2023 Whole-Farm Revenue Protection Pilot Handbook (Reissued) - Transition to Organic Partnership Program

This handbook provides procedures for underwriting and loss adjustment for the WFRP plan of insurance.
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2022

PDF

United States
Department of
Agriculture

Federal Crop
Insurance
Corporation
FCIC-18160-1 (10-2022)

WHOLE-FARM
REVENUE
PROTECTION PILOT
HANDBOOK
2023 and Succeeding Policy
Years

THIS PAGE IS INTENTIONALLY LEFT BLANK

UNITED STATES DEPARTMENT OF AGRICULTURE
FARM PRODUCTION AND CONSERVATION
RISK MANAGEMENT AGENCY
KANSAS CITY, MO 64133
TITLE: WHOLE-FARM REVENUE PROTECTION PILOT
HANDBOOK
EFFECTIVE DATE: 2023 and Succeeding Policy Years
SUBJECT:

NUMBER: FCIC–18160-1
OPI: Product Management
ISSUE DATE: October 28, 2022
APPROVED:

Provides the procedures and instructions for the
Whole-Farm Revenue Protection plan of insurance

/s/ Richard H. Flournoy
Deputy Administrator for Product Management

REASON FOR ISSUANCE
This handbook provides procedures for underwriting and loss adjustment for the WFRP plan of insurance.
SUMMARY OF CHANGES
Listed below are the changes to the 2023 FCIC-18160-1 Whole-Farm Revenue Protection Pilot Handbook with
significant content change. All changes, and additions are highlighted. Minor changes and corrections are not
included in this listing. *** used throughout the handbook indicate where major deletions occurred.
Reference
Throughout
Throughout
Subparagraph 1C
Subparagraph 1E
Subparagraph 1F
Subparagraph 3A
Subparagraph 3B
Subparagraph 7(2)
Subparagraph 21(3) &
(5)
Paragraph 45
Subparagraph 48(2)
Paragraph 49
Subparagraph 49(9)(f)
Subparagraph 49(9)(g)
Subparagraph 49(10)
Subparagraph 71E

October 2022

Description of Change
Updated to meet the new External Handbooks Standards; including renumbering when
applicable (See crosswalk chart below), updating references, and several editorial
edits.
Removed references and procedures related to Allowable and Approved Expenses.
Page 1: Added required civil rights language.
Page 2: Added duration of handbook subparagraph.
Page 2: Removed the address associated with RMA as it is not applicable.
Page 6: Added example for late fiscal year filers electing Micro Farm.
Page 7: Added language regarding retention of farm tax farm expense records.
Page 8: Added language regarding post-production expenses related to accrual
accounting method.
Page 12: Updated language to the new $17 million insured revenue limit for WFRP and
$350,000/$400,000 for Micro Farm, respectively.
Page 25: Removed all language related to Allowable Expenses and the Allowable
Expense Worksheet.
Page 28: Added language requiring the reporting of commodities not insured by
another policy on the Yield and Revenue Report.
Pages 33-38: Reformatted and renumbered the RFOR procedures.
Page 35-36: Updated Example 3 to reflect edits to procedures in (f).
Pages 34-36: Revised procedures for the 40% reduction of Expected Revenue for
commodities not planted due to insured COLs on the RFOR.
Page 38: Revised language and example for the new $17 million insured revenue limit.
Page 51: Reformatted and renumbered the Expanding Operation calculation
procedures.

FCIC-18160-1

TP 1

SUMMARY OF CHANGES (Continued)
Reference
Paragraph 72
Paragraph 74
Paragraph 102
Subparagraph 107E
Subparagraph 123(3)
Subparagraph 161(4)(a)
Exhibit 1
Exhibit 2

Exhibit 3N
Exhibit 4 items 9a-e, 10c,
& 16c
Exhibit 6
Exhibit 7 item 8 & 11
Exhibit 8 items 22a-b
Exhibit 10
Exhibit 15 items 12-16,
18, & 23
Exhibit 18B & C
Exhibit 18B(4)(c)(ii)
Exhibit 18C(3)

Description of Change
Page 58: Removed all language related to Allowable and Approved Expenses.
Page 62: Removed language related to Accounts Payable and Prepaid Expenses.
Page 72: Removed language related to adjustments to expenses.
Page 77: Removed procedures for Expense Reduction Factor calculations.
Page 79-80: Removed language referencing Adjusted Approved Revenue
calculations.
Page 99: Added language requiring the removal of cost of commodities purchased
for resale from expected revenue under Micro Farm.
Page 101: Added GSH and OPI acronym.
Pages 102-111: Removed definitions for Allowable Expenses, Approved Expenses,
Average Allowable Expenses, Beginning Accounts Payable, Ending Accounts Payable,
Expense Reduction Factor, and Prepaid Expenses.
Added “elevator” to the list of potential verifiable records.
Pages 121-122: Removed Allowable Expense Worksheet and added standards for
Yield and Revenue Report.
Pages 126-128: Removed requirements to document expenses.
Pages 135-137: Renamed report to Accounts Receivable Report and removed Parts 3
& 4.
Page 139: Added language requiring reporting of commodities on hand at the
beginning of the tax year but sold prior to insurance attachment for the purpose of
adjusting the revenue at claim time.
Page 151: Removed requirement to report Approved Expenses.
Pages 158-160: Added new Yield and Revenue Report for documentation of required
information related to commodities not insured by another FCIC policy.
Pages 174-175: Removed requirements to calculate the Expense Reduction Factor
and Adjusted Approved Revenue.
Page 185-195: Reformatted and renumbers the Expected Value and Yield
procedures.
Page 185-187: Added language clarifying considerations to made if using the FCIC
price as expected value with an example.
Page 190: Added requirement to document yield and revenue history for
commodities not insured by another FCIC policy on the Yield and Revenue Report.

The following is a crosswalk table for the converted 2023 WFRP Pilot Handbook.
Old Exhibit
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5
Exhibit 6
Exhibit 7
Exhibit 8
Exhibit 9
Exhibit 10

October 2022

New Exhibit
Exhibit 1
Exhibit 2
Exhibit 19
Exhibit 20
Exhibit 3
Exhibit 4
Exhibit 5
Exhibit 6
Exhibit 7
Exhibit 8

Old Exhibit
Exhibit 11
Exhibit 12
Exhibit 13
Exhibit 14
Exhibit 15
Exhibit 16
Exhibit 17
Exhibit 18
Exhibit 19
Exhibit 20

FCIC-18160-1

New Exhibit
Exhibit 11
Exhibit 12
Exhibit 13
Exhibit 10
Exhibit 14
Exhibit 15
Exhibit 17
Exhibit 18
Exhibit 16
Exhibit 9

TP 2

RISK MANAGEMENT AGENCY WHOLE-FARM REVENUE PROTECTION
CONTROL CHART

Current Index

TP
Page(s)
1-4

TC
Page(s)
1-4

Text
Page(s)
1-100

Exhibit
Page(s)
101-198

Date
10-2022

Directive
Number
FCIC-18160-1

FILING INSTRUCTIONS
This handbook replaces FCIC-18160, Whole-Farm Revenue Protection Pilot Handbook, dated December 17,
2021, and October 17, 2022. This handbook is effective for the 2023 and succeeding policy years.

October 2022

FCIC-18160-1

TP 3

RESERVED

October 2022

FCIC-18160-1

TP 4

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK
TABLE OF CONTENTS
PART 1: GENERAL INFORMATION AND RESPONSIBILITIES …………………………………………………………………. 1
1
2
3
4
5
6
7
8-20

General Information ……………………………………………………………………………………………………….. 1
Responsibilities ………………………………………………………………………………………………………………. 2
Access to Commodities and Records …………………………………………………………………………………. 6
Document Origination …………………………………………………………………………………………………….. 8
Duplicate WFRP Policies ………………………………………………………………………………………………….. 9
Tax Years ……………………………………………………………………………………………………………………….. 9
Accounting Methods ……………………………………………………………………………………………………….. 9
(Reserved) ……………………………………………………………………………………………………………………. 10

PART 2: WFRP POLICY INFORMATION …………………………………………………………………………………………. 11
21
Eligibility ………………………………………………………………………………………………………………………. 11
22
Pre-Acceptance Inspections……………………………………………………………………………………………. 14
23
Application …………………………………………………………………………………………………………………… 14
24
Vertically Integrated and Related Tax Entity …………………………………………………………………….. 17
25-40 (Reserved) ……………………………………………………………………………………………………………………… 17
PART 3: COVERAGE AND REPORTS ……………………………………………………………………………………………… 18
Section 1 Coverage Information and Required Reports…………………………………………………………. 18
41
Basic Information and Commodity Count ………………………………………………………………………… 18
42
Coverage Levels ……………………………………………………………………………………………………………. 22
43
Replant Payments …………………………………………………………………………………………………………. 23
44
Allowable Revenue and Allowable Revenue Worksheet…………………………………………………….. 23
45
(Reserved) ……………………………………………………………………………………………………………………. 26
46
Whole-Farm History Report ……………………………………………………………………………………………. 26
47
Use of a Different Person’s Tax Returns …………………………………………………………………………… 27
48
Intended Farm Operation Report ……………………………………………………………………………………. 29
49
Revised Farm Operation Report ……………………………………………………………………………………… 32
50
Final Farm Operation Report ………………………………………………………………………………………….. 40
51
IRS Tax Forms and Verifiable Records and/or Direct Marketing Sales Records ……………………… 40
52
WFRP Database …………………………………………………………………………………………………………….. 43
53
Premium Calculation and Subsidy …………………………………………………………………………………… 44
54-70 (Reserved) ……………………………………………………………………………………………………………………… 44
Section 2 Revenue Calculations ………………………………………………………………………………………… 45
71
Revenue ………………………………………………………………………………………………………………………. 45
72
(Reserved) ……………………………………………………………………………………………………………………. 59
73
Inventory ……………………………………………………………………………………………………………………… 60
74
Accounts Receivable Report …………………………………………………………………………………………… 62

October 2022

FCIC-18160-1

TC 1

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK
TABLE OF CONTENTS
PART 4: LOSS AND CLAIM INFORMATION …………………………………………………………………………………….. 64
Section 1 Loss Information ………………………………………………………………………………………………. 64
91
Insurable Losses ……………………………………………………………………………………………………………. 64
92
Uninsurable Losses ……………………………………………………………………………………………………….. 64
93
Quality Determinations………………………………………………………………………………………………….. 67
94
Duties in the Event of Damage or Loss …………………………………………………………………………….. 67
95
Replant Payment…………………………………………………………………………………………………………… 69
96-100 (Reserved) ……………………………………………………………………………………………………………………. 71
Section 2 Claim Information…………………………………………………………………………………………….. 72
101 Adjustments to Revenue………………………………………………………………………………………………… 72
102 (Reserved) ……………………………………………………………………………………………………………………. 73
103 Changes Occurring Within Policy Year ……………………………………………………………………………… 73
104 Changes That Occurred in Year Prior to Policy Year …………………………………………………………… 75
105 Damage and Price Fluctuation That Occurred in the Year Prior to the Policy Year ………………… 75
106 Revenue-to-Count …………………………………………………………………………………………………………. 75
107 Indemnities ………………………………………………………………………………………………………………….. 77
108-120 (Reserved) ………………………………………………………………………………………………………………….. 79
PART 5: ADMINISTRATIVE PROVISIONS ……………………………………………………………………………………….. 80
121 Assignment of Indemnity ……………………………………………………………………………………………….. 80
122 Transfer of Coverage……………………………………………………………………………………………………… 80
123 Other Insurance and NAP ………………………………………………………………………………………………. 80
124 Commodities as Payments……………………………………………………………………………………………… 81
125 Mediation, Arbitration, and Judicial Reviews of AIP Determinations …………………………………… 81
126 Controlled Substance Provisions …………………………………………………………………………………….. 81
127-140 (Reserved) ………………………………………………………………………………………………………………….. 82
PART 6: SPECIAL CIRCUMSTANCES ……………………………………………………………………………………………… 83
141 Organically Grown Commodities …………………………………………………………………………………….. 83
142 Post-Production Operations and Market Readiness ………………………………………………………….. 85
143 Animals………………………………………………………………………………………………………………………… 87
144 Nursery/Greenhouse …………………………………………………………………………………………………….. 90
145 Commodities with Market Order Reserves ………………………………………………………………………. 92
146 Commodities Sold with Co-op Retainages………………………………………………………………………… 93
147 Vertically Integrated Operations …………………………………………………………………………………….. 95
148 Commodities Purchased for Resale …………………………………………………………………………………. 96
149 Industrial Hemp ……………………………………………………………………………………………………………. 97
150 Combined Direct Marketing Commodities ……………………………………………………………………….. 98
151-160 (Reserved) ………………………………………………………………………………………………………………….. 99

October 2022

FCIC-18160-1

TC 2

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK
TABLE OF CONTENTS
PART 7: MICRO FARM ………………………………………………………………………………………………………………100
161

Micro Farm …………………………………………………………………………………………………………………. 100

EXHIBITS…………………………………………………………………………………………………………………………………102
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5
Exhibit 6
Exhibit 7
Exhibit 8
Exhibit 9
Exhibit 10
Exhibit 11
Exhibit 12
Exhibit 13
Exhibit 14
Exhibit 15
Exhibit 16
Exhibit 17
Exhibit 18
Exhibit 19
Exhibit 20

October 2022

Acronyms and Abbreviations …………………………………………………………………………………. 102
Definitions …………………………………………………………………………………………………………… 103
Form Standards ……………………………………………………………………………………………………. 114
Whole-Farm History Report …………………………………………………………………………………… 126
Inventory Report ………………………………………………………………………………………………….. 131
Accounts Receivable Report …………………………………………………………………………………… 136
Market Animal and Nursery Inventory Report………………………………………………………….. 139
Farm Operation Report …………………………………………………………………………………………. 146
Expected Value and Yield Source Document Certification Worksheet…………………………. 156
Yield and Revenue Report ……………………………………………………………………………………… 159
Replant Payment Worksheet …………………………………………………………………………………. 162
Schedule F Example………………………………………………………………………………………………. 165
Substitute Schedule F Example ………………………………………………………………………………. 167
Allowable Revenue Worksheet ………………………………………………………………………………. 169
Claim for Indemnity Form ……………………………………………………………………………………… 175
Direct Marketing Sales Records ……………………………………………………………………………… 180
Inventory Valuation Guidelines………………………………………………………………………………. 182
Expected Value and Yield Guidelines ………………………………………………………………………. 184
Method of Establishment………………………………………………………………………………………. 198
Unit of Measure …………………………………………………………………………………………………… 199

FCIC-18160-1

TC 3

RESERVED

October 2022

FCIC-18160-1

TC 4

PART 1: GENERAL INFORMATION AND RESPONSIBILITIES
1

General Information
A.

Purpose and Objective
This handbook provides information, procedures, and instructions for administering the WFRP
program, including Micro Farm.
WFRP pilot provides protection against loss of revenue that the insured expects to earn or will
obtain from commodities produced or purchased for resale during the insurance period.
All terms referenced in this handbook have the same meaning as defined in the WFRP policy or
Micro Farm Provisions (if applicable).

Source of Authority
The WFRP pilot program is an RMA developed product approved by the FCIC Board of Directors
under Section 522(c) of the Act. It is not codified in the CFR.

