Risk ManagementUnderstanding WFRPDean Benson- SVP Corporate Crop Insurance Services

Risk Management – Safety Net

Whole Farm Revenue Protection (WFRP)

• What is it?• Revenue safety net for all commodities

grown under the farm entity under one policy

• Umbrella Policy• With a Revenue Trigger

Insurability• Commodity

• Any agricultural product established or produced on your farm operation, except timber, forest and forest products, animals for sport, show or pet.

Availability2014 to Current WFRP Pilot Area Progression

NWFCS Whole Farm Revenue Sales

Market ShareYear       Territory  National2014 57.9% 47.1%2015 54.1% 41.0%2016 46.3% 23.8%2017 45.0% 19.8%

2017 National Premium$142.7M

Coverage Levels$1,000,000 – Whole Farm Revenue

(WFR)

$800,000 – Approved Expenses

70% of Allowable Expenses

CURRENT 50% 55% 60% 65% 70% 75% 80% 85%

Income Trigger $500,000 $550,000 $600,000 $650,000 $700,000 $750,000 $800,000 $850,000

CURRENT 50% 55% 60% 65% 70% 75% 80% 85%

Expense Trigger $560,000 $560,000 $560,000 $560,000 $560,000 $560,000 $560,000 $560,000

Revenue Trigger

Guaranteed amount of insured crop revenue

E.g.‐ $750,000 – Revenue Trigger$600,000 – Revenue to Count $150,000 – WFRP claim payment

Coverage Levels & Qualifying Commodities• Coverage levels from 50% - 85%

• for the 80% or 85% coverage Level you must have 3 or more qualifying commoditiesQualifying                 Qualifying

Commodities Percentage

1 100.0%

2 16.65%

3  11.1%

4 8.33%

5 6.66%

6 5.55%

7     4.76%

8 4.16%

9 3.70%

10 3.33%       

The number of qualifying commodities reduces the premium rate factor

Subsidy Percentage

Coverage Level 50% 55% 60% 65% 70% 75% 80% 85%

Basic Subsidy   (1 Commodity) 67% 64% 64% 59% 59% 55% NA NA

WFRP Subsidy (2 Commodities) 80% 80% 80% 80% 80% 80% NA NA

WFRP Subsidy (3+ Commodities) 80% 80% 80% 80% 80% 80% 71% 56%

Selling Features

• Liability (coverage) to premium ratio is very appealing (in most cases)

• Works in partnership with other crop insurance policies

• Revenue Guarantee• Marketing Challenges /

Opportunities

Potential Trip Wires

• Information Gathering

• Guarantees Changing

• Projected Revenue

• Expense Trigger

Claims Process• Settlement:

• After taxes are filed for the insurance period• By excluding revenue from crops grown in

previous years• By including the value of crops that haven’t

been harvested or sold – estimated value• By counting all other crop insurance claim

payments as revenue to count with the exception of Crop Hail – Not to exceed the WFRP deductible (new in 2018)

WFRP Training