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Risk Management Farm-Bill and
Insurance OptionsHow to protect your farm’s Revenue!
Sloan-Leavitt Insurance Agency is an Equal opportunity provider and employer
What is Whole Farm Revenue (WFR)?
Revenue protection for the whole farm:• Natural causes of loss and decline
in market price during the insurance year
• Taxes must be filed for the insurance year before any claim can be made
• When revenue-to-count for the insurance year is lower than insured revenue, a loss payment will be made.
What does WFRP cover?
• Revenue from all commodities produced on the farm:
• Including animals and animal products• Commodities purchased for resale (up
to 50% of total)• Excluding timber, forest, forest
products, and animals for sport, show or pets
• WFRP is tailored for any farm and any crop. Especially for Specialty or Organic commodities.
• Crops policies with revenue coverage, like small-grains only, may not be able to purchase WFRP. 2nd or 3rd crop required.
What does WFRP cover?
NEW REPLANT COVERAGE:• Replant costs for annual commodities
• Actual cost up to a maximum of 20% of expected revenue for the crop
• Record of replant costs required
• Insurance company has approval authority
• Payable After loss of 20% of the crop or 20 acres
What are the features of WFRP? • Coverage levels 50-85%
• 5% increments• Diversification of 3 commodities (commodity count) required for 80%
and 85%• No catastrophic level of WFRP available
•Historic revenue is adjusted to reflect farm expansion• Automatic indexing process accounts for farm growth historically• Expanding operations provision allows for 35% growth over historic
average with insurance company approval
What are the features of WFRP?
• You may also purchase other Federal crop insurance policies covering individual commodities
• Must be at buy-up coverage levels• Any indemnities from these policies will count as revenue
earned under WFRP • No added value costs may be included
• All farm revenue is insured together under one policy• Individual commodity losses are not considered, it is the overall
farm revenue that determines losses
WFRP Premium Subsidy
Coverage Level 50% 55% 60% 65% 70% 75% 80% 85%
Commodity count = 1 67% 64% 64% 59% 59% 55% n/a n/a
Commodity count = 2 80% 80% 80% 80% 80% 80% n/a n/a
Commodity count = 3 80% 80% 80% 80% 80% 80% 71% 56%
WFRP Subsidy: Percentage of Total Premium Paid by Government
WFRP limits for qualification:
• Covers up to $8.5 million of revenue
• Farm/ranch may have expected revenue from animals and animal products up to $1 million
• Farm/ranch may have expected revenue from greenhouse/nursery up to $1 million
Diversity factor and Potatoes
• The commodity count measured by the farm diversification determines:
• Eligibility for WFRP• Potato farms must have 2
commodities• Commodities insurable with other
revenue coverage must have 2 commodities
• Potatoes must not exceed 83% farm revenue
• Eligibility for the 80 & 85% coverage levels Requires 3 commodities
New items for WFR?
1. Last day to purchase: Sales Closing Date• County specific date – March 15th
• Intended Farm Operation Report and application
2. Revised Farm Operation Report Due (Like an acreage report)• With application• July 15 for Calendar and Early Fiscal Filers (Jan-July fiscal years)• By end of first 30 days of fiscal year for August, September, October
fiscal years• By Oct 31 for November and December fiscal years
WFR: So how does it work?
Revenue
2010 $1,568,554
2011 $2,887,358
2012 $2,984,884
2013 $3,584,884
2014 $3,688,249
Average $2,942,786
$3,779,885
85%
$3,212,902trigger
Crop Acres Price Revenue
Wheat 255 $5.14 $283,688
Onions 125 $6.40 $1,545,584
Potato 375 $130 $1,462,500
Sw Corn 250 $120 $375,546
Beans 55 $0.56 $112,567
Totals: $3,779,885
2016 Crop plan
Premium: $59,594
Indexed $4,564,317
2016 Farm PlanFarm Revenue Worksheet 0
Crop Acres Yield/Acre Unit Production Price/Unit 2016 Estimate Qualifying Crop %
Wheat 255 box - 5.14 $ 283,688 #DIV/0! 1 100.00%Onions 125 cwt - 6.4 $ 1,545,584 #DIV/0! 2 16.65%Potato 375 cwt - 130 $ 1,462,500 #DIV/0! 3 11.10%Sweet Corn 250 ton - 120 $ 375,546 #DIV/0! 4 8.33%Dry Beans 55 lbs - 0.56 $ 112,567 #DIV/0! 5 6.66%
- $ - #DIV/0! 6 5.55%- $ - #DIV/0! 7 4.76%- $ - #DIV/0! 8 4.16%- $ - #DIV/0! 9 3.70%- $ - #DIV/0! 10 3.33%- $ - #DIV/0! 11 3.03%
Totals 0.0 $ 3,779,885
What prices can I use on my crops?
The 3 rules on pricing:1. Multi Peril Crop Insurance (MPCI)
prices2. Contract price3. 5 year average net prices from
qualified farm records
Crop Insurance Comparison for Oilseed Rotation Farming
Crop MPCI 75%
Wheat SF $3,975
Canola $2,887
Mustard $7,425
Total Coverage: $563,156
Insurance Premium:
$14,287
Compare Premiums:
$14,287
MPCI 50% WFRP 75% WFRP 80% WFRP 85%
$200
$538
$1,800
$563,071 $600,609 $638,147
$2,646 $4,529 $8,283
$5,184 $7,067 $10,821
Traditional Crop Insurance MPCI with new Whole Farm Revenue
What will my agent need from me?1. Five years of farm tax forms, 2010-2014
• Needs to know if you are a:• Calendar year tax filer• Fiscal year tax filer and what your fiscal
year is2. 2016 Farm Plan
• Used to complete the Intended Farm Operation Report
3. Other information as applicable• Such as supporting records, your organic
certification, inventory or accounts receivable information
Paul RisenmayCell: 509-760-6474
Heber LoughmillerCell: 208-358-2494
Ryan HullCell: 509-302-5180
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