Title VI of the Civil Rights Act of 1964
The USDA prohibits discrimination against its customers. Title VI of the Civil Rights Act of 1964
provides that “No person in the United States shall, on the ground of race, color, or national
origin, be excluded from participation in, be denied the benefits of, or be subjected to
discrimination under any program or activity receiving Federal financial assistance.” Therefore,
programs and activities that receive Federal financial assistance must operate in a nondiscriminatory manner. Also, a recipient of RMA funding may not retaliate against any person
because they opposed an unlawful practice or policy, or made charges, testified, or participated
in a complaint under Title VI.
It is the AIPs’ responsibility to ensure that standards, procedures, methods, and instructions, as
authorized by FCIC in the sale and service of crop insurance contracts, are implemented in a
manner compliant with Title VI. Information regarding Title VI of the Civil Rights Act of 1964
and the program discrimination complaint process is available on the USDA public website at
www.ascr.usda.gov. For more information on the RMA Non-Discrimination Statement see the
DSSH.

Related Handbooks
The following table provides handbooks related to this handbook.

October 2022

FCIC-18160-1

General Information (Continued)
D.

Related Handbooks (Continued)
Handbook
Relation/Purpose
This handbook provides the official FCIC approved form standards and procedures
DSSH
for use in the sale and service of any eligible Federal crop insurance policy; required
statements and disclosures; and the standards for submission and review of nonreinsured supplemental policies in accordance with the SRA.
This handbook provides the official FCIC approved underwriting standards for
CIH
policies administered by AIPs for the General Administrative Regulations, Actual
Production History Regulation Subpart G; Common Crop Insurance Policy Basic
Provisions, and Area Risk Protection Regulations.
This handbook provides the official FCIC approved standards for policies
GSH
administered by AIPs under the General Administrative Regulations, Common Crop
Insurance Policy Regulations Basic Provisions, including the Catastrophic Risk
Protection Endorsement, Actual Production History Regulation Subpart G; the Area
Risk Protection Insurance Regulations Basic Provisions; the Stacked Income
Protection Plan of Insurance; the Rainfall and Vegetation Index Plans; and the
Whole-Farm Revenue Protection Pilot Policy.

Duration of Handbook
The WFRP pilot will continue until cancelled by FCIC or no rate is filed.

Procedural Questions
(1)

Questions regarding WFRP procedures in this handbook are to be directed:
(a)

to the AIP; then, if not resolved,

(b)

through appropriate channels within the AIP to the applicable RMA RO; then if
not resolved,

(c)

through appropriate channels within the AIP to RMA’s PASD by e-mail at
rma.wfrp@usda.gov. ***

RMA will not attempt to instruct agents or insureds of the AIP.
(2)
2

If a perceived error is identified, notify RMA by e-mail at rma.wfrp@usda.gov. Clearly
identify the error and provide a proposed correction. ***

Responsibilities
A.

RMA Responsibilities
RMA will:
(1)

October 2022

establish and maintain the policy, procedure, and instructions for administering the
WFRP program; and
FCIC-18160-1

Responsibilities (Continued)
A.

RMA Responsibilities (Continued)
(2)

provide guidance and clarification, as needed, regarding the policy, procedure, and
instructions for the WFRP program.

AIP Responsibilities
AIPs must:

October 2022

(1)

offer WFRP to all persons;

(2)

provide persons insured under the WFRP policy a copy of the WFRP policy and the Micro
Farm Provisions (if applicable);

(3)

comply with and implement the standards, procedures, instructions, and requirements
in the WFRP policy and the Micro Farm Provisions (if applicable), this handbook, and
other documents issued by RMA;

(4)

report any program issues or concerns regarding the WFRP to RMA, Director of PASD;

(5)

instruct the insured of their responsibilities in accordance with the WFRP policy, Micro
Farm Provisions (if applicable), and Subparagraph 2D;

(6)

prior to acceptance, ensure the application is accurate and complete;

(7)

ensure all documentation, determinations, and calculations are completed as provided
in the WFRP policy, Micro Farm Provisions (if applicable), and this handbook;

(8)

notify insured of changes following the AIP underwriting reviews;

(9)

update revenue databases for carryover insureds;

(10)

for policies being transferred, an assuming AIP must:
(a)

verify the revenue history;

(b)

notify the insured their premium and loss experience will be transferred;

(c)

notify the insured their revenue history will be verified and transferred;

(d)

notify the insured of policy termination if they are indebted to the ceding AIP;
and

(e)

notify the ceding AIP when it has accepted the transferred policy.

(11)

if necessary, make farm visits to determine beginning and ending inventories, such as
bin or storage facility measurements, and pre-acceptance inspections;

(12)

ensure all forms and reports required under the WFRP policy or the Micro Farm
Provisions (if applicable) are properly signed and dated by the insured;
FCIC-18160-1

Responsibilities (Continued)
B.

AIP Responsibilities (Continued)
(13)

complete all quality control reviews and audits according to the SRA, Appendix IV; and

(14)

flag the policy for review when yields or expected values on the FOR are questionable.

Agent Responsibilities
Agents must:

(1)

understand the qualification requirements for the program and explain all program
participation requirements and deadlines to applicants and insureds;

(2)

be able to explain the WFRP program to applicants and insureds;

(3)

determine the correct allowable revenue for each year in the whole-farm history period
using associated tax returns, applicable worksheets, and supporting documentation;
***

(4)

review all reports for completeness and accuracy, and insure all applicable signatures
and dates are provided;

(5)

obtain all records and documentation required for program participation;

(6)

provide all applicable forms and records to the AIP; and

(7)

refer requests to the AIP for farm visits to determine beginning and ending inventories,
such as bin or storage facility measurements, and pre-acceptance inspections.

Insured’s Responsibilities
The AIP must advise the insureds to:

October 2022

(1)

Provide complete farm tax records for each year in the five year whole-farm history
period unless fewer years are required. Refer to Subparagraph 21(1)(c)(vi) and (vii).

(2)

Show additional tax records if necessary so the AIP can verify that farm taxes were filed.
For example, if the farm operation includes a disregarded entity under IRS rules, the AIP
may request other tax records to verify the entity information under which the entity’s
taxes were filed.

(3)

Provide the necessary information to complete their IFOR for the insurance period.
Information from other federal crop insurance plans of insurance the insured has may
also be required by the AIP to use in underwriting the WFRP policy. This may include
actual production histories and acreages.

(4)

Provide any applicable organic documentation requested by the AIP. Refer to Paragraph
141.
FCIC-18160-1

October 2022

FCIC-18160-1

Responsibilities (Continued)
D.

Insured’s Responsibilities (Continued)
(5)

Provide information about any changes to the farm operation to the AIP during the year.
Refer to Subparagraph 48(6).

(6)

Provide the necessary information to complete their RFOR for the insurance period.

(7)

Provide all necessary notices in a timely manner to the AIP.

(8)

Complete the final production report on the FFOR by the earlier of the time a claim is
submitted or the SCD of the subsequent policy year.

(9)

Comply with all the terms and conditions of the WFRP policy and the Micro Farm
Provisions (if applicable).

(10)

Provide completed Schedule F or Substitute Schedule F form along with the original
farm tax forms and verifiable and/or direct marketing sales records for consideration by
the AIP for insurance, if an insured has short tax years in the farm history and wants to
insure under WFRP.

(11)

Provide any records or information requested by the AIP for underwriting or loss
adjustment of the policy.

(12)

Provide information to the AIP regarding insurance obtained from any other AIP or from
any FSA office (e.g., NAP) on commodities covered by WFRP. The information provided
must include the date such insurance was obtained.

Note:

If the insured fails to timely submit any required information, or the AIP is unable to
verify the information that was submitted, the AIP will deny any indemnity, or
replant payment and the insured will still be required to pay the premium due.

Access to Commodities and Records
A.

Record Retention
Insureds are required to retain complete verifiable records and direct marketing sales records
for three years after the later of the:
(1)

end of the insurance period; or

(2)

date of final payment of the indemnity.

The record retention period applies to the records for the insurance period and all years in the
whole-farm history period for the insurance period.

October 2022

FCIC-18160-1

Access to Commodities and Records (Continued)
A.

Record Retention (Continued)
Example 1:

The whole-farm history period for a calendar or early fiscal year filer for the 2023
policy year is 2017, 2018, 2019, 2020, and 2021 (2022 is a lag year and is not
included in the 2023 whole-farm history period). Verifiable records for 2017
through 2021, all years in the whole-farm history period, and for 2023 must be
maintained for three years after the insurance period for 2023 ends or the date
of final payment of indemnity for the 2023 policy year, whichever is later.

Example 2:

The whole-farm history period for a late fiscal year filer for the 2023 policy year
are tax years 2016, 2017, 2018, 2019, and 2020 (Tax year 2021 is a lag year and is
not included in the 2023 whole-farm history period). Verifiable records for 2016
through 2020, all years in the whole-farm history period, and for 2023 (tax year
2022) must be maintained for three years after the insurance period for policy
year 2023 ends or the date of final payment of indemnity for the 2023 policy
year, whichever is later.

Example 3:

The whole-farm history period for an insured that elects Micro Farm and is a
calendar or early fiscal year filer for the 2023 policy year with three years of tax
records is 2020, 2021, and 2022. Verifiable records for 2020 through 2022, all
years in the whole-farm history period, and for 2023 must be maintained for
three years after the insurance period for 2023 ends or the date of the final
payment of indemnity, whichever is later.

Example 4:

The whole-farm history period for an insured that elects Micro Farm and is a late
fiscal year filer for the 2023 policy year with three years of tax records is 2019,
2020, and 2021. Verifiable records for 2019 through 2021, all years in the wholefarm history period, and for 2023 (tax year 2022) must be maintained for three
years after the insurance period for policy year 2023 ends or the date of final
payment of indemnity for the 2023 policy year, whichever is later.

The AIP or any employee of USDA, or any person acting for the AIP or USDA authorized to
investigate or review any matter relating to insurance authorized under the Act may extend the
record retention period beyond three years by notifying the insured of such extension in
writing.
B.

Accessing Records and Commodities
Within the record retention period, insureds must, upon request, provide complete verifiable
records and/or direct marketing sales records to the AIP, any employee of USDA, or any person
acting for the AIP or USDA authorized to investigate or review any matter relating to insurance
authorized under the Act. Insureds must also, upon request, obtain records from any person
who may have custody of such records, including but not limited to, FSA offices, banks,
warehouses, gins, cooperatives, marketing associations, landlords, and accountants.
Records that may be accessed include, but are not limited to, records pertaining to the:

October 2022

FCIC-18160-1

Access to Commodities and Records (Continued)
B.

Accessing Records and Commodities (Continued)
(1)

planting, replanting, inputs, production, harvest, storage, sale, shipment, and
disposition of the insured commodities;

(2)

insurable, insured, and uninsured acres;

(3)

facilities;

(4)

allowable revenue stated on farm tax forms and supporting documents; ***

(5)

value of any post-production operations for insured commodities (if applicable);

(6)

documentation supporting beginning and ending inventories, and accounts receivable;
***

(7)

ownership, share, lease, contract agreement, or other agreements that are applicable to
the insured commodities;

(8)

Expenses stated on the farm tax forms, including all forms and records supports these
figures; and

(9)

mediation, arbitration, and litigation records related to the insured and insured
commodities.

The AIP or any employee of USDA, or any person acting for the AIP or USDA, authorized to
investigate or review any matter relating to insurance authorized under the Act may examine
the insured commodities at any location where such commodities may be found or maintained.
Such commodities may be examined as often as reasonably necessary during the record
retention period.
C.

Failure to Provide Records or Access
Failure to provide access to the insured commodities on the farm, maintain or provide any
required records, authorize access to the records maintained by third parties, or assist in
obtaining all such records will result in a determination that no indemnity is due for the policy
year for which the failure occurred.

Document Origination
If original insurance documents are required by RMA but are unavailable, a photocopy, fax copy,
carbon copy or electronic form with electronic authorized signature of an original insurance document
may be used if certified by the AIP. The copy must be marked or stamped “Certified True Copy,”
signed, and dated by the AIP’s authorized representative.
A certified true copy must be accompanied by a memorandum explaining why a copy is being
submitted instead of the original document.

October 2022

FCIC-18160-1

Duplicate WFRP Policies
Duplicate WFRP policies are not allowed. AIPs must use the PHTS to determine if more than one WFRP
policy is in force for the same person. If more than one WFRP policy is in force for the same person,
the policy with the earliest date of application will remain in force and all other WFRP policies will be
canceled. The insured may be subject to the fraud provisions of the WFRP policy if the AIP determines
duplicate WFRP policies exists and this was intentional.
RMA will edit to ensure that duplicate WFRP policies are not in force.

Tax Years
A person must calculate and report taxable revenue to the IRS on a tax year basis. The calendar year is
the most common tax year used but some persons use a fiscal year as their tax year. IRS also allows a
52-53-week tax year, which is a fiscal year tax year that varies from 52-53 weeks and may not end on
the last day of a month. For WFRP purposes a 52-53-week tax year is considered a 12-month fiscal
year.
A person will not be considered a qualifying person for the policy year if the tax year corresponding to
the insurance period will be a short tax year. If a person has any short tax years in their whole-farm
history period or if their lag year is a short tax year, refer to Subparagraph 21(2)(a).
The person’s tax year, calendar or fiscal, is used for WFRP accounting purposes. The WFRP policy year
is designated by the calendar year that begins after the CCD (for late fiscal year filers, the policy year
will differ from the tax year insured under this policy).
For accounting purposes, the terms beginning and ending inventories, and beginning and ending
accounts receivable, are synonymous with the beginning and ending dates for the IRS tax year. ***

Accounting Methods
(1)

Persons using the cash accounting method generally report revenue in the tax year it is
received and deduct expenses in the tax year they are paid, even if it is not the same year when
they were incurred. Refer to Exhibit 2 for the definition of cash accounting method.

(2)

Persons using the accrual accounting method generally report revenue in the tax year it is
earned, whether it has been received yet or not, and deduct expenses in the tax year incurred,
regardless of whether the expenses are paid yet. Accrual accounting allows the person to
match revenue to the year in which revenue was earned. ***
Under the WFRP policy, including the Micro Farm Provisions, coverage is for a loss of revenue
that insureds expect to earn or will obtain from commodities they produce or purchase for
resale during the insurance period. The accrual accounting method, using the Inventory
Report(s) and Accounts Receivable Report (if applicable), is used to determine what has been
produced during the insurance period only. For the purposes of the whole-farm history period,
allowable revenue, and post-production expenses (if applicable) will not be adjusted using the
accrual accounting method.

October 2022

FCIC-18160-1

Accounting Methods (Continued)
Example:

8-20

A commodity has matured to the extent it is regarded as saleable at established
markets and the revenue from the commodity can be determined with
reasonable accuracy. The revenue for the commodity is included in the tax year
the commodity reached this level of maturity, regardless of whether revenue
from the commodity was received in that tax year or the next tax year.

