A Beginner’s Guide to Whole-Farm Revenue Protection (WFRP)

Out of all the crop insurance products available in the Federal crop insurance program, Whole-Farm Revenue Protection (WFRP) can deliver the most effective risk management at the lowest cost. It’s an attractive option because of the reduced premium rate and flexibility to safeguard against decreases in yield, price, and quality (i.e., smoke taint on wine grapes). 

What Is Whole-Farm Revenue Protection?

WFRP is an insurance plan that provides a risk management safety net for an entire farming operation under one policy. Unlike other traditional crop insurance policies, WFRP doesn’t consider individual commodity losses but rather the overall farm revenue. It can be tailored to insure up to $8.5 million in revenue, covering specialty commodities, organic practices, and even livestock. The plan works best when strategically coupled with other individual crop policies. 

How Does Whole-Farm Revenue Protection Work?

Under a Whole-Farm Revenue Protection (WFRP) policy, your insured revenue is the lesser of either:

  • Your current year’s expected revenue, determined by your farm plan at the coverage level you selected, OR;
  • Your historic revenue, adjusted for growth at the coverage level chosen

The number of commodities produced on the farm impacts coverages and premium subsidies—the more commodities produced on the farm, the lower the premium rate. 

A loss occurs when the revenue guaranteed by WFRP exceeds the revenue-to-count for the year. Claims are settled once taxes are filed for the insurance year. It’s important to note that potential indemnities will be reduced if expenses do not exceed 70% of the approved/historical expenses. 

Coverage levels up to 85 percent of revenue

The coverage levels offered in a WFRP policy are higher, starting at 50 percent and progressing up 85 percent of historical revenue. For sake of comparison, this is a significant increase over the 80 percent coverage level provided by AGR policies and the 72 percent coverage offered by AGR-Lite policies.

Premium subsidy of up to 80 percent

If at least two crops are grown, WFRP allows for a premium subsidy of up to 80 percent.  

Coverage Level50%55%60%65%70%75%80%85%
Basic Subsidy – Qualifying Commodity Count: 167%64%64%59%59%55%N/AN/A
Whole-Farm Subsidy – Qualifying Commodity Count: 280%80%80%80%80%80%N/AN/A
Whole-Farm Subsidy  – Qualifying Commodity Count: 3 or more80%80%80%80%80%80%71%56%
Source: RMA Powerpoint “Introduction to WFRP”

What information must a farmer provide for Whole-Farm Revenue Protection (WFRP)?

To get a quote for a WFRP policy, you must provide the following information:

  • Five years of historic Schedule F farm tax forms
  • Your farm plan or Farm Operation Report (FOR) plan for the insurance year, including the commodities (including specialty or organic commodities) you plan to produce and production quantities.

Additional 10 percent premium discount for farmers and ranchers

One of the improvements made to WFRP in the 2018 Farm Bill was redefining the meaning of new farmers and ranchers for the purposes of determining eligibility for the additional 10% premium subsidy on their WFRP subsidy. Previously, beginning farmers and ranchers (BFR) were defined as having farmed for five years or less. The updated definition states that BFRs can qualify for the extra 10% premium subsidy for up to 10 years.

Protect Your Farm With WFRP Today!

As a proud Approved Insurance Provider (AIP), crop insurance agents are ready to help you determine your eligibility for Whole-Farm Revenue Protection (WFRP). Contact us today to speak with a crop insurance agent and begin insuring your farm, so you’re prepared for when and if the worst happens.

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