Mastering Whole Farm Revenue Protection (WFRP): A Cornerstone for Agricultural Risk Management

WFRP is an increasingly popular crop insurance policy that has historically been available to diversified farming businesses. Unlike traditional crop insurance policies that focus on individual crops, WFRP insures the overall revenue of a farming business, making it particularly beneficial for diversified farms. This structure is especially valuable for producers of specialty crops, organic products, and direct-market commodities.

WFRP has grown in popularity over the past five years. with nearly 2,000 policies and $2.86 billion in liabilities written across the country for 2024, highlighting its importance as a risk management tool. The policy’s liability limit recently increased to $17 million, allowing it to cater to larger operations and higher-value farms. Despite the administrative challenges of WFRP, the policy offers valuable protection for farms operating across a wide range of commodities.

Key Benefits

1. High Coverage Levels:

   • Farmers can insure up to 85% of their expected revenue, up from a maximum of 80% in 2023.

   • Recent changes increased the liability limit to $17 million, making the policy more accessible to larger and higher-value operations.

2. Strong Subsidies and Discounts:

   • Premium subsidies increase with the number of commodities insured, maxing out at seven commodities.

   • Recent updates allow single-commodity farms to access Enterprise Unit-level subsidies, broadening WFRP's appeal.

3. Flexible Eligibility Requirements:

   • Farmers with catastrophic (CAT) coverage on an underlying policy now qualify.

   • Uses a five-year tax history to determine revenue, though newer farms can use alternative calculations.

   • For commodities without a standard Multi-Peril Crop Insurance (MPCI) policy, revenue is determined based on a 4-to-10-year yield build-up period.

Eligibility

If you're an agent, it's critical to understand the eligibility requirements of WFRP. Recent changes have broadened the pool of eligible producers, such as allowing those with underlying catastrophic (CAT) policies to qualify for WFRP coverage.

• For commodities without underlying MPCI, the base period to determine expected yields has shifted to a build-up of four to ten years, which offers greater flexibility but requires meticulous documentation.

• To qualify, farmers must have tax returns for the preceding five years (or a subset, depending on circumstances). Agents must verify these records carefully to ensure compliance.

• Agents should also ensure that all required forms, such as the Whole Farm History Report and the Intended Farm Operation Report, are submitted accurately and on time. You'll also need a Schedule F from the farmer.

Why WFRP Matters for the Future of Agriculture

With the growth of specialty crops, diversified farming operations, and adverse weather events, diversified revenue protection will play a crucial role in farm risk management. The Whole Farm program is evolving to accommodate more operations, making it an essential tool for farms looking to stabilize income across multiple commodities.

Till Insurance is committed to helping farmers and agents navigate WFRP. We work closely with clients to:

• Simplify the application and compliance process.

• Educate farmers and agents on maximizing subsidies and coverage options.

• Advocate for policy improvements to make WFRP even more accessible.

If you’re considering WFRP for your farm, or are an agent looking to get up the learning curve, contact Till Insurance today by sending us an email at info@tillinsurance.com.

Glossary

• MPCI (Multi-Peril Crop Insurance): Standard federal crop insurance policies that protect individual crops against specific risks.

• RMA (Risk Management Agency): The division of the USDA that oversees federal crop insurance programs.

• CAT (Catastrophic Coverage): The lowest level of crop insurance coverage available.

• Schedule F: A tax form used to report farm income and expenses, required for WFRP eligibility.

• Enterprise Unit (EU): A grouping of all of a farmer's acres of a single insured crop within a county, meaning a loss in one section of land can be offset by strong yields in another. Enterprise Units typically offer lower premium rates than Optional Units (OUs), where sections are insured separately.