The USDA has announced that Whole-Farm Revenue Protection insurance will be available in every county in the nation in 2016. The USDA is also making changes to the policy to give farmers and ranchers with diversified better access to Whole-Farm Revenue Protection, according to a USDA press release.
The USDA's Risk Management Agency (RMA) introduced the Whole-Farm Revenue Protection pilot program for a majority of counties in the 2015 insurance year. Starting with the 2016 insurance year, the new program will be available in all counties in the United States, a first for the federal crop insurance program.
USDA also provided additional flexibility to producers by making the following changes, including:
Beginning Farmers and Ranchers : RMA makes it easier for more beginning farmers and ranchers to participate in the program by reducing the required records from five to three historical years, plus farming records from the past year. Additionally, any beginning farmer and rancher may qualify by using the former farm operator's federal farm tax records if the beginning farmer or rancher assumes at least 90 percent of the farm operation.
Livestock Producers : RMA removed the previous cap that limited participants to those who received 35 percent or less of their income from livestock production. Producers will now be able to insure up to $1 million worth of animals and animal products.
Expanding Operations : RMA increased the cap on historical revenue for expanding operations to 35 percent from its previous 10 percent to better allow growing farms the opportunity to cover their growth in the insurance guarantee.
Whole-Farm Revenue Protection includes a wide range of available coverage levels, provides coverage for replanting annual commodities, includes provisions that increase coverage for expanding operations, and allows the inclusion of market readiness costs in the coverage. The policy is tailored for most farms, including farms with specialty or organic commodities (both crops and livestock), or those marketing to local, regional, farm-identity preserved, specialty, or direct markets. The policy covers farms or ranches with up to $8.5 million in insured revenue.
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