(Reserved)

October 2022

FCIC-18160-1

PART 2: WFRP POLICY INFORMATION
21

Eligibility
(1)

To be considered eligible for a WFRP policy, the insured must:
(a)

meet the qualifying person criteria provided in the WFRP policy;

(b)

be eligible for crop insurance under 7 C.F.R. part 400, subpart U;

(c)

have filed a United States Federal income tax return, including farm tax forms, for each
of the 5 years in their whole-farm history period for the same tax entity and farm
operation as the insured person for the policy year unless one of the following applies:
(i)

the tax entity (taxpayer identification number) changed;

(ii)

the insured stopped farming as an individual and now farms as a tax entity other
than an individual;

(iii)

the insured formed a successor farming operation that is a different tax entity
but is basically the same operation;

(iv)

the insured purchased, inherited, or leased another person’s farm operation and
the use of the other person’s records is approved in accordance with section
16(g) of the policy;

(v)

the insured is a qualifying person that is not required to file a United States
Federal income tax return (e.g., a tribal entity):

(vi)

October 2022

(A)

To be eligible for insurance under this policy the insured must have filed
reports with a disinterested third-party entity supported by verifiable
records that the AIP agrees are sufficient to develop a Substitute
Schedule F for each year in the whole-farm history period; and

(B)

The reports used to develop the Substitute Schedule F will be considered
the farm tax forms under this policy;

the insured did not file farm tax forms or report farm revenue for a tax year due
to circumstances beyond their control (e.g., illness that prevented the insured
from farming for the year):
(A)

The insured must provide documentation acceptable to the AIP
explaining the circumstance for the missing year;

(B)

The insured may only have one year in their whole-farm history period in
which they did not file farm tax forms;

(C)

The insured must have filed farm tax forms in the first year of their
whole-farm history period, unless they are a carryover insured; and
FCIC-18160-1

Eligibility (Continued)
(D)
(vii)

the insured qualifies as a BFR or VFR or would have qualified as a BFR or VFR in
the previous policy year, and they have fewer than five years of farm tax forms in
their whole farm history period:
(A)

(B)

(d)

(2)

The insured must have earned farm revenue during their lag year; or

The insured, if qualified as a:
1

BFR or VFR, must have at least three consecutive years of farm
tax records in their whole-farm history period;

BFR or VFR in the previous policy year, must have at least four
consecutive years of farm tax forms in their whole-farm history
period; and

The insured must have earned farm revenue during their lag year.

Example 1:

A producer qualifies as a BFR in the 2023 policy year. To be
eligible for a 2023 WFRP policy, the producer must have farm tax
records for 2019, 2020, and 2021. The producer must have also
earned farm revenue in 2022.

Example 2:

A producer would have qualified as a VFR in the 2022 policy year.
To be eligible for a 2023 WFRP policy, the producer must have
farm tax records for 2018, 2019, 2020, and 2021. The producer
must have also earned farm revenue in 2022.

have a Schedule F, or Substitute Schedule F that covers 100 percent of their farm
operation. A tax entity which reports a fractional share of farming activity conducted by
a partnership, corporation or any other “joint venture” does not qualify for WFRP
coverage. However, a tax entity may still qualify for WFRP coverage on a fractional
share of a commodity in which they have an insurable interest.

The following persons will not be eligible for WFRP.
(a)

Persons whose tax year corresponding to the insurance period will be a short tax year;
If the applicant has a short-tax year(s) in their whole-farm history or their lag year is a
short-tax year, they are not ineligible for coverage. Refer to Subparagraph 46(1).

(b)

Individuals less than 18 years of age where legal majority has not been conferred by a
court:
Exception:
(i)

October 2022

Individuals less than 18 years of age where legal majority has not been
conferred by a court may be eligible for WFRP insurance if:

the individual provides evidence an insurable share exists;
FCIC-18160-1

Eligibility (Continued)
(ii)

a written statement describing the farm operation and insurable share is
provided;

(iii)

a court-appointed guardian or parent co-signs the application; and

(iv)

the court-appointed guardian or parent guarantees payment of the annual
premium.

When a minor reaches 18 years of age, or is conferred legal majority by a court, and is
competent to enter a legally binding contract, their existing WFRP policy is dissolved and
a new application is required.
(3)

A farm operation is ineligible for WFRP insurance, and no coverage will be provided when:
(a)

at SCD the insured revenue for the policy year is greater than $17 million based on the
IFOR;

(b)

the commodity count as determined using the IFOR is equal to one during the insurance
period; and
(i)

Potatoes are the only commodity with expected revenue that equals or exceeds
the qualifying revenue threshold; or

(ii)

Revenue protection is available for the commodity with expected revenue equal
to or greater than the qualifying revenue threshold through another plan of
insurance offered under the authority of the Act. Refer to Paragraph 41.

(c)

CAT coverage is elected through another plan of insurance offered under the authority
of the Act that could provide coverage during the insurance period for any insurable
commodity whether acreage is planted or not; or

(d)

the farm operation includes any production of or revenue from controlled substances
(refer to Paragraph 126 for controlled substance and 149 regarding Industrial Hemp).
Note:

(4)

October 2022

RMA is precluded from offering insurance for controlled substances
under WFRP by the provision’s statute and regulations, including the
Food Security Act of 1985. Commercial production of any controlled
substances will cause the producer’s farm operation to be ineligible for
WFRP.

Entities that are considered to be pass-through entities by the IRS may only insure the
allowable revenue from commodities if the entity is the originating entity that produced the
commodity. Owners of a pass-through entity that are not the originating entity may not insure
pass-through revenue or loss under WFRP. Pass-through revenue can only be insured by the
originating entity because the originating entity reports the revenue and expenses to IRS and
maintains the supporting documents required to participate in WFRP.
FCIC-18160-1

Eligibility (Continued)
(5)

In addition to subparagraphs 21(1), (2), (3)(d), and (4), to be considered eligible for the Micro
Farm Provisions, the insured must:
(a)

have at least three years of consecutive tax records immediately preceding the policy
year, including the lag year;
If the insured has not filed farm tax forms with the IRS for the lag year, they must
provide a completed Substitute Schedule F Worksheet and Allowable Revenue
Worksheet reflecting the revenue earned by their farm operation during that tax year.

(b)

at SCD, have an approved revenue of $350,000 or less for their first year of coverage or
$400,000 or less if they are a carryover insured;

(c)

not be a vertically integrated operation; and

(d)

not have any commodity produced on their farm operation insured by another policy
issued under the authority of the Act, including WFRP.

Pre-Acceptance Inspections
A PAW (refer to the CIH for procedures and the DSSH for form standards) is required each year before
the beginning of the insurance period for all commodities identified as a perennial on the AD or for any
perennial commodity grown on a farm operation covered under the Micro Farm Provisions. For
carryover insureds, pre-acceptance inspections are required if the policy was transferred and
documentation required by Subparagraph 23(8) was not provided by the ceding AIP.
A PAIR is required when the insured answers “YES” to the PAW question, “Has Damage (e.g., Disease,
Hail, Freeze) Occurred to Trees/Vines/Bushes/Bog that Will Reduce the Insured Crop’s Production from
Previous Crop Years?” If it is determined that a tree disease is present prior to insurance attaching, any
loss of revenue due to such disease will be considered an uninsured cause of loss. The AIP may submit
an RO determined yield request to obtain an accurate yield for the IFOR.
For the first year of insurance, a pre-acceptance inspection and applicable inspection report (i.e., PAIR)
for the commodity (refer to CIH for procedures) must be completed before accepting an application if
any insured commodity is damaged prior to the application being submitted. The expected revenue on
the IFOR must be reduced to reflect the reduced revenue caused by the damage occurring before
acceptance of the application.
If perennial commodities with production cycles exceeding 12 months are damaged, the expected
revenue may be reduced for two or more WFRP or Micro Farm policy years and may require additional
underwriting to avoid paying uninsured losses that occurred prior to the date that coverage initially
began.

Application
(1)

October 2022

An application is required. Before accepting the application, AIPs must ensure the application:

FCIC-18160-1

Application (Continued)
(a)

is for a qualifying person;

(b)

contains all required information according to the WFRP policy and the Micro Farm
Provisions (if applicable);

(c)

the county listed should be the county where most of the total expected revenue is
expected to be earned;
(i)

If no county is expected to provide most of the total expected revenue, the
county listed should be the county with the highest amount of expected
revenue.

(ii)

Regardless of the county listed, the county with the highest expected revenue at
the time the RFOR is submitted will be used for rating purpose.

(iii)

Document the county change on the RFOR. Refer to Exhibit 8.

(d)

is for the same person as the person that filed Federal income tax returns with the IRS
for the tax year; and

(e)

is signed by the person to be insured or an authorized representative of that person.

The application must be rejected if all requirements in the policy for acceptance are not met. If
an application is rejected, the original application and a letter explaining why the application
was rejected must be sent to the applicant.
(2)

The insurance period may begin prior to the SCD and damage to commodities may occur prior
to insurance attaching. If damage has occurred, an inspection must be performed prior to
acceptance of the application. Refer to Paragraph 22 for information about pre-acceptance
inspections.

(3)

Completed and signed applications for WFRP must be submitted on or before the SCD for the
producer’s tax filer type. If the SCD falls on a Saturday, Sunday, or Federal holiday, the SCD is
extended to the next business day.

October 2022

Example for Calendar Year Filer:

A producer’s tax year is January 1, 2023 – December
31, 2023. The producer’s application and all applicable
forms must be submitted on or prior to the SCD that
falls in 2023.

Example for an Early Fiscal Year Filer:

A producer’s tax year is August 1, 2023 – July 31, 2024.
The producer’s application and all applicable forms
must be submitted on or prior to the SCD that falls in
2023.

FCIC-18160-1

Application (Continued)
Example for a Late Fiscal Year Filer:

A producer’s tax year is September 1, 2022 – August
31, 2023. The producer’s application and all applicable
forms must be submitted on or prior to November 20,
2022, SCD for the 2023 policy year.

(4)

The insured must provide information to the AIP regarding insurance obtained from any other
AIP or from any FSA office (e.g., NAP) on commodities covered by WFRP. The information
provided must include the date such insurance was obtained.

(5)

To transfer a policy from one AIP to another, the insured must request a transfer in writing on
or before the cancellation date. The insured must complete and submit a Policy
Transfer/Application to the assuming AIP, or the assuming AIP must complete and sign, and
have the insured sign, a Request to Transfer a Policy including the ceding AIP’s policy number
for the policy being transferred.

(6)

If a Policy Transfer/Application is not used, an application must be completed and signed by the
insured and the assuming AIP indicating the crop was insured in the previous policy year. The
assuming AIP must, within 45 days after the applicable cancellation date, notify the ceding AIP
when the transfer has been accepted and a new policy has been issued.

(7)

An insured may transfer a policy only once per insurance period between the AIPs. A transfer
within an AIP from one policy issuing company to another is not considered a transfer for this
purpose.

(8)

The assuming AIP should notify the insured the policy will be terminated if the insured is
indebted to the ceding AIP.

(9)

All of the following must be transferred when a policy is transferred to a different AIP or agent.
(a)

Revenue history (if applicable), including copies of farm tax forms. ***

(b)

Copy of the current year’s FOR.

(c)

Copy of the PAW, if applicable.

(d)

Copy of the most recent year’s PAIR, if applicable.

(10)

AIPs are required to transmit premium, loss, and revenue data to RMA. RMA maintains this
data in its databases.

(11)

For the initial policy year, the AIP will notify the insured if the whole-farm historic average
revenue determined to be correct is less than 95 percent of the whole-farm historic average
revenue stated on the WFHR submitted by the insured. If the AIP provides the insured such
notice:
(a)

October 2022

the insured may submit a written request for reconsideration;

FCIC-18160-1

Application (Continued)
(b)

such requests must be made not later than 30 days after the date the AIP provided such
notice; and

(c)

if the insured does not request reconsideration, the AIP will revise the insured’s WFHR
to reflect the amount of allowable revenue the AIP determines to be correct for each
year in the insured’s whole-farm history period. ***

(12)

The WFRP policy may not be cancelled during the first year. The insured or the AIP may cancel
a WFRP policy for any policy year following the first year by giving a signed notice to the other
party on or before the cancellation date. A request made by the insured to cancel the policy
after the cancellation date will be effective the following policy year.

(13)

Notwithstanding Subparagraph 23(12) above, if the insured is a carryover insured, the AIP will
cancel their policy, effective as of the cancellation date, if the AIP does not receive the insured’s
completed WFHR and IFOR as required under section 15 of the WFRP policy on or before the
SCD or the insured elects coverage under the Micro Farm Provisions for the current policy year.

(14)

When an insured changes person type, such as changing from an individual to a corporation, a
new application must be submitted by the new person on or before the SCD. Coverage will
continue until the end of the policy year when a change in person type occurs after insurance
has attached for the year. However, the policy will be automatically cancelled as of the
cancellation date, and a new application and associated documents must be submitted by the
applicable SCD to continue coverage under WFRP.
The insured must be the same person as the person designated on the United States Income
Tax form for the year of insurance and all the years in the whole-farm history period.

Vertically Integrated and Related Tax Entity
If the insured’s farm operation is vertically integrated, or the insured owns or has interest in related tax
entities, the insured must clearly identify and explain the relationship between the entities at the time
the application is filed. The AIP must:
(1)

Assure that expected values used in the underwriting for these operations are similar to
operations that are not vertically integrated.

(2)

Assure that post-production expense amounts that are adjusted out of revenue to calculate
approved revenue amounts are similar to expenses that other parties in the area would incur.
Refer to the CIH for acceptable record requirements for vertically integrated entities. The
Market Certification is not applicable to WFRP and Micro Farm.

25-40 (Reserved)

October 2022

FCIC-18160-1

PART 3: COVERAGE AND REPORTS
Section 1 Coverage Information and Required Reports
41

Basic Information and Commodity Count
(1)

Only the insured’s allowable revenue is insurable. Insurance does not extend to any person,
including any person having a share in the revenue from commodities produced or purchased
for resale during the insurance period.

(2)

The commodity count is based on the number of commodities on the farm operation, or
intended commodities the insured plans to have on their farm operation, with expected
revenue equal to or greater than their qualifying revenue threshold and is used to determine:

(3)

(a)

the highest coverage level the insured’s farm operation qualifies for;

(b)

the diversification discount the insured will receive;

(c)

eligibility for WFRP coverage if the insured raises potatoes or has commodities with
other available revenue coverage; and

(d)

the insured’s subsidy amount.

The qualifying revenue threshold is calculated as follows:
(a)

Determine the number of commodities on the farm or intended commodities the
insured plans to produce on their farm operation. Each separate commodity code
(excluding the combined direct marketing commodity code) on the FOR is counted once
to determine the number of commodities, regardless of the number of times the
commodity code is used;
Example:

(4)

(b)

divide 1.0 by the result of (a) and round the result to three decimals;

(c)

multiply the result of (b) by 0.333 and round the result to three decimals; and

(d)

multiply the result of (c) by the Total Expected Revenue on the FOR (excluding the
combined direct marketing commodity code) and round the result to whole dollars to
determine the qualifying revenue threshold.

The commodity count is calculated as follows:
(a)

October 2022

If two lines are present for cattle with significantly different prices, such
as for heifers and steers, and the commodity codes are the same, the
expected revenues from these two lines are added together and treated
as one commodity.

sum the expected revenue for each individual commodity code;

FCIC-18160-1

Basic Information and Commodity Count (Continued)
(b)

determine the number of the commodities or intended commodities in (a) that have
expected revenue equal to or greater than the qualifying revenue threshold. If one of
these commodities is combined direct marketing, count combined direct marketing as
two commodities for the purpose of this determination;

(c)

sum the expected revenue amounts from the result of (b) and subtract the result from
the Total Expected Revenue;

(d)

divide the result of (c) by the qualifying revenue threshold to determine the number of
additional commodities to count (use whole numbers and do not round); and

(e)

add the result of (b) to the result of (d) to determine the commodity count.

