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  • Q How and when is a loss paid for WFRP?

    At the end of the insurance period and after you have filed your farm income taxes for the policy year, a loss adjuster will complete an Allowable Revenue and Allowable Expense Worksheet for the policy year using your farm tax forms. First, the allowable expenses will be compared to your approved expenses to determine if you incurred at least 70 percent of your approved expenses. If you did not, then your insured revenue will be adjusted downwards by 1 percent for each percent you are below 70 percent of your approved expenses.

    The allowable revenue will be adjusted for inventory adjustments, unharvested or unsold production, and production you lost for uncovered causes of loss to determine the revenue-to-count for the year. A loss is paid when the total revenue-to-count for the policy year falls below the insured amount of revenue, multiplied by the expense reduction factor, if applicable.

  • Q Can an insured participate in the Non-Insured Assistance Program (NAP) as well as WFRP?

    Yes. Producers may participate in both programs; however, the law says that producers may not receive benefits from both programs. Therefore, producers who do participate in both programs will be required to choose to receive either the NAP payment(s) or the WFRP indemnity. Regardless of the choice of benefits, the producer will be required to pay any premium and administrative costs due for WFRP as well as any costs incurred to participate in NAP.

    For example, if a producer received one or more NAP payments during the year that totaled $15,000, and is later due a $25,000 indemnity under WFRP, the producer would need to pay back the NAP payments to the Farm Service Agency and receive a NAP Repayment Certification to complete the claim requirements under WFRP.

    If the NAP payments are larger than the WFRP indemnity, the policyholder can choose to withdraw their WFRP claim for an indemnity and accept the NAP payment(s). If a NAP payment is made after a WFRP indemnity has been paid and the producer wishes to accept the NAP payment, the producer must return the WFRP indemnity.

  • Q Are losses due to limited irrigation covered by WFRP?

    The WFRP policy provides protection for the expected revenue that will be produced on the farm during the insured tax year. The insured amount of revenue is based on the expected farm plan for the policy year and the historical revenue produced in the previous five (5) years as shown on the Schedule F farm tax records. If an input, such as irrigation water, used to produce a commodity is not available, then the expected revenue of the commodities that will be impacted by the lack of the input, such as reduced available water, must be decreased to reflect what can be produced that year. For example, under WFRP insurance, farms experiencing a reduction or lack of irrigation water, that is known or apparent prior to when the expected farm plan is submitted, must reduce the amount of acreage to be grown under the irrigated practice or, if irrigation water is no longer available, it will be necessary to record the commodities as a non-irrigated practice with appropriately reduced yields on the Intended Farm Operation Report.