Recordkeeping for

Crop InsuranceBen Paynter, Agricultural Reinvestment Fund, RAFI-USA

Clif Parker, Former RMA Assistant Deputy Administrator for Insurance Services

The Rural Advancement Foundation International (RAFI) combines on-the-ground services

with policy and market advocacy in order to ensure that farmers have the opportunity to make the right choices for

their farm and families and that these are also the right choices for the environment and farming communities.

What are we talking about today?

1. Basics of Recordkeeping

2. Paper and Electronic Methods for Recordkeeping

3. Recordkeeping for NAP

4. Recordkeeping for Whole Farm Revenue Protection

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Basics of Recordkeeping

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Four Things You Need for Crop Insurance

To be eligible for any kind of crop insurance, you need to:

1. Have a farm number2. Have a farm map3. Keep updated records on yield4. Keep updated records on price

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Farm Numbers

• Go to Farm Service Agency to get one• Free• Registration so you can be notified of federal

programs that apply to you• Doesn’t sign you up for anything• Requires proof of connection to land (lease,

written agreement, deed) and indication of your crop plan (enterprise budget, past yield info)

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Farm Maps

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Records for Yield

– Track planting and harvest dates

– Track how much your harvest

• By container or weight

• Make note of general weather conditions for that year (dry, wet, hail)

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Records for Price

– Regardless of where you sell, keep your records up to date every time you sell product• Include crop and market• Later, Schedule F’s

– Ideally, records that can be verified by a third party E.g. contract with a wholesaler• it’s verifiable if:

– it includes dates– Any additional confirmation beyond your own books, e.g.

electronic payment processing, farmers’ market summaries

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Paper and Electronic Records

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Rules for Records

• Keep it simple

• Keep it handy

• Keep it updated

• Keep it clear and consistent

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Techniques for Paper Records

• Yield:– Write on your field map– Binder of forms for the season– Spiral notebook on your dash

• Price:- Sales ledger- Organized receipts (paper clip by month)- Copies of contracts with vendors

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Sample Planting Form

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Sample Harvest Form

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Sample Sales Record

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Techniques for Electronic Records

• Many types of electronic records – Software, Apps, websites

• Range in price from free to $200ish• Here we are highlighting some of the range in

products available but not endorsing any particular product

• Additional resources available through extension, Farmers’ Legal Action Group, NCAT, and others

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Sample Electronic Records

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Recordkeeping for NAP

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What is NAP?

• NAP is the Noninsured Crop Disaster Assistance Program– available through the Farm Service Agency

• There are multiple crop insurance policies that cover specific kinds of crops, but they don’t cover every crop you can grow. – catch-all risk management program that covers

crops that don’t already have an insurance policy

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• Compared to crop insurance, NAP is a simpler program with fewer requirements.

• To be eligible for NAP, you must meet three qualifications:– you must have a farm number– you must be a landowner, tenant, or sharecropper who

shares in the risk of producing an eligible crop– Your average non-farm income cannot exceed $500,000

Eligibility for NAP

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• Coverage only applies for current and future crop years – You cannot apply crop insurance retroactively.

• For each crop year you want coverage, you need to provide the following:– Amount planted– Amount harvested (yield)– Amount sold

Applying for NAP

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For NAP, you need both harvest dates and amount harvested to determine your yield

- need to keep daily harvest records- Two kinds of yield:• Approved yield is the official number in FSA records that

shows how much yield your operation generates– based on your actual production history

• If you don’t have this many years of records then you can use a transitional yield (or t-yield). – expected average for your county

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Tracking Yield for NAP

Tracking Amount Sold for NAP

• Requires a daily record of amount sold to be turned in at the end of each season

– if you’re selling wholesale, keep track of your contracts and bills of lading

– If you’re selling direct, you can use records like the sample sales form from a few slides back.

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Crop Production Ledger

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Recordkeeping for Whole Farm

Revenue Protection (WFRP)

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What is WFRP?

– through the Risk Management Agency

– covers your whole farm in a single policy

– made to reward farmers for having diverse operations

– available nationwide

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Eligibility for WFRP

• WFRP requires more paperwork than other kinds of crop insurance.

• To be eligible for WFRP, you must:– Have a farm number– Make less than $8.5 million a year in insured

revenue– Show your revenue through 5 consecutive years of

tax statements, like Schedule F’s27

Applying for WFRP

• Like NAP, coverage only applies for current and future crop years – You cannot apply crop insurance retroactively.

• For each crop year you want coverage, you need to provide the following:– Farm plan for the year– Historic revenue– Projected revenue

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Farm Plan

• Record of what crops or livestock you plan to raise and how much you plan to produce– If certified organic you also need to provide proof

of your organic certification and organic plan

• You will also include:– markets where you plan to sell– prices you expect to receive

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Historic Revenue

• Historic revenue is based on 5 consecutive years of your Schedule F’s.

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Projected Revenue

• Projected revenue is an estimate of how much money is expected off your operation.

• Your crop insurance agent will calculate your projected revenue based on your farm plan and the historic revenue that you have received.

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Tracking Price for WFRP

• Since WFRP is based on revenue, tracking price is crucial for this policy.

• For WFRP it is very important to have this back-up documentation since your premium will be based on your historic revenue and projected revenue.

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Questions?

What records work best for you?

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THANK YOU!

Follow-up thoughts or questions? Email us at ben@rafiusa.org