Example 1:

At SCD, the applicant reported six (6) commodities on the IFOR (corn, mums,
geraniums, pigs, carrots, cucumbers, and squash) that will be produced with a
Total Expected Revenue of $170,250. Mums and geraniums have the same
commodity code so the expected revenue for each are added together and
count as one commodity.
The expected revenue from each of at least three of the commodities must be
equal to or greater than the qualifying revenue threshold ($9,534) for the
applicant to be eligible for a coverage level above 75 percent (as shown in SP).
Calculation:

[{(1.0 ÷ 6 commodities) × 0.333 = .056} × $170,250 = $9,534]
Round to 3 decimals after each calculation.

The expected revenue for each commodity is:
$93,750 for corn;
$9,500 ($9,000 + $500) for mums and geraniums;
$50,000 for pigs;
$9,000 for carrots;
$6,000 for cucumbers; and
$2,000 for squash.
Only two commodities (corn and pigs) individually have expected revenue equal
to or greater than the qualifying revenue threshold ($9,534). However, the
applicant can combine the expected revenue of any of the other commodities
(nursery (mums and geraniums)), carrots, cucumbers, and squash) to meet the
qualifying revenue threshold. The combined revenue for the nursery ($9,500),
carrots ($9,000), cucumbers ($6,000), and squash ($2,000) is $26,500. $26,500 ÷
$9,534 = 2.8 (no rounding) resulting in an additional 2 counted commodities
bringing the commodity count to 4. The applicant is eligible for a coverage level
above 75 percent (as shown in SP).

October 2022

FCIC-18160-1

Basic Information and Commodity Count (Continued)
Example 2:

At SCD, the applicant reported three (3) commodities on the IFOR (corn, pigs,
and combined direct marketing commodities) that will be produced with a Total
Expected Revenue of $160,750. The combined direct marketing commodity
code revenue ($17,000) is excluded from the qualifying revenue threshold
calculation.
Calculation:

[{(1.0 ÷ 2 commodities) × 0.333 = .167} × $143,750 = $24,006]
Round to 3 decimals after each calculation.

The expected revenue for each commodity is:
$93,750 for corn;
$50,000 for pigs; and
$17,000 for combined direct marketing commodities;
Only two (2) commodities (corn and pigs) individually have expected revenue
equal to or greater than the qualifying revenue threshold ($24,006). However,
the insured has reported the combined direct marketing commodity code that
counts as two (commodities). Therefore, the insured’s commodity count is equal
to four (4).
(5)

A farm operation producing multiple commodities with DIFFERENT commodity codes is
ineligible for WFRP if:
(a)

The farm operation qualifies for only ONE commodity using the commodity count
calculation in the WFRP policy; and

(b)

The commodity listed on the FOR with the highest expected revenue has another FCIC
Revenue plan of insurance available for the county listed on the WFRP application.
Note:

(6)

October 2022

In cases when another FCIC Revenue plan of insurance is available, but
the commodity type will always have a harvest price equal to the
projected price where only yield losses are covered, such as, but not
limited to, specific dry bean or pea types and corn silage, revenue
coverage will not be considered available for WFRP purposes and the
farm operation may be eligible for WFRP insurance.

A farm operation producing a commodity that is listed on the FOR using multiple lines with the
same commodity code is ineligible for WFRP if:
(a)

the farm operation qualifies for only one commodity using the commodity count
calculation in the WFRP policy; and

(b)

the commodity listed on the FOR with highest expected revenue (within the common
commodity code) has another FCIC Revenue plan of insurance available for the county
listed on the WFRP application.

FCIC-18160-1

Basic Information and Commodity Count (Continued)
Note:

October 2022

In cases when another FCIC Revenue plan of insurance is available, but
the commodity type will always have a harvest price equal to the
projected price where only yield losses are available, such as, but not
limited to, specific dry bean or pea types and corn silage, revenue
coverage will not be considered available for WFRP purposes and the
farm operation may be eligible for WFRP insurance.

Example 1:

A farm operation in Carter County, Montana produces wheat (00100)
with expected revenue of $100,000, alfalfa (003301) with expected
revenue of $10,000, and hay (003308) with expected revenue of $2,000.
The farm operation qualifies for only one commodity based on the
commodity count calculation. A Revenue Protection policy is available in
Carter County, Montana for wheat (the commodity listed on the FOR
with the highest expected revenue); therefore, this farm operation is
ineligible for a WFRP policy.

Example 2:

A farm operation in St. Clair County, Michigan produces two types of dry
beans (004700); black beans with expected revenue of $100,000, and
small red beans with expected revenue of $10,000; and hay (003308)
with expected revenue of $2,000. The farm operation qualifies for only
one commodity based on the commodity count calculation. A Revenue
Protection policy is available in this county for black beans (the
commodity listed on the FOR with the highest expected revenue), so this
farm operation is ineligible for a WFRP policy.

Example 3:

A farm operation in St. Clair County, Michigan produces three types of
dry beans (004700); great northern beans with expected revenue of
$100,000, small red beans with expected revenue of $10,000, and black
beans with expected revenue of $2,000. The farm operation qualifies for
only one commodity based on the commodity count calculation. Great
northern beans are the largest revenue producing commodity on this
farm and while a Revenue Protection policy is available in this county for
most dry bean types, revenue protection is not available in this county
for great northern beans (Refer to note above in 41(B)(4)(b)), so the farm
is eligible for a WFRP policy.

Note:

There are several type codes for dry beans and dry peas under the Dry
Bean Revenue and Dry Pea Revenue insurance plans; however, the
commodity code for most dry beans under WFRP is 004700 and for some
dry peas under WFRP is 006700. Dry beans and dry peas are examples of
commodities that the type with the highest expected revenue within the
multiple types listed on the FOR will be used for determination of WFRP
eligibility.

FCIC-18160-1

Basic Information and Commodity Count (Continued)
Example 4:

(7)

If the AIP verifies a commodity reported on an insured’s IFOR was not established or was
destroyed due to an insured COL and replaced with another commodity, the insured’s
commodity count will not be less than the commodity count calculated using the IFOR. A
timely NOL must be submitted to allow the AIP the opportunity to verify there was an insured
COL.
Example:

A farm operation in Pottawatomie County, Kansas has expected revenue
of $100,000 from soybeans (008100) for the upcoming year and has a
commodity count of one. Because Revenue Protection insurance is
available for soybeans in this county, the farm is ineligible for WFRP.

An insured submits an IFOR with three intended commodities and expected
values, corn ($25,000), soybeans ($50,000), and wheat ($25,000). Due to an
insured COL, the insured was unable to plant corn, but was able to plant
additional soybeans as a replacement commodity at a later date. Due to the
required adjustment on the RFOR (see Paragraph 49), there are now two
commodities and values submitted, soybeans ($75,000) and wheat ($25,000).
The commodity count will remain at three due to an insured COL reducing it at
the time the RFOR is submitted.

(8)

For Micro Farm, subparagraphs 41(3) through (7) are not applicable. Refer to Paragraph 161.

(9)

Refer to the WFRP policy for administrative fee amount and payment date. The procedures in
the CIH regarding administrative fee waivers and third-party prohibitions apply.

Coverage Levels
(1)

Coverage levels offered under WFRP are provided on the AD. Insureds:
(a)

may elect any amount of coverage they are eligible to receive;

(b)

will have only one coverage level per policy;

(c)

must have a commodity count as calculated in Paragraph 41 that is the minimum
number of commodities required for the coverage level selected, as provided in the AD;

(d)

may change the coverage level, if requested in writing on or before the SCD; and
Exception:

(e)

October 2022

Insureds cannot increase their coverage level if any cause of loss that
would reduce the allowable revenue for the policy year is evident prior to
the request to change coverage levels.

must select a buy-up coverage level for the any other Federally reinsured policy
purchased, unless otherwise stated in the SP, when any of the commodities insured
under the WFRP policy will also be insured under another FCIC plan of insurance. This is
not applicable to commodities insured under Micro Farm Provisions because coverage
provided by another policy authorized under the Act is not allowed.
FCIC-18160-1

Coverage Levels (Continued)
Exception:

(2)

Buy-up coverage is not required for tree crops when a Federally reinsured
tree policy is obtained (i.e., Citrus Trees, Hawaiian Tropical Trees). WFRP
insures only the revenue from the fruit of trees, not the trees themselves.

The AIP must reduce the insured’s coverage level when the insured does not:
(a)

qualify for the coverage level they selected; or

(b)

meet coverage level requirements throughout the entire insurance period, unless due to
an insured cause of loss.

If a reduction in coverage level is necessary, the insured’s coverage level must be reduced to
the highest level for which the insured qualifies. All reductions in coverage must include the
signature of the insured indicating their understanding of the changes to their guarantee.
43

Replant Payments
(1)

A replant payment may be allowed if specified in the AD. Refer to Paragraph 95.

(2)

For Micro Farm, replant payments are not allowed.

Allowable Revenue and Allowable Revenue Worksheet
(1)

On or before the SCD, an Allowable Revenue Worksheet must be completed for each year in
the whole-farm history period and the lag year for qualifying persons with less than five years in
their whole-farm history period. Refer to Exhibits 3 and 14 for required elements with
descriptions and examples of the Allowable Revenue Worksheet.

(2)

Allowable revenue for WFRP purposes is limited to the revenue from:
(a)

the sales of animals, and other commodities you purchased for resale, less the cost or
other basis of such animals or other commodities (line 1c of Schedule F) (include
revenue from CCC loans forfeited);

(b)

the sales of animals, produce, grains and other commodities you raised. (Line 2 of
Schedule F.);

(c)

the taxable amount of total cooperative distributions (line 3b of Schedule F) (Include
only those directly related to the sale of insured commodities and supported by
verifiable records, (e.g., distributions for corn, not fertilizer); and
For claim purposes, only include cooperative distributions related to the sale of
commodities produced in the insurance period.

(d)

October 2022

other revenue reported on line 8 of Schedule F. Exclude Federal and State gasoline or
fuel tax credits or refunds if included on this line. Include all revenue directly related to
the production of commodities and supported by verifiable records that the IRS requires
you to report, including, but not limited to:
FCIC-18160-1

Allowable Revenue and Allowable Revenue Worksheet (Continued)

(e)

(i)

Revenue from bartering. (This amount will be determined in accordance with
IRS rules.); and

(ii)

Payments from buyers of commodities for bypassed acreage (These are
payments made to the insured in accordance with a marketing contract between
the insured and a buyer for not harvesting the insured’s crop).

For Micro Farm, post-production operations and value added may be included. Refer to
Paragraph 161.

(3)

Completion of the Allowable Revenue Worksheet is required to show which commodities are
allowed from the farm tax forms and what adjustments are necessary.

(4)

The AIP must not accept any revenue amount or an adjustment to the revenue amount if the
amount reported for WFRP purposes cannot be verified using verifiable records or direct
marketing sales records.

(5)

The following are commonly used IRS tax forms used to report farm revenue and expenses. If
forms other than the Schedule F are used, a Substitute Schedule F must be completed. The
Substitute Schedule F must result in the same revenue as the alternative tax form used and
records must be available to support the Substitute Schedule F to the AIP’s satisfaction.

(6)

October 2022

(a)

Schedule F (Form 1040), Profit or Loss from Farming. (Refer to Exhibit 12 for a
completed example.)

(b)

Schedule J (Form 1040), Income Averaging for Farmers and Fisherman.

(c)

Schedule D (Form 1040), Capital Gains and Losses.

(d)

Form 4835, Farm Rental Income and Expenses.

(e)

Form 1065, U.S. Return of Partnership Income.

(f)

Form 1120, U.S. Corporation Income Tax Return.

(g)

Form 1120-S, U.S. Tax Return for an S Corporation.

(h)

Form 1120-C. U.S. Income Tax Return for Cooperative Associations.

(i)

Form 4797, Sales of Business Property.

There are specific types of revenue that are reported on farm tax forms but are not considered
insurable revenue. These are listed in section 10 of the policy. These items also are directly
listed on the Schedule F tax form from the IRS. While such revenue is excluded from allowable
revenue and expected revenue, it may be included in RTC for claim purposes. Refer to
Paragraph 101 for information regarding adjustments to revenue for claims purposes.

FCIC-18160-1

Allowable Revenue and Allowable Revenue Worksheet (Continued)
(7)

All of the following must be excluded from the allowable revenue in each year of the wholefarm history period, expected revenue for the insurance period, and RTC for claims:
(a)

revenue from any post-production operations;
Exception:

(b)

revenue from value added to commodities, such as gift baskets and wine;
Exception:

(8)

October 2022

For Micro Farm, if revenue generated from post-production operations is
used when determining the whole-farm historical average and the
expected revenue, it must be included as RTC.

For Micro Farm, if revenue generated from value-added to commodities
is used when determining the whole-farm historical average and the
expected revenue, it must be included as RTC.

(c)

revenue from commodities in which the insured does not have an insurable interest;

(d)

revenue earned from custom hire or rental activities;

(e)

cooperative distributions that are not directly related to the sale of an insured
commodity (at claim time, use only those that are applicable to the policy year);

(f)

revenue earned as an animal contract grower;

(g)

revenue from wages, salaries, tips, cash rent, rental of equipment or livestock, or
supplies;

(h)

revenue from government agricultural programs, disaster payments, and replant
payments;

(i)

revenue from uninsurable commodities, such as, animals for show or sport, timber,
forest, forest products, controlled substances, and those commodities not grown in the
United States;

(j)

CCC loans repaid (except those repaid by a third-party buyer); and

(k)

revenue from sources other than insurable commodities, such as bottled water or
souvenir sales.

All of the following must also be excluded from the allowable revenue in each year of the
whole-farm history period and expected revenue for the insurance period. However, all the
following are included in RTC for claims:
(a)

net gain from commodity hedging or speculation;

(b)

value assigned for uninsured cause of loss or abandoned acreage;

(c)

accrual adjustments for beginning and ending accounts receivables and inventories;
FCIC-18160-1

Allowable Revenue and Allowable Revenue Worksheet (Continued)
(d)

crop insurance indemnities authorized under the Act and prevented planting payments
from other FCIC policies; and
Example:

(e)

any payments received from NAP or other insurance indemnities from policies not
authorized under the Act:
(i)

must be excluded from allowable revenue in each year of the whole-farm history
period, however;

(ii)

the portion of payments and indemnities that exceeds the insured’s deductible,
as determined in Paragraph 123, will be included as RTC for claims in the current
policy year.

(Reserved)

Whole-Farm History Report
(1)

Insured A has apples insured under WFRP and under a FCIC yield based
apple policy. Any indemnity under the yield-based apple policy is not
included in the allowable revenue however, it is included in RTC for
WFRP.

Insureds must provide a completed WFHR on or before the SCD for the policy year.
If the applicant has a short-tax year in their whole-farm history or their lag year is a short tax
year, they must resubmit their whole-farm history based on the calendar or fiscal year used for
the policy year within the history and the AIP may, at their discretion, and based on the
person’s resubmitted records, allow the applicant to obtain WFRP insurance.

(2)

The WFHR includes the:
(a)

October 2022

allowable revenue calculated on the Allowable Revenue Worksheet in Paragraphs 44 for
each year of the whole-farm history period; ***
Example 1:

The whole-farm history period for a calendar or early fiscal year filer for
the 2023 policy year is 2017, 2018, 2019, 2020, and 2021. Tax year 2022
is the lag year and is not included in the 2023 whole-farm history period,
except for a qualifying person with less than five years in their wholefarm history period.

