6 things you need to know about WFRP plans


A Whole Farm Revenue Protection (WFRP) plan provides a risk management safety net for all commodities on the farm under one policy.

The WFRP policy was 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, insuring up to $8.5 million of revenue.

WFRP is available in all counties in all 50 states and provides protection against the loss of insured revenue due to unavoidable natural causes during the insurance period, and provides carryover loss coverage if insured the following year.

12.22 farming 101

1What’s covered?
Revenue from all commodities produced on the farm including:

  • Commodities — including animals and animal products — produced during the insurance period, whether they are sold or not.
  • Commodities purchased for resale (up to 50 percent of total) during insurance period.
  • Replant costs with approval: for annual crops — except those covered by another policy — equal to the cost of replanting, up to a maximum of 20 percent of the expected revenue; and when 20 percent or 20 acres of the crop needs to be replanted.

***It excludes timber, forest, forest products, and animals for sport, show or pets.

All farm revenue is insured together under one policy. Individual commodity losses are not considered, it is the overall farm revenue that determines losses.

Premium subsidy is available and depends on farm diversification:

  • Farms with two or more commodities receive whole-farm premium subsidy.
  • arms with one commodity receive basic subsidy.

In general, diversification is measured by the number of commodities on the farm. Farm diversification reduces revenue risk on the farm.

  • Farms with three or more commodities can qualify for 80-85 percent coverage levels.
  • Each commodity must provide a calculated percentage of expected farm revenue.
  • Commodities with a small revenue may be grouped to meet qualifications.

WFRP insured revenue is the lower of either the current year’s revenue (determined on the farm plan) at the selected coverage level, or the historic revenue adjusted for growth at the selected coverage level.

  • WFRP covers revenue “produced” in the insurance year.
  • A commodity not harvested or sold will count as revenue.
  • A commodity grown last year and sold this year will not be covered.
  • For commodities that grow each year, like cattle, only the growth for insurance year counts: i.e. calves worth $800 at beginning of year and sold at $2,000 will be insured at $1,200.
  • Inventory and accounts receivable are used to get “produced” amounts.

5Important dates
The sales closing date, cancellation date, and termination date are the dates by which you must buy coverage, change coverage, or terminate coverage. These dates are specific to your county. The date is either Jan. 31, Feb. 28, or March 15.
The Revised Farm Operations Report (like an acreage report) is due:

  • July 15 for calendar and early fiscal filers (January-July fiscal year)
  • By end of first 30 days of fiscal year for August, September, October fiscal years
  • By Oct. 31 for November and December fiscal years

6What you need to apply
Five years of farm tax forms. For 2017, tax forms from 2011-2015 are required. Exemptions are made for beginning farmers, qualifying persons not required to file a U.S. tax return, and producers who were physically unable to farm for one year.

Type of tax filer: calendar year or fiscal year tax filer (include what the fiscal year is).
Information about what will be produced on the farm during the insured year.

Other information: supporting records, organic certification, inventory or accounts receivable information.

Sources: For complete information on the USDA’s Whole Farm Revenue Protection program.

(Farm and Dairy is featuring a series of “101” columns throughout the year to help young and beginning farmers master farm living. From finances to management to machinery repair and animal care, farmers do it all.)

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