USDA Expands AGR Pilot Program

December 20, 2000

USDA will expand the adjusted gross revenue (AGR) crop insurance program. The "whole farm" insurance plan guarantees a percentage of the gross farm revenue derived from the sale of agricultural commodities. Larry N. Atkinson, director of the Raleigh, NC, regional office of USDA's Risk Management Agency said RMA will improve and expand the AGR with grower associations, several state agriculture departments, agricultural lenders, cooperative extension specialists, insurance companies, and other USDA agencies.

In the Middle Atlantic and northeastern regions, AGR now is available for 2001 in parts of Virginia, Maryland, Pennsylvania, and New York, as well as in all counties in Delaware, New Jersey, and the New England states.

AGR offers protection against a decline in farm revenue due to unavoidable natural disasters and market fluctuations and is designed to insure multiple agricultural commodities under a single insurance product. The AGR guarantee is based on the most recent five-year average farm revenue determined from the producer's Schedule F income tax forms adjusted for any changes in the farming operation. Covered farm revenue includes income from crops, other agricultural commodities, and incidental amounts of income from livestock and animal products and aquaculture.

The Federal Crop Insurance Corporation Board of Directors also approved several major improvements to the AGR program. The board authorized higher payment rates to increase the effective coverage levels; allowed fiscal year (non-calendar year) tax filers to apply; relaxed eligibility requirements for persons whose tax entities changed during the five-year base period if the farming operation remained substantially the same.

With a fast-approaching application deadline of Jan. 31, farmers ineligible counties were urged to review this program with a crop insurance agent as soon as possible.

A list of crop insurance agents is available at all USDA Farm Service Agency county offices or through the RMA web site address: www.rma.usda.gov/tools/agents/.