Example 2:

The whole-farm history period for a late fiscal year filer for the 2023
policy year are tax years 2016, 2017, 2018, 2019, and 2020. Tax year
2021 is a lag year and is not included in the 2023 whole-farm history
period, except for a qualifying person with less than five years in their
whole-farm history period.
FCIC-18160-1

Whole-Farm History Report (Continued)
Example 3:

The whole-farm history period for a calendar or early fiscal year filer
under Micro Farm for the 2023 policy year with three years of tax records
is 2020, 2021, and 2022; with four years of tax records is 2019, 2020,
2021, and 2022; and with five years of tax records is 2018, 2019, 2020,
2021, and 2022.

(b)

all calculated average revenues, including indexed and with or without elected
insurance options, and expanded operation values (if applicable). Refer to Paragraph
71; and

(c)

highest of the average, indexed average (if applicable), revenue cup (if elected) or
expanded operation (if applicable) allowable revenue that is entered as the whole-farm
historic average revenues. ***

Refer to Exhibits 3 and 4 for required elements, descriptions of required elements, and an
example of a WFHR.
A copy of the applicant’s/insured’s tax form(s) for each year in the whole-farm history period
must be provided with the WFHR. If Substitute Schedule F forms are used, they must also be
provided at that time. An Allowable Revenue Worksheet will need to be completed for each
tax year. Refer to Paragraph 51 for more information about required farm tax forms and
verifiable information. ***
47

Use of a Different Person’s Tax Returns
(1)

An applicant/insured may use the tax records of another person to meet the requirement of
providing tax records for the years in the whole-farm history period if the requirements in the
policy are met.
The purchase, lease, or inheritance of a farm operation, by itself, is not sufficient for an
applicant/insured to use the tax returns of the person from whom they purchased, leased, or
inherited an operation. An AIP may approve an applicant/insured’s use of a different person’s
tax returns for the applicable years in the whole-farm history period if:

October 2022

(a)

the applicant/insured purchased, inherited, or leased at least 90 percent of the other
person’s farm operation, including the land and facilities (e.g., irrigation equipment and
systems, greenhouses, and other facilities);

(b)

for each year of the other person’s tax returns the applicant/insured use, the other
person:
(i)

Had an insurable interest in all commodities produced on the farm operation the
applicant/insured obtained;

(ii)

Filed Federal income tax returns for the revenue received from those
commodities; and
FCIC-18160-1

Use of a Different Person’s Tax Returns (Continued)
(iii)
(c)

(d)

(2)

Is willing to provide all records necessary under the policy including the Federal
income tax returns.

on or before the SCD, the applicant/insured submits to the AIP:
(i)

a written request to use the other person’s tax returns for the specific years;

(ii)

copy of the other person’s tax return for each year the applicant/insured uses;

(iii)

a completed and signed WFHR that represents the combination of the
applicant’s/insured’s allowable revenue, and the allowable revenue of the other
person for the applicable tax years; and ***

(iv)

verifiable documentation that:
(A)

at least 90 percent of the other person’s farm operation was obtained by
the applicant/insured and added to their farm operation;

(B)

the other person whose tax returns the applicant/insured wishes to use
had an insurable interest in all the commodities produced on the farm
operation the applicant/insured obtained; and

within 15 calendar days of a request by the AIP, the applicant/insured provides:
(i)

verifiable documentation that supports the income on the tax return(s) of the
other person; and ***

(ii)

verifiable documentation of all post-production operations related to the other
person’s farm operation for the tax years the applicant/insured uses.

The AIP may approve the use of a different person’s tax records only if:
(a)

all requirements in the policy and Subparagraph 47(1) above are met; and

(b)

obtaining another farm operation or the change in the person type was not done to
avoid any tax law or any program eligibility criteria, including evading the ineligibility for
program benefits under 7 C.F.R. part 400, subpart U.

(3)

The AIP must notify the applicant/insured whether the use of the different person’s tax records
is approved or denied within 15 business days after receiving all required information.

(4)

If the use of a different person’s tax returns is:
(a)

October 2022

approved, the applicant’s/insured’s allowable revenue and the other person’s allowable
revenue will be combined for the applicable year; or ***

FCIC-18160-1

Use of a Different Person’s Tax Returns (Continued)
(b)

denied, the applicant’s/insured’s WFHR and all other applicable reports will be modified
to reflect only the approved allowable revenue of the applicant/insured for each
applicable year. ***

Intended Farm Operation Report
(1)

The IFOR is the form on which the insured provides all required information regarding the
intended commodities they plan to produce during the insurance period and expect to earn or
will obtain revenue from during the insurance period. Refer to Exhibit 8 that includes an
example of an IFOR, RFOR, and FFOR.
Insureds must provide an IFOR to the AIP on or before the SCD for the policy year. Insureds
may submit an IFOR following the CCD of the current policy year. For example, the CCD for
2023 is August 31, 2022. An insured may submit an IFOR on or after September 1, 2022, for the
2023 policy year. If a carryover insured does not file an IFOR by the SCD, the policy will be
cancelled. Refer to Subparagraph 23(13).

(2)

The IFOR will include a list of all intended commodities the insured plans to produce during the
year. The following apply to the IFOR:
(a)

Commodity and rate codes can be found in the AD. If the AIPs find a commodity is
missing from a county list, they should use the most applicable “Other” commodity code
such as, Other Fruits. If the commodity is widely grown, notify the RMA Regional Office
for their region.

(b)

The expected revenue for each intended commodity reported, with expected yields
reflecting the amount of production to be sold and expected values reflecting the
expected sale price from markets where the crop is normally sold. Refer to Exhibit 18.
The source of the expected value and expected yield must be documented on the
Expected Value and Yield Source Document Certification Worksheet. Refer to Exhibit 9.
For intended commodities that are not insured by another policy authorized under the
Act, the insured’s acreage, production, and revenue history (direct market commodities)
must be reported on the Yield and Revenue Report. Refer to Exhibit 10.

October 2022

(c)

Commodities that are direct marketed may be listed on the FOR under the combined
direct marketing commodity found in the AD. Refer to Paragraph 150.

(d)

If a marketing contract becomes effective after the IFOR is submitted, the expected
value shall be revised to reflect the price contained in the marketing contract for the
portion of production under contract.

(e)

For commodities harvested prior to 10 days after the AIP accepts the application in the
initial year, the expected yield must be the harvested yield.

(f)

Commodities produced on Native Sod must be listed on a separate line on the IFOR.
FCIC-18160-1

Intended Farm Operation Report (Continued)
(g)

Commodities with multiple rate codes must be listed on separate lines on the IFOR.
Also, commodities with multiple types, practices, shares, or that have different expected
values, regardless of whether there are separate rate codes, must be listed on multiple
lines on the IFOR. Expected values that are less than zero cannot be combined with
other lines of a commodity to achieve a weighted average for the commodity.

(h)

AIPs must monitor how commodity counts are calculated since the commodity count
forms the basis of the insurance.

(i)

Premium rating for WFRP is based on the commodities grown and the amount of
expected revenue for each commodity reported for the applicable rate code listed in the
AD. Premium rates are calculated for each individual farm and are based on the RFOR,
so it is important to report accurately. When commodities or amounts of commodities
change on a revised report (compared to the Intended Report), the approved revenue,
premium rate, and premium will change.

(j)

The Whole-Farm Historic Average Revenue from the WFHR are carried forward to the
IFOR. Total Expected Revenue from all commodities on the IFOR is summed. The
approved revenue is determined as the lesser of the Whole-Farm Historic Average
Revenue or the Total Expected Revenue from the IFOR. ***

(k)

The AIP identifies farm operations that are vertically integrated or has related
operations and if there are post-production expenses that were removed.

(l)

The AIP should note any condition or change that will affect the approved revenue
compared to the whole-farm historic average revenue, including but not limited to any
IRS reporting changes, such as a change in accounting methods, tax year, or person
type.

(m)

If the farm operation includes any revenue from controlled substances, the policy will be
void and no coverage will be provided. Refer to Subparagraph 21(3)(d) and Paragraphs
126, and 149 regarding industrial hemp.

(n)

The Total Expected Revenue (item 13E) on the IFOR should reflect only the amount of
revenue the insured can expect to earn or obtain from commodities produced to sell
during the insurance period and the insured’s share of the revenue for the commodity
on that line.
Example:

October 2022

The insured’s farm operation includes a .500 share of 7 acres of onions.
The Total Expected Revenue for the line will be multiplied by the
insured’s share: 4.0 tons × $150.00 = $600 × 7.0 acres = $4,200 × .500
share = $2,100 Total Expected Revenue

FCIC-18160-1

Intended Farm Operation Report (Continued)

Refer to Exhibit 8 for example of FOR submitted at SCD and revised during the insurance period.
(3)

The total number of acres of the same commodity planted and harvested more than once in
the insurance period must be reported on the IFOR.
Example:

(4)

The expected value provided on the IFOR for a commodity that was purchased for resale must
not include the cost, or other basis, of the commodity. Refer to Exhibit 18 for guidelines on
determining expected value.
Important:

(5)

Insured A intends to plant 10 acres of onions with a yield of 4 tons per acre for
one price and 2 tons per acre for a substantially different price. Production from
7 acres will be sold to a processor with an expected value of $150/ton, and the
remaining production from 3 acres will be sold in the fresh market with an
expected value of $190/ton. The onions must be reported on separate lines on
the IFOR due to the substantially different expected values of the production.

Any condition or change on the farm that has occurred since the Whole-Farm history period
must be reported on the FOR. Such conditions and changes include, but are not limited to:
(a)

October 2022

If the insured derives more than 50 percent of total expected revenue from
commodities purchased for resale, they are not eligible for WFRP insurance.

Each intended commodity the insured plans to produce or purchase for resale or already has
produced or purchased for resale that the insured can expect to earn or will obtain revenue
from during the insurance period must be listed on a separate line on the IFOR. If an intended
commodity has a different rate code, expected values, or the insured’s share is less than 100
percent, the AIP must list it on separate lines on the IFOR.
Example:

(6)

Insured A intends to plant and harvest lettuce on the same five acres two
separate times during the insurance period. This is a normal practice for the
insured and is considered a GFP for the area. Insured A would report they intend
to plant 10 acres of lettuce on the FOR.

change in the size of the farm operation;
FCIC-18160-1

Intended Farm Operation Report (Continued)
(b)

removal or planting of perennial commodities/trees;

(c)

land renovations, such as bog renovation;

(d)

changes in farming practices, including organic transitional or organic;

(e)

changes in farm management or accounting methods;

(f)

change in tax year;

(g)

change in person type, such as changing from a partnership to a corporation;

(h)

change in the commodities produced or purchased for resale;

(i)

change in the share of commodities produced or purchased for resale;

(j)

changing marketing methods or markets, such as wholesale, retail, or direct; and

(k)

damage to commodities that occurred prior to beginning of the insurance period.

Any of the above changes could result in changes to the expected revenue for the insurance
period and must be reflected on the FOR.
(7)

If the IFOR only includes intended revenue from perennial commodities already established on
the farm operation and no changes are anticipated, the insured may submit their RFOR at the
time their IFOR is submitted.
Important:

(8)
49

The insured is still required to report any changes that occur within the
insurance period.

Under the Micro Farm Provisions, intended commodities can only be listed on the FOR under
the micro farm commodity code found in the AD.

Revised Farm Operation Report
(1)

(2)

October 2022

A RFOR must be submitted during the insurance period, similar to an acreage report, to reflect
the activities that actually occurred on the farm. The RFOR must be submitted:
(a)

no later than July 15 following the SCD, unless otherwise specified in the SP; or

(b)

within 30 days of the insured making changes to the commodities grown on the farm or
purchased for resale after the RFOR is completed. The RFOR may only be revised later,
with AIP approval and must exclude any changes to revenue resulting from a covered
cause of loss.

If the insured’s IFOR includes only expected revenue from perennial commodities already
established on their farm operation and no changes are anticipated, the insured may submit
their RFOR at the time the IFOR is submitted.
FCIC-18160-1

Revised Farm Operation Report (Continued)
Important:

The insured is still required to report any changes that occur within the
insurance period in accordance with the section 15 of the policy and item 1(b)
above.

(3)

If the insured fails to timely submit their RFOR, or the AIP is unable to verify the information
that was submitted, the AIP will deny any indemnity, or replant payment and the insured will
still be required to pay the premium due. The AIP must use the information from the IFOR as
the RFOR for premium calculation purposes.

(4)

The purpose of a RFOR is to report information about changes to the farm operation after the
IFOR was submitted. The RFOR must include:
(a)

intended commodities that were actually planted or purchased for resale;

(b)

intended commodities that were planned to be produced or purchased for resale but
will not be produced or purchased for resale, such as in the case of prevented planting,
and the reason they were not produced or purchased for resale;

(c)

commodities produced or purchased for resale that were not intended to be produced
or purchased for resale when the IFOR was submitted;

(d)

damaged intended commodities, and the reason for the damage;

(e)

commodities produced to replace commodities damaged or prevented from being
produced; and

(f)

circumstances that will affect the expected revenue, such as changes in production or
irrigation practices. Expected values cannot be revised after the IFOR is submitted.

(5)

If a commodity is added to the RFOR that was not listed on the IFOR, the expected revenue
should be based on expected yields reflecting the amount of production to be sold and
expected values reflecting the expected sale price from markets where the crop will be sold.
Expected values and yields will be determined as of the date the RFOR is submitted. Refer to
Exhibit 18. The source of the expected value and yield must be documented on the Expected
Value and Yield Source Document Certification Worksheet. Refer to Exhibit 9.

(6)

If a commodity is added to the RFOR that was not listed on the IFOR or the RFOR by the RFOR
date, and a late revision is allowed by the AIP, the expected revenue should be based on
expected yields reflecting the amount of salable production and expected values reflecting the
expected sale price by markets where the crop will be sold. Expected values and expected
yields will be calculated as of the date of planting of the added commodity.

(7)

The expected quantity and revenue of intended commodities the insured plans to produce
during the insurance period, but that have not yet been produced by the date the RFOR is
initially submitted (on or before the required reporting date as stated in Subparagraph 49(1)
above), are identified on the IFOR. If those intended commodities are actually produced, these
numbers will be carried forward to the RFOR.

October 2022

FCIC-18160-1

Revised Farm Operation Report (Continued)
(8)

If a marketing contract becomes effective after the RFOR is due, the expected value may be
revised to reflect the price contained in the marketing contract for the portion of production
under contract. Refer to Subparagraph 49(1)(b) for limitations on Revised Farm Operation
revisions.

(9)

The following provides instructions for determining the quantity and expected revenue to enter
on the RFOR. Refer to Exhibit 8 for example of FOR submitted at required reporting date and
revised during the insurance period. ***
(a)

IF an intended commodity on SCD is planted, produced, or purchased for resale, at the
time the RFOR is submitted AND no changes are made, and the intended report is still
correct as to what is being produced and what was purchased for resale THEN the
numbers pertaining to the quantity planted, produced, or purchased for resale and
expected revenue from the IFOR are carried forward to the RFOR. Refer to Example 1
below.

(b)

IF an intended commodity on SCD is not planted, produced, or purchased for resale at
the time the RFOR is submitted AND the insured still intends to plant, produce, or
purchase for resale, the same amount of the commodity in the insurance period THEN
the numbers pertaining to the quantity planted, produced, or purchased for resale and
expected revenue from the IFOR are carried forward to the RFOR. Refer to Example 1
below.

