year period.

• Since you have first obtained veteran status outside of the most recent five-year period, you would not qualify under this condition.

You can receive benefits based on either:

VFR status is based on not operating a farm for not more than five years.

• Since you have operated a farm or ranch for two years, you would qualify for three years of VFR Benefits under this condition.

VFR status is based on first obtaining veteran status during the most recent five-year period.

• Since you have first obtained veteran status within the most recent five-year period, you would qualify for VFR benefits through January 14, 2030.

Note: When completing the VFR Application, you must choose one of the two VFR qualifiers.

You can receive benefits based on either:

VFR is status based on not operating a farm for not more than five years:

• Since you have operated a farm for more than five years you would not qualify under this condition.

VFR status is based on first obtaining veteran status during the most recent five-year period.

• Since you have first obtained veteran status within the most recent five-year period, you would qualify for VFR benefits through July 18, 2030. 

Additionally, this would be the only period of VFR benefits based on date of discharge. Once you are discharged from the Army National Guard you will not receive another five years of benefits as they are based on when you first obtained veteran status.

You can receive benefits based on VFR status of first obtaining veteran status during the most recent five-year period. Since you have first obtained veteran status within the most recent five-year period, you would qualify for VFR benefits through June 30, 2030, even if you had previously operated a farm or ranch for more than five-year period.