USDA Announces Expansion of Whole Farm Insurance Pilot Program

Risk Management Agency Program Announcement

Contact: Eric Edgington (202) 690-2539
Eric_Edgington@wdc.usda.gov

Raleigh, North Carolina, Dec. 18, 2000 -- Larry N. Atkinson, Director of the Raleigh Regional Office, Risk Management Agency (RMA), USDA, today confirmed the Department's commitment to further reinforce and strengthen the agriculture economy by expanding an innovative pilot program called Adjusted Gross Revenue (AGR). This "whole farm" insurance plan guarantees a percentage of the gross farm revenue derived from the sale of agricultural commodities.

Atkinson stated that RMA has partnered with grower associations, several state agriculture departments, agricultural lenders, cooperative extension specialists, insurance companies, and other USDA agencies to improve and expand the AGR pilot insurance program. In the Middle Atlantic and Northeastern regions, AGR is now available for 2001 in parts of Virginia, Maryland, Pennsylvania, and New York, as well as in all counties in Delaware, New Jersey, and the New England states.

AGR offers protection against a decline in farm revenue due to unavoidable natural disasters and market flunctuations and is designed to insure multiple agricultural commodities under a single insurance product. The AGR guarantee is based on the most recent five-year average farm revenue determined from the producer's Schedule F income tax forms adjusted for any changes in the farming operation. Covered farm revenue includes income from crops, other agricultural commodities, and incidental amounts of income from livestock and animal products and aquaculture.

The Federal Crop Insurance Corporation Board of Directors also approved several major improvements to the AGR program. The Board:

• Authorized higher payment rates to increase the effective coverage levels;
• Allowed fiscal year (non-calendar year) tax filers to apply;
• Relaxed eligibility requirements for persons whose tax entities changed during the five-year base period if the farming operation remained substantially the same.

With a fast-approaching application deadline of Jan. 31, 2001, Atkinson strongly urges growers in eligible counties to review this program with a crop insurance agent as soon as possible. AGR requires far less paperwork on the part of the grower than other Multi-Peril Crop Insurance programs and is a good way to guarantee a floor to your farm income.

AGR and other crop insurance policies are available exclusively through crop insurance agents. For availability of AGR in your county, contact your local crop insurance agent before Jan. 31, 2001. A list of crop insurance agents is available at all USDA Farm Service Agency county offices or through the RMA web site address: www3.rma.usda.gov/tools/agents/