Example 1:

October 2022

A producer intends to produce 125 acres of corn and 100 acres of soybeans this
insurance period and submitted such on the IFOR. At Revised time the producer
has planted the 125 acres of corn and still intends to plant the 100 acres of
soybeans. The same quantity and expected revenue from the IFOR are carried
forward to the RFOR for both the corn and soybeans.

(c)

IF an intended commodity on SCD is not planted, produced, or purchased for resale at
the time the RFOR is submitted AND the insured does not intend to plant, produce, or
purchase for resale all of the commodity due to a farm management decision or an
uninsured cause of loss THEN Do not carry forward any information regarding the
commodity not planted, produced, or purchased for resale. Refer to Example 2 below.

(d)

IF an intended commodity on SCD is not planted, produced, or purchased for resale at
the time the RFOR is submitted AND the insured intends to plant, produce, or purchase
for resale only a portion of the commodity due to a farm management decision or an
uninsured cause of loss THEN:
FCIC-18160-1
34

Revised Farm Operation Report (Continued)

(e)

(i)

the actual quantity of the commodity to be planted, produced, or purchased for
resale is entered on the RFOR; and

(ii)

the expected revenue is calculated using the quantity from (i) and entered in the
Total Expected Revenue column on the RFOR. Refer to Example 2 below.

IF an intended commodity on SCD is planted, produced, or purchased for resale, at the
time the RFOR is submitted AND changes were made to the quantity planted, produced,
or purchased for resale due to farm management decisions THEN:
(i)

the actual quantity of the commodity to be planted, produced, or purchased for
resale is entered on the RFOR; and

(ii)

the expected revenue is calculated using the quantity from (i) and entered in the
Total Expected Revenue column on the RFOR. Refer to Example 2 below.

Example 2:

(f)

October 2022

A producer intends to produce 125 acres of corn, 100 acres of soybeans and 50
acres of wheat during this insurance period and submits such on the IFOR. At
Revised time the producer has not planted any corn and planted only 40 acres of
wheat due to a farm management decision. 50 acres of soybeans were not
planted due to a verified uninsured cause of loss and 50 acres of soybeans were
planted. The intended commodity information for the corn remains on the IFOR
and not carried forward to the RFOR. The actual quantity planted and calculated
expected revenue for the soybeans and wheat is entered on the RFOR.

IF an intended commodity on SCD is not planted at the time the RFOR is submitted AND
(1) the AIP verifies the failure to plant was due to an insured cause of loss; and (2) some
or all of the acres will not be planted to the intended commodity and will or will not be
replaced by a different commodity in the insurance period THEN:
(i)

the quantity of the planted acreage to the intended commodity, is entered in the
“Actual Quantity” column of the RFOR for the commodity; ***

(ii)

the quantity of the intended commodity not planted due to insured causes and
not replaced, is entered in the “Actual Quantity” column of the RFOR for the
commodity;

FCIC-18160-1

Revised Farm Operation Report (Continued)
Note:

The total of (i) and (ii) must not exceed the intended acreage of the
commodity.
The following applies if some or all acreage of the intended commodity not
planted due to insured causes will be replaced with a replacement commodity:

October 2022

(iii)

the actual quantity of the acreage of the intended commodity not planted due to
insured causes and replaced is entered in the “Actual Quantity” column of the
RFOR for the commodity;

(iv)

the quantity and expected revenue of the replacement commodity, with
expected value calculated as of the date the Revised Farm Operation is
submitted, is entered in the “Actual Quantity” and “Expected Revenue” columns,
respectively, of the RFOR for the replacement commodity;

(v)

the expected revenue of the acreage in item (iii) is reduced by the expected
revenue of the replacement commodity, and the reduced amount, if not less
than zero, is entered in the “Expected Revenue” column of the RFOR for the
acres of the intended commodity not planted (or with reduced production and
replacement). Do not carry forward acres of the intended commodity in item
(iii) if expected revenue is reduced to zero or less;

(vi)

the expected revenue of the acreage in item (ii) is multiplied by 0.60 and entered
in the “Expected Revenue” column of the RFOR for the acres for the acres; and

(vii)

the expected revenue of the replacement commodity is entered in full along
with the acres/head, etc., of the replacement commodity. The expected value of
the replacement commodity will be as of the date the commodity was planted or
purchased for further growth or purchased for resale. Refer to Example 3 below.

Example 3:

A producer intends to produce 125 acres of corn during the insurance period. At
Revised time the producer has not planted 50 acres to corn due to an insured
cause of loss. Only 25 of the unplanted acres will be planted to soybeans, with a
yield of 100 bushels per acre and an expected value of $6.00 per bushel at the
time of planting. The quantity of corn planted (75 ac.) is carried forward from
the IFOR to the RFOR. The acres not planted to corn and replaced (25 ac.) are
added on a new line and Total Expected Revenue will be entered as $3,750
which is the total expected revenue of corn adjusted by the total expected
revenue of soybeans. The acres not planted to corn due to insured causes and
not replaced (25 ac.) are added on a new line and the Total Expected Revenue
will be entered as $11,250 which is the total expected revenue of corn multiplied
by 0.60. The replacement commodity (soybeans) is added to the FOR using the
expected value at the time of planting.

FCIC-18160-1

Revised Farm Operation Report (Continued)

(g)

IF an intended commodity on SCD is planted but was damaged prior to harvest and prior
to the time the RFOR is submitted AND (1) the AIP verifies that the failure to produce or
the damage was due to an insured cause of loss; and (2) the intended commodity will
not be replaced by a different commodity in the insurance period THEN the numbers
pertaining to the quantity produced and expected revenue from the IFOR are carried
forward to the RFOR. Refer to Example 4 below.

Example 4:

(h)

A producer intends to produce 125 acres of corn and submits such on the IFOR.
The producer planted the corn and it was damaged by an insured cause of loss
prior to harvest and prior to the time the RFOR is due. The producer will not
replant nor replace the corn. The same quantity and expected revenue from the
IFOR will be carried forward to the RFOR.

IF an intended commodity on SCD is planted but was damaged prior to harvest and prior
to the time the RFOR is submitted AND (1) the AIP verifies failure to produce or the
damage to the intended commodity was due to an insured or uninsured cause of loss;
and (2) the intended commodity is or will be replaced a different commodity in the
insurance period THEN:
(i)

the quantity of the planted acreage to the intended commodity damaged and
not replaced is entered in the “Actual Quantity” column of the RFOR for the
commodity;
The following applies if some or all acreage of the intended commodity damaged
will be replaced with a replacement commodity:

(ii)

October 2022

the quantity of the acreage of the intended commodity damaged and replaced is
entered in the “Actual Quantity” column of the RFOR for the commodity;

FCIC-18160-1

Revised Farm Operation Report (Continued)
(iii)

the quantity and expected revenue of the replacement commodity, with
expected value calculated as of the date the RFOR is submitted, is entered in the
“Actual Quantity” and “Expected Revenue” columns, respectively, of the RFOR
for the replacement commodity;

(iv)

the expected revenue of the acreage in item (ii) is reduced by the expected
revenue of the replacement commodity, and the reduced amount, if not less
than zero, is entered in the “Expected Revenue” column of the RFOR for the
intended commodity not produced (or with reduced production and
replacement). Do not carry forward acres of intended commodity in item (ii) if
expected revenue is reduced to zero or less; and

(v)

(i)

IF an intended commodity on SCD is planted but was damaged prior to harvest and prior
to the time the RFOR is submitted AND (1) the AIP verifies the damage to the intended
commodity was due to an uninsured cause of loss; and (2) the intended commodity was
or was not replanted, or will not be replaced by a different commodity in the insurance
period THEN the numbers pertaining to the quantity and expected revenue of the
damaged intended commodity from the IFOR are carried forward to the RFOR. Refer to
Example 5 below.
Note:

Example 5:

October 2022

Any expected revenue lost due to an uninsured cause of loss will
be considered RTC for claims purposes.

Any expected revenue lost due to an uninsured cause of loss will be
considered RTC for claims purposes.
A producer intends to produce 125 acres of corn and 100 acres of soybeans
during this insurance period and submits such on the IFOR. At the time the
Revised Farm Operation is due the producer has planted the 125 acres of corn,
but 50 acres was damaged due to an uninsured caused of loss. The 100 acres of
the soybeans were planted, and all 100 acres was damaged prior to harvest from
the same uninsured cause of loss that damaged the corn. The 50 acres of
damaged corn will be replaced with buckwheat, with an expected yield of 75
bushels per acre and an expected value of $4.00/bushel at the time of planting.
The soybeans will not be replaced. The 75 acres of planted corn and the 100
acres of damaged acres and expected revenue of soybeans are carried forward
from the IFOR to the RFOR. The 50 damaged acres of corn that will be replaced
are added on a new line and the Total Expected Revenue will be entered as
$22,500 which is the total expected revenue of corn acres damaged and
replaced adjusted by the total expected revenue of buckwheat. The
replacement commodity (buckwheat) is added to the FOR using the expected
value at the time of planting.
FCIC-18160-1

Revised Farm Operation Report (Continued)

(10)

(j)

IF an intended commodity on SCD is changed after the date the RFOR is due, except
those resulting from a covered cause of loss AND (1) the insured reports this within 30
days, as required after the change to the AIP; and (2) the AIP consents that a revision to
the RFOR should be made THEN the AIP may revise the RFOR with the revised
commodities or commodity amounts. Expected values will be as of the date the
commodity was planted or purchased for further growth or purchased for resale. This
change assures that the farm operation will not be over-insured and that the premium
rates charged will be appropriate for what was produced.

(k)

IF an intended commodity on SCD is changed after the date the RFOR is due, except
those resulting from a covered cause of loss AND (1) The insured reports this within 30
days, as required after the change to the AIP; and (2) the AIP does not consent that a
revision to the RFOR should be made THEN no revisions are made to the RFOR and all
revenue will count as RTC, even if the commodity is not listed on the RFOR.

The Approved Revenue cannot exceed $17 million divided by the coverage level elected by the
insured. If this occurs the Approved Revenue will be capped. Any applicable Animal/Animal
Products, Nursery/Greenhouse, or Commodities Purchased for Resale limitations must be
calculated prior to applying the Approved Revenue limit. Regardless of any limitation, all
allowable revenue earned during the insurance period will be considered RTC.
Example:

(11)

October 2022

At the time the RFOR is due, the Approved Revenue is $22,000,000. The insured
has elected the 85 percent coverage level. $17,000,000 divided by .85 equals
$20,000,000, so the Approved Revenue for this farm is capped at $20,000,000.
Insured Revenue will equal $17,000,000 and all revenue earned during the
insurance period will be considered RTC.

For Micro Farm, the approved revenue cannot exceed $350,000 for a first year insured or
$400,000 for a carryover insured. If this occurs, the Approved Revenue will be capped at
$350,000 for a first year insured or $400,000 for a carryover insured. Regardless of this
limitation, all allowable revenue earned during the insurance period will be considered RTC.

FCIC-18160-1

Final Farm Operation Report
(1)

The total production for each commodity produced or purchased for resale in the insurance
period, and the revenue actually received, or the expected value as of the last day of the
insurance period if the production was not sold, must be provided:
(a)

in the “Final” columns of the FOR; and

(b)

at the earlier of the time a claim is submitted for indemnity or the SCD of the
subsequent policy year. For fiscal year filers whose fiscal year ends after the SCD of the
subsequent policy year, the FFOR is due the earlier of the date a claim is submitted or 60
days after the end of the current insurance period. If the FFOR is not provided, the
insured will be limited to a 65 percent coverage level for the next insurance period.
Note:

(2)

For Micro Farms the revenue actually received or the total expected value for
all commodities on the farm operation as of the last day of the insurance
period if the production was not sold should be reported in the final column
on the report. There is no need to report final total production.

If the insured does not submit a FFOR for the current policy year, cancels their WFRP policy for
the subsequent year, and no claim for indemnity is submitted, the AIP may use the information
from the RFOR to complete the FFOR.

IRS Tax Forms and Verifiable Records and/or Direct Marketing Sales Records
A.

IRS Tax Forms
(1)

Copies of the applicable IRS tax form(s), such as Schedule F, Form 1040, Form 1120,
Form 1041, Form 1065, Form 1102S, and Form 4835, including all farm related filed
statements and forms must be provided to the AIP for each tax year in the whole-farm
history period.
The AIP may request verifiable records and/or direct marketing sales records to verify
the allowable revenue on the WFHR if the AIP has reason to believe the farm tax form(s)
do not provide adequate documentation of revenue or expenses for WFRP purposes.
The AIP must not accept any WFHR if the allowable revenue for any year cannot be
verified through the requested verifiable records and/or direct marketing sales records.
***

(2)

Persons who do not file a Schedule F tax form must report and certify allowable revenue
in the same manner as provided on a Schedule F tax form by completing a Substitute
Schedule F. The Substitute Schedule F must contain all information that would appear
on a Federal Schedule F tax form, including farm expenses, and must be sufficient to
complete the Allowable Revenue Worksheet. The person must use the same accounting
period when completing the Substitute Schedule F as was used on the farm tax form
they filed with the IRS for the applicable year. ***
In addition to the Substitute Schedule F, such persons must provide:

October 2022

(a)

the farm tax forms filed with the IRS; and
FCIC-18160-1

IRS Tax Forms and Verifiable Records and/or Direct Marketing Sales Records (Continued)
A.

IRS Tax Forms (Continued)
(b)

verifiable records or direct marketing sales records for each year no Schedule F
tax form was filed.

The AIP must not accept any WFHR that does not include or is not supported by a
Substitute Schedule F and associated verifiable records, direct marketing sales records,
or for micro farm commodity code, consolidated sales records if no Schedule F tax form
was filed.
Refer to Exhibit 13 for an example of a Substitute Schedule F.
B.

Verifiable Records
Verifiable records include:
(1)

Disinterested third-party verifiable documentation, which may include, but is not limited
to, accounting records, farm management records, warehouse receipts, ledger sheets,
sales receipts/records, settlement sheets, accounts paid, payroll receipts, copies of
payments made to the Social Security Administration for tax payments, canceled checks
showing the banking institution’s stamp of payment, and feeding records. Refer to the
CIH for acceptable record requirements for vertically integrated entities. The Market
Certification is not applicable to WFRP and Micro Farm.
Official NAP approved yield forms will be considered supporting records. Insureds must
have records to substantiate the NAP approved yields and, if requested by the AIP,
submit those records.
Verifiable records regarding the buying or selling of a commodity, except those that are
considered direct marketed, must include the:

October 2022

(a)

name of seller;

(b)

name of the commodity;

(c)

practice, type, or variety, if applicable;

(d)

intended use of a commodity having significantly different expected values (e.g.,
alfalfa hay intended for dairy versus alfalfa hay intended for feedlot cattle);

(e)

name of buyer, seller, store house, or marketing outlet, as applicable; and

(f)

date and year of transaction.

FCIC-18160-1

IRS Tax Forms and Verifiable Records and/or Direct Marketing Sales Records (Cont.)
B.

