Comprehensive Insurance Coverage

October 28, 2015 02:09 AM
Comprehensive Insurance Coverage

New policy complements multi-peril, includes crops and livestock

Even if you only grow corn, soybeans and wheat, it might be time to take a second look at insurance options. Recent modifications to existing federal programs have created a tool known as Whole-Farm Revenue Protection (WFRP), which presents a low-cost complement to existing coverage. 

“Many farmers I know will consider purchasing both regular multi-peril crop insurance as well as WFRP,” says Jamie Wasemiller, a market analyst for the Gulke Group and owner of Wasemiller Insurance.  That’s because multi-peril coverage provides prevented planting coverage, which WFRP does not, and it also provides superior replant coverage, Wasemiller says. Meanwhile, WFRP is based off of cash or contracted prices, which includes basis, whereas multi-peril coverage does not factor in basis.

WFRP will be available in all U.S. counties beginning with the 2016 insurance year. The program is particularly rewarding for diversified operations because it covers not only niche crops but also livestock.  

Factors To Weigh. “With 750 acres each of corn, soybeans and wheat, based on projected futures prices, the premium at the 85% level could insure $750,000 for about $7 an acre at a 56% subsidy rate,” he says. “At the 80% level, $713,000 could be insured for about $3.72 an acre at an 80% subsidy rate.”

Producers who grow organic and farm-to-table produce also benefit. 

“Niche crop growers are pretty excited about this,” notes Tony Jesina, senior vice president over insurance at Farm Credit Services of America/Frontier Farm Credit. 

Farms that have expanded or contracted in acreage over the past five years will need to spend time gathering documentation to illustrate those changes to USDA’s Risk Management Agency (RMA), says Keith Coble, an agricultural economist at Mississippi State University.

Yet for operations where the program fits well, the benefits can be significant, Wasemiller says. 

“This plan is tailored for any farm entity with up to $8.5 million in insured revenue, including farms with specialty or organic commodities, including crops and livestock, or those marketing to local, regional, identity-preserved, specialty or direct markets,” he says. 

The guarantee is based off the lower of either historical Schedule F or expected revenue for 2016, Wasemiller explains. With prices lower than previous years in most cases, the guarantee will be based off of expected revenue for 2016. 

5 Reasons To Consider Buying Whole-Farm Revenue Protection


It can work well for operations growing corn, soybeans and wheat as well as farms raising specialty crops. 

It works in cooperation with multi-peril crop insurance, meaning producers enjoy strengths of both. 

It is based off of cash or contracted prices, meaning basis is factored into calculations.  

It will be available in all U.S. counties effective with the 2016 insurance year; this year, the program covered 45 states.

Its guarantee is based off of the lower of either Schedule F or expected 2016 revenue; the latter likely will be used most often.

Jamie Wasemiller will provide an in-depth look at WFRP at the 2016 Top Producer Seminar. For more details and to register, visit


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