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  • Q Was there any expansion to the WFRP program for 2016?

    A

    Yes! WFRP has been expanded to all counties nationwide for 2016. This means the program is newly available in Arkansas, Louisiana, Mississippi, Oklahoma, Texas, and in the remainder of counties in Alaska and California.

  • Q What are the WFRP records requirements for insureds who direct market their produce (or animal products)?, such as farmer’s markets or roadside stands?

    A

    The WFRP policy requirements were changed to better reflect the type of records direct marketers keep as sales records. Sales/marketing records can be farm records that are kept during the sales year.

  • Q What type of records should a producer who direct markets keep for WFRP?

    A

    RMA has released some recordkeeping aids on its website for direct marketers to use as guides for record-keeping. These aids are available to simply print and use as paper copy or to use with your computer. These aids are not required but offer a method for insureds to record farm marketing information during the year and will also be useful to producers in identifying profitability of individual commodities. Use of one of these aids will help insureds to keep contemporaneous farm records adequate for WFRP insurance needs. The aids can be found at: www.rma.usda.gov/Policy-and-Procedure/Insurance-Plans/Whole-Farm-Revenue-Protection.

  • Q Have there been changes to the WFRP animal and animal product limit?

    A

    Yes! Producers may now qualify for WFRP if their farm has up to $1 million of expected revenue from animals and animal products. The 35 percent limit for animals and animal products has been removed.

  • Q Yes! Producers may now qualify for WFRP if their farm has up to $1 million of expected revenue from nursery/greenhouse products. The 35 percent limit for nursery/greenhouse has been removed.

    A

    Yes! Producers may now qualify for WFRP if their farm has up to $1 million of expected revenue from nursery/greenhouse products. The 35 percent limit for nursery/greenhouse has been removed.

  • Q Is there more capacity in the WFRP policy for expanding operations?

    A

    Yes! Subject to AIP approval, producers may now qualify for to increase their insurance guarantee by up to 35 percent of their average revenue history if their farm has had physical growth of some kind. Physical growth can be increased acreage, the addition of something like a greenhouse, changes to varieties or planting patterns, or any other production capacity change. Producers interested in this increased coverage must provide information to the crop insurance agent showing that physical expansion has occurred and what the resulting increased revenue is expected to be. The previous policy provisions allowed an increase of 10 percent.

  • Q Have any changes been made to make more Beginning Farmers and Ranchers (BFR’s) eligible for coverage under WFRP?

    A

    Yes. Subject to USDA qualification under the BFR Procedures, BFR’s may obtain coverage under WFRP with a minimum of 3 years of tax history as long as they also farmed the year before the insured year (lag year). Similar to established producers, a 5-year average revenue will be constructed using the BFR’s three years of history, the lag year and the lowest revenue amount from those four years as the fifth year of history. BFR’s qualify for an additional 10 percent premium subsidy

  • Q Are Tribal Entities eligible for coverage under WFRP?

    A

    Yes, in some cases. Entities that are tax exempt but are eligible for Federal benefits, such as Tribal entities, can qualify for WFRP as long as third party verifiable records are available and can be converted into acceptable Substitute Schedule F forms needed for WFRP. AIP approval that suitable records are available is necessary for eligibility.

  • Q Can a producer meet WFRP revenue history requirements if they were prevented from farming for a year due to circumstances beyond their control?

    A

    Yes. If a producer was not required to file farm income taxes in a single year within the most recent five years because the farm income was zero, due to the producer’s inability to farm, then the producer will be allowed to use the year previous to the insured year (lag year’s) farming information to create a 5th year of history. The individual must have been farming during the lag year to utilize this exception This change may be useful for some producers who have an illness or who may be deployed for a year

  • Q What types of farms is WFRP insurance made for?

    A

    WFRP is designed to meet the needs of highly diverse farms that are growing a wide range of commodities, and for farms selling commodities to wholesale markets. The WFRP policy was specifically developed for farms that tend to sell to direct, local or regional, and farm-identity preserved markets and grow specialty crops and animals and animal products.

  • Q What farm revenue is covered?

    A

    The amount of farm revenue you can protect with WFRP insurance is the lower of the revenue expected on your current year’s farm plan or your five-year historic income adjusted for growth. This represents an insurable revenue amount that can reasonably be expected to be produced on your farm during the insurance year. All commodities produced by the farm are covered under WFRP except timber, forest, and forest products, and animals for sport, show or pets.

    It is important to understand that WFRP is covering revenue produced during the insurance year. For example: If a calf weighs 800 pounds at the beginning of the year and will be sold at 1200 pounds during the insurance year, the value of production will be the additional 400 pounds gained. Inventory adjustments are used to remove production produced during previous years and to add revenue for production that hasn’t been harvested or sold yet.