Verifiable Records (Continued)
(2)

Direct marketing sales records and for Micro Farm, consolidated sales records, may
include a year-end record that includes a total value for the commodities reported as
combined direct marketing or under the Micro Farm Provisions, provided the total
reported revenue is a complete record of revenue generated from combined direct
marketing or Micro Farm commodities and, if requested by the AIP, contemporaneous
records developed at the same time of the sale of a commodity (e.g., farmers market,
roadside stand, etc.). Contemporaneous records may include daily receipts or other
periodic (e.g., weekly, monthly, quarterly) records used to substantiate the revenue
reported on the farm tax forms. If the insured sells commodities through direct
marketing or insured under the Micro Farm Provisions, the records used to determine
taxes paid on the Schedule F farm tax form must be provided to the AIP.
(a)

(b)

(c)

Direct marketing sales records regarding the selling of commodities sold directly
to the consumer or insured under the Micro Farm Provisions must include:
(i)

insured’s name;

(ii)

date;

(iii)

name of the market, website, or buyer, as applicable;

(iv)

total cash receipts; and

(v)

listed names of the commodities sold (applicable only if not considered a
combined direct marketing commodity or insured under the Micro Farm
Provisions).

For final production reporting, direct marketing sales records and consolidated
sales records must include at a minimum:
(i)

For combined direct marketing or Micro Farm commodities, a record that
includes a total value for all combined direct marketing or Micro Farm
commodities.

(ii)

For commodities not considered a combined direct marketing
commodity:
estimated percent of total cash receipts for each commodity sold;
and

(B)

revenue per commodity received.

For use of establishing a three-year average to use for expected values:
(i)

October 2022

(A)

For combined direct marketing commodities, refer to Paragraph 150.
FCIC-18160-1

IRS Tax Forms and Verifiable Records and/or Direct Marketing Sales Records (Cont.)
B.

Verifiable Records (Continued)
(ii)

For direct marketed commodities not considered a combined direct
marketing commodity:
(A)

amount of each commodity taken to market;

(B)

amount of each commodity returned from the market;

(C)

amount of each commodity sold;

(D)

prices per commodity sold on the date of market; and

(E)

revenue received for each commodity.

Refer to Exhibit 16 for an example direct marketing sales records related
to commodities not considered combined direct marketing commodities.
(iii)
(3)

For Micro Farm, refer to Paragraph 161.

For entities that are not required to file federal tax forms (e.g., tribal entities):
(a)

The entity must have filed reports with a disinterested third-party supported by
verifiable records and/or direct marketing sales records that are determined to
be sufficient to develop a Substitute Schedule F for each year in the whole-farm
history period; and

(b)

The reports used to develop the Substitute Schedule F will be considered the
farm tax forms for WFRP purposes.

The AIP must not accept any revenue amount or an adjustment to the revenue amount if the
amount reported for WFRP purposes cannot be verified through the use of verifiable records.
52

WFRP Database
An insured’s WFRP database consists of their revenue history for the five consecutive tax years prior to
the tax year immediately preceding the lag year. ***
Example 1:

The five consecutive tax years of revenue history in a database for calendar and early
fiscal year filers for the 2023 policy year are tax years 2017 through 2021. There is
always a lag year before the policy year. ***

Example 2:

The five consecutive tax years of revenue history in a database for late fiscal year filers
for the 2023 policy year are tax years 2016 through 2020. There is always a lag year
before the policy year. ***

The revenue history for a tax year must remain in the database until the tax year is outside the five
year whole-farm history period, or it is determined the revenue for a tax year must be corrected. ***
October 2022

FCIC-18160-1

Premium Calculation and Subsidy
(1)

The county with the largest amount of expected revenue on the farm is the county that should
be listed on the application and FOR. Premium rates from this county will be used to determine
premium under WFRP. Regardless of the county listed on the application, the county with the
highest expected revenue at the time RFOR is submitted will be used for rating purposes.
Calculate the WFRP premium according to the WFRP policy. Refer to the Detail Worksheet of
the Cost Estimator on the RMA website for an example.

(2)

If insured purchases or has purchased individual Federal crop insurance policies issued under
the authority of the Act, the insured revenue will be adjusted to reflect these purchases for
premium calculations only.

(3)

Do not include the liability for commodities such as pasture and rangeland insured under the
Rainfall Index or Vegetation Index policies or the portion of liability attributed to commodities
or portions of commodities produced for feed for use on the insured’s operation because these
commodities are not insured under the WFRP Policy.

(4)

The subsidy amount will be based on the commodity count determined by the commodity
count calculation and the table specified in the AD. If a farmer or rancher qualifies as a BFR or
VFR, the subsidy amount will be an additional ten percentage points and no administrative fee
will be due.

(5)

The premium subsidy for acres on native sod will be calculated in accordance with the reduced
amount of subsidy allowed for native sod acres.

54-70 (Reserved)

October 2022

FCIC-18160-1

Section 2 Revenue Calculations
71

Revenue
A.

Simple Average Allowable Revenue
To calculate the simple average allowable revenue:
(1)

(2)

For a qualifying person with five years of farm tax forms in their whole-farm history
period:
(a)

sum the allowable revenue for each year in the whole-farm history period; and

(b)

divide the result of (a) by five (rounded to the nearest whole dollar).
Example:

Insured A has the following allowable revenue: $250,500 for
2017; $300,256 for 2018; $99,350 for 2019; $98,750 for 2020; and
$215,515 for 2021. Insured A’s average revenue is $192,874
[($250,500 + $300,256 + $99,350 + $98,750 + $215,515) ÷ 5].

Example:

Insured elected Micro Farm and has five years of farm tax forms in
their micro farm whole-farm history period. The insured has the
following allowable revenue: $86,100 for 2018, $86,250 for 2019,
$85,000 for 2020; $86,500 for 2021; $91,300 for 2022. Insured
average revenue is $87,030 [($86,100 + $86,250 + 85,000 +
$86,500 + $91,300) ÷ 5].

For a qualifying person with four years of farm tax forms in their whole-farm history
period:
(a)

determine the allowable revenue for the lag year using the insured’s Schedule F
or Substitute Schedule F (if applicable) and the Allowable Revenue Worksheet;
Note:

(b)

sum the allowable revenue for each year in the whole-farm history period;

(c)

add the result of (a) to the result of (b); and

(d)

divide the result of (c) by five (rounded to the nearest whole dollar).
Example:

October 2022

The insured must provide their farm tax forms, and other signed
tax forms as requested by the AIP, for the lag year not later than
60 days after they are filed with the IRS.

Insured B did not earn any farm revenue during the 2021 policy
year due to an illness. The insured did earn farm revenue during
the 2022 policy year which is considered the lag year. The insured
has the following allowable revenue: $160,360 for 2022 (lag
year), $130,500 for 2017; $149,500 for 2018; $112,000 for 2019;
$139,600 for 2020. Insured B’s average revenue is $138,392
[($160,360 + $130,500 + $149,500 + $112,000 + $139,600) ÷ 5].
FCIC-18160-1

Revenue (Continued)
A.

Simple Average Allowable Revenue (Continued)
(3)

For a qualifying person with three years of farm tax forms in their whole-farm history
period:
(a)

determine the allowable revenue for the lag year using the insured’s Schedule F
or Substitute Schedule F (if applicable) and the Allowable Revenue Worksheet;
Note:

(b)

determine the lowest allowable revenue from the three years in the whole-farm
history period and the result of (a);

(c)

sum the allowable revenue for each year in the whole-farm history period;

(d)

add the results of (a) and (b) to the result of (c); and

(e)

divide the result of (d) by five (rounded to the nearest whole dollar).
Example:

(4)

October 2022

The insured must provide their farm tax forms, and other signed
tax forms as requested by the AIP, for the lag year not later than
60 days after they are filed with the IRS.

Insured C is a BFR with three years of tax records for 2019-2021.
The insured also has farm revenue for the 2022 policy year which
is considered the lag year. The insured has the following
allowable revenue: $149,500 for 2022 (lag year); $112,000 for
2019; $139,600 for 2020; and $160,360 for 2021. The lowest
allowable revenue from the whole-farm history period and the lag
year is $112,000 (2019). Insured C’s average revenue is $134,692
[($149,500 + $112,000 + $112,000 + $139,600 + $160,360) ÷ 5].

For a qualifying person under Micro Farm with three years of tax records in the micro
farm whole-farm history period:
(a)

determine the lowest allowable revenue from the three years in the micro farm
whole-farm history period;

(b)

sum the allowable revenue for each year in the micro farm whole-farm history
period;

(c)

add the result of (a) to the result of (b);

(d)

add the result of (a) to the result of (c); and

(e)

divide the result of (d) by five (rounded to the nearest whole dollar).

FCIC-18160-1

Revenue (Continued)
A.

Simple Average Allowable Revenue (Continued)
Example:

(5)

For a qualifying person under Micro Farm with four years of tax records in the micro
farm whole-farm history period:
(a)

determine the lowest allowable revenue from the four years in the micro farm
whole-farm history period;

(b)

sum the allowable revenue for each year in the micro farm whole-farm history
period;

(c)

add the result of (a) to the result of (b); and

(d)

divide the result of (c) by five (rounded to the nearest whole dollar).
Example:

Insured D elected Micro Farm and has three years of tax records
in their micro farm whole-farm history period. The insured has
the following allowable revenue: $85,000 for 2019; $86,500 for
2020; $91,300 for 2021. The lowest allowable revenue from the
micro farm whole-farm history period $85,000 (2019). Insured D’s
average revenue is $86,560 [($85,000 + $86,500 + $91,300 +
$85,000 + $85,000) ÷ 5].

Insured E elected Micro Farm and has four years of tax records in
their micro farm whole-farm history period. The insured has the
following allowable revenue: $86,250 for 2018, $85,000 for 2019;
$86,500 for 2020; $91,300 for 2021. The lowest allowable
revenue from the micro farm whole-farm history period $85,000
(2019). Insured E’s average revenue is $86,810 [($86,250 +
85,000 + $86,500 + $91,300 + $85,000) ÷ 5].

Insurance Options
The insured may select one or more of the following options. However, if more than one
option is selected the option with the highest revenue amount will be considered elected and
used in determination of their whole-farm historic average.
(1)

Revenue Substitution
Revenue substitution, when elected, allows the substitution of any year within an
insured’s whole-farm history period that falls below 60 percent of their simple average
allowable revenue or, if eligible and elected, their indexed simple average allowable
revenue.

October 2022

(a)

To be eligible for the current policy year, the insured must elect revenue
substitution by the applicable SCD.

(b)

If elected:
FCIC-18160-1

Revenue (Continued)
B.

Insurance Options (Continued)

calculate the revenue substitution amount by multiplying the simple
average revenue or indexed simple average revenue, if applicable, by
0.60;

(ii)

determine the allowable or, if eligible and elected, the indexed allowable
revenue amounts of each year that fall below the result of (i);

(iii)

substitute the result(s) of (ii) with the result of (i); and

(iv)

Calculate the average allowable revenue as stated in Subparagraph 71D.

Revenue Substitution cannot be used in conjunction with Revenue Exclusion.

Revenue Exclusion
(a)

(b)
(3)

(i)

Revenue exclusion, when elected, allows the exclusion of the lowest allowable
revenue amount or, if eligible and elected, their lowest indexed allowable
revenue within the insured’s whole-farm history period.
(i)

To be eligible for the current policy year, the insured must elect revenue
exclusion by the applicable SCD;

(ii)

If elected, exclude lowest allowable revenue amount or, if eligible and
elected, their lowest indexed allowable revenue within the insured’s
whole-farm history period; and

(iii)

Calculate the average allowable revenue as stated in Subparagraph 71D.

Revenue Exclusion cannot be used in conjunction with Revenue Substitution.

Revenue Cup
Revenue cup, if elected, allows the replacement of the whole-farm historic average
revenue with an amount equal to 90 percent of the insured’s previous policy year’s
approved revenue if the insured’s average allowable revenue is less than 90 percent of
the insured’s previous policy year’s approved revenue.
(a)

(b)

To be eligible for the current policy year, the insured must:
(i)

be a carryover insured; and

(ii)

elect revenue cup by the applicable SCD.

If elected:
(i)

October 2022

calculate the revenue cup by multiplying the insured’s previous year’s
approved revenue by 0.90; and
FCIC-18160-1

Revenue (Continued)
B.

Insurance Options (Continued)
(ii)

if the average allowable revenue is less than the result of (i), replace the
whole-farm historic average revenue with the result of (i).

Indexed Average Revenue
(1)

Indexed revenue may be calculated for persons with increasing revenue to determine if
increased coverage is applicable. Not all persons qualify to use indexed revenue. If
qualified, the insured must choose whether or not to use the indexed revenue.
Document the insured’s choice by selecting either yes or no on item 17 of the WFHR. To
qualify for indexing, the insured must have five years of farm tax forms in their wholefarm history period and the allowable revenue for either of the two most recent tax
years in the whole-farm history period must be greater than the simple average
allowable revenue calculated for the whole-farm history period.

(2)

To calculate the simple indexed average revenue.
(a)

Divide the allowable revenue for each tax year in the whole-farm history period
by the allowable revenue from the previous tax year. There is no calculation for
the first year in the whole-farm history period because there is no previous tax
year. Round the result to three decimal places. The result is capped at 1.200
and cupped at 0.800.
Example:

Insured A has the following allowable revenue: $250,500 for 2017
(Year 1); $300,256 for 2018 (Year 2); $99,350 for 2019 (Year 3);
$98,750 for 2020 (Year 4); and $215,515 for 2021 (Year 5). The
following is the result of the first step in the indexed average
revenue calculation by year.
2018 = 1.199 ($300,256 ÷ $250,500)
2019 = 0.331 ($99,350 ÷ $300,256) (cupped at .800)
2020 = 0.994 ($98,750 ÷ $99,350)
2021 = 2.182 ($215,515 ÷ $98,750) (capped at 1.200)

(b)

Sum the results for each year obtained in (a), then divide the total by four to
determine the revenue trend factor. Round result to three decimal places. The
result is floored at 1.000.
Example:

October 2022

Including the cups and caps, the result of the second step in the
indexed average revenue calculation is 1.048 [(1.199 + 0.800 +
0.994 + 1.200) ÷ 4].

FCIC-18160-1

Revenue (Continued)
C.

Indexed Average Revenue (Continued)
(c)

Raise the result of (b) to the sixth power. Round result to three decimal places.
Example:

(d)

Raise the result of (b) to the fifth. Round result to three decimal places.
Example:

(e)

The result is $113,661 (1.151 × $98,750).

Multiply the result of (g) by the year 5 allowable revenue. Round result to
nearest whole dollar.
Example:

October 2022

The result is $119,816 (1.206 × $99,350).

Multiply the result of (f) by the year 4 allowable revenue. Round result to
nearest whole dollar.
Example:

(l)

The result is $379,524 (1.264 × $300,256).

Multiply the result of (e) by the year 3 allowable revenue. Round result to
nearest whole dollar.
Example:

(k)

The result is $331,913 (1.325 × $250,500).

Multiply the result of (d) by the year 2 allowable revenue. Round result to
nearest whole dollar.
Example:

(j)

The is 1.098 (1.048 × 1.048).

Multiply the result of (c) by the year 1 allowable revenue. Round result to
nearest whole dollar.
Example:

(i)

The result is 1.151 (1.048 × 1.048 × 1.048).

Raise the result of (b) to the second power. Round result to three decimal
places.
Example:

(h)

The result is 1.206 (1.048 × 1.048 × 1.048 × 1.048).

Raise the result of (b) to the third power. Round result to three decimal places.
Example:

(g)

The result is 1.264 (1.048 × 1.048 × 1.048 × 1.048 × 1.048).

Raise the result of (b) to the fourth power. Round result to three decimal places.
Example:

(f)

The result is 1.325 (1.048 × 1.048 × 1.048 × 1.048 × 1.048 × 1.048).

