Center applauds steps to make crop insurance more accessible

policy associate Center for Rural Affairs

LYONS, NEBRASKA – In a win for producers across the country, the U.S. Department of Agriculture's Risk Management Agency recently announced changes to two crop insurance programs—Whole Farm Revenue Protection (WFRP) and Micro Farm. The improvements will expand access to risk management options for thousands of producers, particularly those with small or diversified operations.

"Managing risk is an essential part of a successful agricultural operation, no matter its size," said Kate Hansen, policy associate with the Center for Rural Affairs. "We commend the Risk Management Agency for making these changes."

WFRP is a unique crop insurance program that insures the entire revenue of an operation, rather than basing coverage on yields. It is often the best choice for diversified operations. Beginning in 2023, producers will now be able to insure up to $17 million in revenue with WFRP, compared to $8.5 million previously.

Other improvements include eliminating expense reporting to reduce paperwork, and allowing a producer to report and self-certify yields.

Micro Farm, a subprogram of WFRP, is designed to better serve small operations. Beginning in 2023, operations with up to $350,000 in approved revenue will be eligible for the program. The previous limit was $100,000.

"The $100,000 cap was not consistent with what a small operation looks like today," Hansen said. "More than tripling the allowed revenue will do a great deal to improve access to this important risk management program."

Coverage for both WFRP and Micro Farm follows a yearly timeline, corresponding with events of the growing season. If a producer files their taxes by the calendar year, the insurance period is the calendar year. If they file by the fiscal year, the insurance period is the fiscal year. Interested producers should get in touch with a crop insurance agent to explore if either program is a good fit.