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)?

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

WFRP is now available in all counties in U.S. in 2016

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 timeline

J F M A M J

Jan Dec

2016 crop year

WFR and MPCIWFR

WFR

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

Questions?

Call us Toll Free: 800-439-7533