  • Q What adjustments are made for farm growth in determining my insured revenue amount?

    A

    There are two ways the WFRP policy looks at growing operations. The first is an indexing procedure that looks to see if the allowable income from either of the last two years is higher than the five (5) year average allowable income and then, if that condition is met, increases the historic income based on how much the farm has grown over the five historic years. The second way the WFRP policy looks at farm growth depends on records provided by the insured to show that physical changes have occurred on the farm that support an expanded operation increase of up to 35 percent over the 5-year average allowable income. Only those operations that meet one of these two conditions will be allowed to have adjustments in the guarantee as an expanding operation. This expansion is subject to AIP approval

  • Q How are commodities counted on my farm?

    A

    The WFRP commodity count is a calculation rather than simply a count of commodities produced. It is important to understand that the commodity count used by WFRP is not just what you are growing or producing on the farm, but is a measure of farm diversification that shows the farm has reduced its risk by producing significant amounts of multiple commodities. For example: A farm may have 95 percent of its revenue coming from apples and 5 percent from pears. For WFRP purposes, this farm would be considered to have only 1 commodity. However, if the farm had 80 percent of its revenue coming from apples and 20 percent from pears, the farm would be considered to have 2 commodities. The commodity count calculation must be used to determine the number of commodities that count under the policy.

    The calculation determines the minimum proportion of revenue a commodity must contribute to the farm to be considered a countable commodity for WFRP. A farm’s revenue would be evenly distributed if an equal percentage of revenue came from each commodity produced, for example, 25 percent from Corn, 25 percent from Soybeans, 25 percent from Spinach and 25 percent from Carrots. The minimum proportion to be considered a countable commodity is 1/3 of that evenly distributed amount. Therefore, in this example, for corn, soybeans, spinach, or carrots, each commodity would have to make up at least 8.3 percent of the total revenue of the farm to count as a commodity under WFRP. Commodities with revenue below the minimum will be grouped together in order to recognize the diversification of the multiple commodities (this will make the commodity count higher). The formula for the commodity count can be found in the WFRP policy.

  • Q Does diversification on my farm matter?

    A

    Yes! Farm level diversification is important in WFRP. In general, diversification is measured by the number of commodities on the farm. Farm diversification reduces revenue risk on the farm. The following are key items in WFRP that are affected by diversification on the farm (Note: The number of commodities is determined by the amount of farm diversification measured by a commodity count calculation in the policy, as described in the answer to the previous question.):

    • Qualification for the 80 and 85 percent coverage levels require a minimum of three (3) commodities.
    • A minimum of two (2) commodities is required for potato farms to qualify for WFRP insurance.
    • Farms that have a commodity that is insurable under Revenue Protection, Revenue Protection with the Harvest Price Exclusion, or the Actual Revenue History plan of insurance must have a minimum of 2 commodities on the farm in order to qualify for WFRP insurance.
    • Farms with two (2) or more commodities will receive a premium rate discount based on the amount of diversification. This discount is a reflection of the lower risk of revenue loss because of the farms diversification.
    • Farms with two (2) or more commodities will also receive a whole-farm subsidy resulting in less premium cost to the producer.
  • Q Are there limits to what farms can be insured under WFRP?

    A

    Yes, if any of the following limits are exceeded, the farm will not qualify for WFRP:

    • The farm’s total coverage must be $8.5 million or less at the sales closing date (this is approved revenue multiplied by the selected coverage level);
    • The expected revenue from animals and animal products on the farm is greater than $1 million;
    • The expected revenue from nursery and greenhouse products on the farm is greater than $1 million;
    • The farm must have a commodity count of two (2) or more commodities if the farm has potatoes; and
    • Farms that have a commodity that is insurable under Revenue Protection, Revenue Protection with the Harvest Price Exclusion, or the Actual Revenue History plan of insurance must have a minimum of 2 commodities on the farm in order to qualify for WFRP insurance.
  • Q What type of subsidy is available for WFRP?

    A

    Whole-farm subsidy is available for WFRP if you qualify through diversification on your farm. The availability of whole-farm subsidy for WRFP for farms meeting the diversification requirements for two commodities means that WFRP insurance provides the same higher whole-farm subsidy levels available on the Revenue Protection products. Your WFRP subsidy amount will be based on the commodity count calculation indicating the amount of farm level diversification of revenue that you have. If you have two (2) or more commodities that significantly contribute to your operation, you will receive a whole-farm subsidy. If not, you will receive the basic subsidy. The following subsidy amounts will apply for WFRP:

    WFRP Subsidy: Percentage of Total Premium Paid by Government

    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%
  • Q How and where do I purchase WFRP insurance?

