As part of the latest farm bill, the U.S. Department of Agriculture’s (USDA) Risk Management Agency has expanded the Whole Farm Revenue Protection (WFRP) product for 2016. The Colorado Fruit & Vegetable Growers Association checked in with member and risk management expert Aaron Tattersall, Silveus Insurance Group, to answer some basic questions on this new, federally-subsidized insurance product.
What is Whole Farm Revenue Protection?
Aaron: WFRP is a national program that protects historical, adjusted gross-revenue averages of all agricultural products produced by farmers and ranchers. If the producer suffers a revenue loss for any reason during the year, the program will provide a guaranteed revenue floor. This a good safety net for the producer and his banker, as it enables both to have a revenue value the operation will never fall below.
Can you explain the timing of the program and why it is being offered now?
Aaron: This program replaces an old product called AGR (Adjusted Gross Revenue) that had too many disqualifying factors. This program replaced AGR in the 2014 farm bill and made the program more beneficial to famers and producers nationwide. The current WFRP program is in its second season. The changes to this program (WFRP) is a result of USDA’s ongoing commitment to small and mid-sized producers.
What are the advantages of WFRP?
Aaron: For starters, coverage is expanded to crops previously considered un-insurable, such as fruits and vegetables. Second, higher dollar crops, such as those directly marketed or organic crops, are covered under WFRP.
What else is important to know about WFRP?
Aaron: The more crops covered under the policy, the higher the subsidy available to growers. The subsidy begins compounding with three or more crops covered. It is also important to note that this program includes crops and livestock together, as an entire farm operation.
Who should consider WFRP?
Aaron: All producers whose operation includes multiple fruits, vegetables, or livestock should investigate this policy.
What type of operations are less likely to benefit from WFRP?
Aaron: There are revenue limits that begin to reduce coverage levels. If an operation is too large, this program might not be a good fit. Typically, coverage begins to reduce at the $17 million annual revenue level.
What is the deadline for 2016 coverage?
Aaron: The deadline to sign up for 2016 coverage is March 15, 2016.
For more information: Check out https://youtu.be/r_51_dcO7SU or contact Aaron Tattersall at 303-854-7016 or firstname.lastname@example.org or see http://www.rma.usda.gov/policies/wfrp.html for resources and information from the USDA’s Risk Management Agency.