Whole-Farm Revenue Protection and Micro Farm Program

Whole-Farm Revenue Protection (WFRP) provides a “safety-net” for all commodities on the farm under one insurance policy. The Micro Farm Program (MFP) was introduced beginning in the 2022 crop year. MFP follows the basic provisions of the WFRP policy and has reduced reporting requirements but is only available for farms with up to $350,000 in approved revenue.  

By protecting agricultural income rather than crop yields, WFRP and MFP extend insurance options to farmers with diverse production and specialty crops and to farmers relying on local and direct markets.

Basics

WFRP and MFP provide protection against loss of insured farm revenue due to unavoidable natural causes. Insured farm revenue is the farm’s approved revenue times the coverage level selected. Coverage levels range from 50-85%, increasing in 5% increments.

  Approved revenue is based on the lower of:

• The farm’s historic average revenue which is derived from 5 consecutive years of a producer’s IRS tax forms; or
• The expected revenue for this insurance year

Revenue from all commodities on the farm are covered, except timber, forest and forest products, and animals for sport, show, or pets. Also, revenue from livestock, nursery and greenhouse plants cannot exceed 35% of the farm’s expected revenue (with coverage limited to $2 million for each).

Losses occur when the allowable revenue from the production of commodities produced during the insurance year falls below the insured farm revenue. Notice of losses must be submitted to your crop insurance agent within 72 hours after discovery that farm revenue could be below insured revenue. Claims are made after farm taxes are filed for the insurance year, but no later than 60 days after tax forms have been submitted to the IRS.

WFRP and MFP can be purchased alone or in conjunction with other federal crop insurance policies. When purchased together, the WFRP premium is reduced because of coverage provided by the other policy.

Eligibility

Some of the key WFRP and MFP eligibility requirements are that you:  

• Be eligible to receive federal benefits;
• Be a US citizen or resident;
• File a Schedule F tax form (or acceptable substitute);
• Have 5 consecutive years of farm tax history;
• WFRP: Have no more than $8.5 million in insured revenue. MFP: Have no more than $350,000 of approved revenue (or $400,000 if a farm had a MFP policy the previous year); 
• Have no more than 50% of total revenue from commodities purchased for resale; and
• WFRP: Meet the diversification requirement of having two or more commodities if there are potatoes grown on the farm.

Application

The WFRP and MFP sales closing date for the New England states is March 15. To obtain coverage good records are needed. In addition to an application form, producers will need:

• A whole-farm history report showing historical revenues and expenses with supporting information; and
• A farm operations report showing intended production plans for the farm during the insurance year.

A revised farm operations report is due on July 15, noting any significant changes for the farm.

More Information on the Whole-Farm Revenue Protection program:

http://www.rma.usda.gov/Policy-and-Procedure/Insurance-Plans/Whole-Farm-Revenue-Protection 

More Information on the Micro Farm Program:   

https://www.rma.usda.gov/en/Fact-Sheets/National-Fact-Sheets/Micro-Farm-Program 

or contact:
Raleigh Regional Office
4405 Bland Road, Suite 160
Raleigh, NC 27609
Phone: (919) 875-4880

If you want to talk with a crop insurance agent about WFRP, a list of agents in your area may be obtained at: https://www.rma.usda.gov/Information-Tools/Agent-Locator

Written by Michael Sciabarrasi, Extension Professor (Retired), Agricultural Business Management, UNH Cooperative Extension and Paul Russell & Thomas Smiarowski, Agricultural Risk Management Educators, UMass Extension. Updated by Christina Howard, UMaine Extension.