    A

    WFRP is available for purchase from your local crop insurance agent. You can find a crop insurance agent at Agent Locator.

  • Q What is the last date to purchase (sales closing date) WFRP?

    A

    Sales closing dates are the same as other spring crop sales closing dates applicable for your county and will be January 31, February 28 or March 15 for 2016. Consult a crop insurance agent or check the Actuarial Information Browser on the RMA website to find the sales closing date for your county. The Actuarial Information Browser can be found on RMA’s website.

  • Q What coverage levels are available for WFRP?

    A

    WFRP provides whole-farm revenue protection coverage levels from 50 to 85 percent of insured revenue. These coverage levels are available in 5 percent increments and your farm must have diversification of at least three (3) commodities, in order to qualify for the 80 and 85 percent coverage levels

  • Q What is the insurance period for WFRP?

    A

    The insurance period under WFRP is based on your tax year. If you are a calendar year filer, the insurance period is January 1 through December 31. If you are a fiscal year filer your insurance year will be the same as your fiscal tax year.

  • Q How do I determine the prices to use for the commodities on my farm plan?

    A

    Prices must be reasonable for your local market and will be determined using the expected value guidelines in the policy. These guidelines are generally based on third party values, but for some farms that grow commodities where little or no price information is available there are times when historic averages will be used. Organic prices may be used for certified organic acreage, and organic prices may also be used for small farms that do not have to have an official organic certification, as long as an organic plan in accordance with the National Organic Program is being followed.

  • Q Is replant coverage part of WFRP?

    A

    Replant coverage is part of WFRP for annual crops only and is also only for crops on your farm operation that are not insured under another FCIC reinsured policy. For annual crops insured under WFRP and also insured under another FCIC reinsured policy that provides for a replant payment, a qualifying replant payment will only be paid under the other FCIC policy. Damage to the commodity must be due to an insured cause of loss. The AIP must agree that it is practical to replant and give their consent to replant. The maximum amount of a replant payment will be the lower of: (1) 20 percent of the expected revenue times the coverage level per acre for the commodity; or (2) the actual cost of replanting per acre. You must submit verifiable records showing your actual cost of replanting.

  • Q Is there prevented planting coverage under WFRP?

    A

    While prevented planting coverage under the WFRP is not the same as prevented planting coverage under the Common Crop Insurance Policy Basic provisions, if a commodity shown on the Intended Farm Operation Report cannot be planted due to an insured cause of loss during the insurance year, and there is a revenue shortfall on the entire farm for the insured year, a loss would be paid. At the time the Intended Farm Operation Report is completed, the producer must have a reasonable expectation that each commodity listed can be produced. Losses for WFRP occur at the end of the year when the approved ‘revenue to count’ for the insurance year falls below the insured revenue and must be due to an insured cause of loss.

  • Q Can I purchase individual Federal reinsured crop insurance policies for my commodities in addition to WFRP?

    A

    Yes. You may purchase other Federal reinsured crop insurance coverage for any of your commodities as long as the other policy provides coverage at a ‘buy-up’ coverage level and not at the 'catastrophic' coverage level. When you purchase other Federal reinsured crop insurance policies in conjunction with WFRP, the total liability from those policies covering WFRP covered commodities, up to 50 percent of your WFRP policy liability, will be used to adjust the WFRP liability amount for premium calculation purposes. The liability adjustment will be used only for premium calculation and will result in a reduced amount of WFRP premium. The other Federal reinsured crop insurance will become your primary policy and any indemnity paid on those policies will be considered to be revenue for the insurance year under the WFRP policy to assure duplicate payments for the same crop loss are not made. If you purchase other Federal reinsured crop insurance coverage at the 'catastrophic' (CAT) level of coverage, you will not be eligible for WFRP for that insurance year. You are not required to purchase another Federal reinsured crop insurance policy .

  • Q Are there any exceptions to the rule that when producers have other Federal crop insurance with WFRP, the WFRP policy requires those other Federal crop insurance policies to be at buy-up levels of coverage or the producer is not eligible for WFRP insurance?

    A

    Yes. Because the WFPR policy was released in early November of 2014, an exception was made for the 2015 insurance year regarding the purchase of catastrophic (CAT) level coverage. This exception will continue to apply for the 2016 insurance year only for producers who purchased a two-year CAT level insurance policy for a specific crop with a Sales Closing Date prior to November 1, 2014. These producers will be eligible for WFRP insurance provided they meet all other eligibility requirements as reflected in the Special Provisions of Insurance for the county.