RMA Announces Whole-Farm Revenue Protection Changes
USAgNet - 09/17/2020
The USDA's Risk Management Agency announced modifications to the Whole-Farm Revenue Protection (WFRP) program to decrease paperwork and recordkeeping burdens for direct marketers beginning with the 2021 crop year.
"These changes will allow more direct marketers who previously could not meet reporting requirements a way to participate in the Whole-Farm program and provide better and more affordable coverage to these diversified growers," RMA Administrator Martin Barbre said.
RMA held several stakeholder meetings with agents, growers and grower groups to solicit feedback on ways to increase the effectiveness of the WFRP program, as required by the Agricultural Improvement Act of 2018 (Farm Bill). Stakeholders recommended RMA decrease the requirements for reporting yield and revenues for each commodity, which is especially difficult for direct marketers who may sell several commodities through a roadside stand.
The newly implemented modifications allow growers to report two or more direct-marketed commodities as a combined single commodity code with a combined expected revenue for all commodities. Additionally, the combined direct-marketed commodities will count as two commodities in calculating the diversification premium discount. Under WFRP, farms with two or more commodities receive a premium rate discount, reflecting the lower risk of revenue loss due to the farm's diversification. Revenue history will be based on reported revenue from the combined direct-marketed commodities and total acres planted to those commodities. This lessens reporting burdens by alleviating the requirement to report detailed sales or yield records from any specific commodity reported under the direct market commodity code.
RMA is authorizing additional flexibilities due to coronavirus while continuing to support producers, working through Approved Insurance Providers (AIPs) to deliver services, including processing policies, claims and agreements. RMA staff are working with AIPs and other customers by phone, mail and electronically to continue supporting crop insurance coverage for producers. Farmers with crop insurance questions or needs should continue to contact their insurance agents about conducting business remotely (by telephone or email). More information can be found at farmers.gov/coronavirus.
Crop insurance is sold and delivered solely through private insurance agents. A list of insurance agents is available online using the RMA Agent Locator. Learn more about crop insurance and the modern farm safety net at rma.usda.gov.
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