The result is $236,635 (1.098 × $215,515).

FCIC-18160-1

Revenue (Continued)
C.

Indexed Average Revenue (Continued)
(3)

October 2022

To calculate the indexed average revenue:
(a)

sum the indexed revenue for each year in the whole-farm history period, after
any applicable adjustments; and

(b)

divide the result of (a) by the number of years in the whole-farm history period
(rounded to the nearest whole dollar).

(c)

the indexed average revenue is equal to the lesser of:
(i)

the result of (b); or

(ii)

the highest allowable revenue (column 7 of the WFHR) amount in the
whole-farm history period.
Example 1:

Insured does not elect an insurance option and the highest
allowable revenue within the whole-farm history period is
$300,256; their indexed average revenue is $236,310
[($331,913 + $379,524 + $119,816 + $113,661 + $236,635)
÷ 5].

Example 2:

Insured elects to use Revenue Substitution Option (60
percent of their simple indexed average revenue option),
$141,786 [($331,913 + $379,524 + $119,816 + $113,661 +
$236,635) ÷ 5] × 0.60, to replace any years less than that
amount within their whole-farm history period. Insured
has two years within their history that falls below 60
percent of their simple indexed average revenue
($119,816 and $113,661). Using the new allowable
revenue amounts and since the highest allowable revenue
amount within the whole-farm history is $300,256, their
indexed average revenue is $246,329 [($331,913 +
$379,524 + $141,786 + $141,786 + $236,635) ÷ 5].

Example 3:

Insured elects to use the Revenue Exclusion Option (drop
the lowest indexed revenue amount option within their
whole-farm history period). After dropping the lowest
amount within their history ($113,661) and since the
highest allowable revenue amount within the whole-farm
history is $300,256, the insured average allowable revenue
is $266,972 [($331,913 + $379,524 + $119,816 + $236,635)
÷ 4].

FCIC-18160-1

Revenue (Continued)
D.

Average Allowable Revenue
The following calculation will only apply if the insured chooses not to index and either elects or
not, one of the available insurance options offered in Subparagraph 71B. Otherwise, the
average allowable revenue will equal the simple average as calculated below.
To calculate the average allowable revenue:

(1)

sum the allowable revenue for each year in the whole-farm history period, after any
applicable adjustments; and

(2)

divide the result of (1) by the number of years in the whole-farm history period
(rounded to the nearest whole dollar).

Example 1:

Insured does not elect an insurance option; their average allowable revenue is
$192,874 [($250,500 + $300,256 + $99,350 + $98,750 + $215,515) ÷ 5].

Example 2:

Insured elects to use the Revenue Substitution Option (60 percent of their simple
average allowable revenue option), $115,725 [($250,500 + $300,256 + $99,350 +
$98,750 + $215,515) ÷ 5] × 0.60, to replace any years less than that amount
within their whole-farm history period. Insured has two years within their
history that falls below 60 percent of their simple average allowable revenue
($99,350 and $98,750). Using the new allowable revenue amounts, the insured’s
average allowable revenue is $199,544 [($250,500 + $300,256 + $115,725 +
$115,725 + $215,515) ÷ 5].

Example 3:

Insured elects to use the Revenue Exclusion Option (drop the lowest allowable
revenue amount option within their whole-farm history period). After dropping
the lowest amount within their history ($98,750), the insured average allowable
revenue is $216,405 [($250,500 + $300,256 + $99,350 + $215,515) ÷ 4].

Expanded Operation Average Revenue
Expanded operation procedures are not applicable to Micro Farm.
(1)

Expanded operation average revenue will be calculated for all applicants/insureds when
the insured provides documentation indicating their operation is physically expanding
either by adding production capacity to their farm operation (i.e., by adding land or an
addition of a greenhouse), increasing the use of existing production capacity (e.g., by
double-cropping existing land or beginning production on high density blocks or
orchards), or making physical alterations to existing production capacity (e.g., by adding
irrigation to existing land or beginning production on certified organic acreage) and is
approved by the AIP. If so:
(a)

October 2022

The insured must provide verifiable records that the AIP agrees are sufficient to
determine the amount of revenue an expansion can be expected to generate:

FCIC-18160-1

Revenue (Continued)
E.

Expanded Operation Average Revenue (Continued)
(i)

For a farm operation that is expanding during the current insurance
period, by the date on which the insured is required to submit their
Revised Farm Operation; or

(ii)

For a farm operation where the expansion occurred during the lag year,
by the later of the SCD or the first days of their insurance period.

(b)

The AIP will determine the amount of revenue from the expansion, using
information applicable to the current insurance period (i.e., expected yield and
value), approved for the purpose of determining the expanding operation factor.

(c)

If more than one expansion (lag year and current year) is applicable to the farm
operation, the AIP will determine the amount of revenue for each expansion
separately. The total expanding operation factor will not exceed 1.35 for
expansions not due solely to certified organic sources. Refer to Subparagraph
71E(1)(f)(iv). For expansions that are due solely to certified organic sources, the
expansion amount cannot exceed the greater of 35 percent of the simple
average allowable revenue or $500,000. Refer to Subparagraph 71E(1)(g).

(d)

If the insured has also made a physical reduction in their production capacity,
the AIP will only consider the net increase in production capacity from the
highest amount of production capacity of the years in the insured’s whole-farm
history period when determining their expanding operation factor.
Example:

The insured’s operation controlled the following acres within the
whole-farm history period.
2017 – 500 acres
2018 – 450 acres
2019 – 400 acres
2020 – 400 acres
2021 – 350 acres
2022 – 350 acres
They are requesting an expanding operation factor based on 200
added acres in the current year (2023) to their existing 350 acres
for a new total of 550 acres. Their net increase in acres is 50 acres
(550 acres – 500 acres) due to 500 acres (2017) being their highest
amount of production capacity within their whole-farm history
period.

October 2022

FCIC-18160-1

Revenue (Continued)
E.

Expanded Operation Average Revenue (Continued)
(e)

If the insured’s farm operation is expanding due to adding organic practice
production capacity or beginning production on existing production capacity
converted to an organic practice, they may elect to submit only the organic
practice expansion for consideration to be approved as an expanding operation.
If they do, they may only qualify for calculating their expanding operation factor
using the organic expansion calculation in Subparagraph 71E(1)(g) below. The
AIP will only consider the net increase in organic practice production capacity
from the highest amount of organic practice production capacity of the years in
the insured’s whole-farm history period when determining their expanding
operation factor.

(f)

For expansions not due solely to certified organic sources, the expanded
operation adjusted revenue will be calculated as follows for:
(i)

An expansion that will occur in the current year:
(A)

Determine the Simple Average Allowable revenue for the WholeFarm History Period. Refer to Subparagraph 71A.
Example:

(B)

Add the amount of revenue from the physical expansion of the
farm operation that will or has occurred during the current policy
year, as determined by the AIP, to the Simple Average Allowable
Revenue.
Example:

(C)

October 2022

For the current policy year, the insured has added
500 acres to the farm operation with an additional
$100,000 of expected revenue determined by the
AIP. $292,874 ($192,874 + $100,000)

Divide the result of (B) by the result of (A). Round the result to
two decimal places, not to exceed 1.35, to determine the
Expanding Operation Factor.
Example:

(D)

Insured has the following allowable revenue:
$250,500 for 2017; $300,256 for 2018; $99,350 for
2019; $98,750 for 2020; and $215,515 for 2021.
The insured’s simple average revenue is $192,874
[($250,500 + $300,256 + $99,350 + $98,750 +
$215,515) ÷ 5].

$292,874 ÷ $192,874 = 1.52 (capped at 1.35)

Multiply the result of (C) by the result of (A) to determine the
Expanded Operation Adjusted Revenue.
Example:
$192,874 × 1.35 = $260,380
FCIC-18160-1

Revenue (Continued)
E.

Expanded Operation Average Revenue (Continued)
(ii)

For an expansion that occurred in the lag year:
(A)

Determine the Simple Average Allowable revenue for the WholeFarm History Period. Refer to Subparagraph 71A.
Example:

(B)

(C)

$192,874 × 1.13 = $217,948

For the subsequent policy year (2024), an expansion that occurred in the
current policy year (2023) will be determined in accordance with (f)(ii)
above.
Example:

October 2022

$217,874 ÷ $192,874 = 1.13

Multiply the result of (C) by the result of (A) to determine the
Expanded Operation Adjusted Revenue.
Example:

(iii)

In 2022, the lag year, the insured added 100 acres
to the farm operation which generated an
additional $25,000 of expected revenue
determined by the AIP. $217,874 ($192,874 +
$25,000).

Divide the result of (B) by the result of (A). Round the result to
two decimal places, not to exceed 1.35, to determine the
Expanding Operation Factor.
Example:

(D)

Insured has the following allowable revenue:
$250,500 for 2017; $300,256 for 2018; $99,350 for
2019; $98,750 for 2020 and $215,515 for 2021.
The insured’s simple average revenue is $192,874
[($250,500 + $300,256 + $99,350 + $98,750 +
$215,515) ÷ 5].

An expansion occurred in the current policy year 2023.
The Whole-Farm History period for this expansion is 2017,
2018, 2019, 2020, and 2021 with 2022 being the lag year.
For the subsequent policy year 2024, the Whole-Farm
History period for the expansion occurring in 2023 is 2018,
2019, 2020, 2021, and 2022 with 2023 being the lag year.

FCIC-18160-1

Revenue (Continued)
E.

Expanded Operation Average Revenue (Continued)
(iv)

For expansions that occurred in the current year and the lag year:
(A)

Determine the Simple Average Allowable revenue for the WholeFarm History Period. Refer to Subparagraph 71A.
Example:

(B)

Determine the amount of revenue from the physical expansion of
the farm operation that will occur during the current policy year.
Example:

For the current policy year, the insured has added
500 acres to the farm operation with an additional
$100,000 of expected revenue determined by the
AIP.

(C)

Add the result of (B) to the result of (A). $292,874 ($192,874 +
$100,000)

(D)

Determine the amount of revenue from the physical expansion of
the farm operation that occurred during the lag year using
information applicable to the current policy year (i.e., expected
values).
Example:

In 2022, the lag year, the insured added 100 acres
to the operation which generated an additional
$25,000 of expected revenue as determined by the
AIP.

(E)

Add the result of (D) to the result of (C). $317,874 ($292,874 +
$25,000)

(F)

Divide the result of (E) by the result of (A). Round the result to
two decimal places, not to exceed 1.35, to determine the
Expanding Operation Factor.
Example:

(G)

$317,874 ÷ $192,874 = 1.65 (capped at 1.35)

Multiply the result of (A) by the result of (F) to determine the
Expanded Operation Adjusted Revenue.
Example:

October 2022

$192,874 × 1.35 = $260,380

FCIC-18160-1

Revenue (Continued)
E.

Expanded Operation Average Revenue (Continued)
(g)

For expansions due solely to certified organic sources in the current year and/or
the lag year, the expanded operation adjusted revenue will be calculated as
follows:
The following examples will be used for the purposes of organic expanding
operation calculations below:
Example 1:

The insured has a Simple Average Allowable Revenue of $100,000.
The insured has acquired an additional 25 certified organic acres
that will produce $100,000 in allowable revenue in the current
year.

Example 2:

The insured has a Simple Average Allowable Revenue of
$1,500,000. The insured acquired an additional 25 certified
organic acres that will produce $100,000 in allowable revenue in
the current year. The insured also acquired 75 certified organic
acres in the lag year that produces $250,000.

(i)

(ii)

(iii)

(iv)

October 2022

Multiply the Simple Average Allowable Revenue by 0.35.
Example 1:

$35,000 ($100,000 × 0.35)

Example 2:

$525,000 ($1,500,000 × 0.35)

Determine the greater of $500,000 or the result of (i).
Example 1:

$500,000

Example 2:

$525,000

Add the Simple Average Allowable Revenue to the result of (ii).
Example 1:

$600,000 ($100,000 + $500,000)

Example 2:

$2,025,000 ($1,500,000 + $525,000)

Add the amount of revenue from the certified organic expansion, as
determined by the AIP, to the Simple Average Allowable Revenue.
Example 1:

$200,000 ($100,000 + $100,000)

Example 2:

$1,600,000 ($100,000 + $1,500,000)

FCIC-18160-1

Revenue (Continued)
E.

Expanded Operation Average Revenue (Continued)
(v)

(vi)

(vii)

(viii)

(2)

(3)

Example 1:

$200,000 ($200,000 + $0.00)

Example 2:

$1,850,000 ($1,600,000 + $250,000)

Determine the lesser of the results of (iii) and (v).
Example 1:

$200,000

Example 2:

$1,850,000

Divide the result of (vi) by the Simple Average Allowable Revenue to
determine the expanding operation factor. Round the result to two
decimal places.
Example 1:

2.00 ($200,000 ÷ $100,000)

Example 2:

1.23 ($1,850,000 ÷ $1,500,000)

Multiply the Simple Average Allowable by the result of (vii) to determine
the Expanded Operation Adjusted Revenue.
Example 1:

$200,000 ($100,000 × 2.00)

Example 2:

$1,845,000 ($1,500,000 × 1.23)

The following will not be considered physical expansion:
(a)

Crop rotation, planting pattern change (excluding anything allowed in
Subparagraph 71E(1)) or planting a higher value commodity without changes to
the farm operation’s existing production capacity.

(b)

For perennial crops, beginning production on an orchard or grafted acreage (or
other unit of land) if any revenue from the production on that land was
generated during the insured’s whole-farm history period.

(c)

For livestock, an increase in the number of livestock expected to produce
revenue during the insurance period with no other changes in the facilities or
production capacity.

An expanding operation factor cannot be approved until:
(a)

October 2022

Add the result of (iv) to the amount of revenue from the certified organic
expansion that occurred in the lag year, as determined by the AIP.

the insured provides documentation verifying they actually undertook their
proposed expansion as indicated on the IFOR; and
FCIC-18160-1

Revenue (Continued)
E.

Expanded Operation Average Revenue (Continued)
(b)
(4)

the expansion was completed in time for it to provide the stated revenue to the
farm operation during the insurance period.

Any time the AIP determines the information used to establish the insured’s expanding
operation factor does not reflect the revenue the insured could have expected to
receive when the commodity would be harvested, the AIP will revise the expanding
operation factor to the amount determined to be correct.

Whole-Farm Historic Average Revenue
The applicant’s/insured’s whole-farm historic average revenue is the highest of their:
(1)

average allowable revenue;

(2)

indexed average revenue (if applicable);

(3)

90 percent of the insured’s previous year’s approved revenue (if elected); or

(4)

expanded operation adjusted revenue (if applicable).

The whole-farm historic average revenue is then entered on the FOR.
G.

Total Expected Revenue
The Total Expected Revenue is determined by the commodities listed on the FOR and valued in
accordance with the WFRP policy and Exhibit 18. The Total Expected Revenue is used in
determining premium amount and approved revenue.

Approved Revenue
The approved revenue is determined by the AIP and is used to calculate the WFRP coverage
amount and premium.
(1)

(2)
72

The approved revenue is determined on the FOR and is the lesser of the:
(a)

total expected revenue; or

(b)

whole-farm historic average revenue.

For Micro Farm, the approved revenue is determined on the FOR and must not exceed
$350,000 for the first year of coverage or $400,000 for a carryover insured.

(Reserved)

***

October 2022

FCIC-18160-1

Inventory
(1)

(2)

The inventory is used to adjust the approved revenue to only revenue produced during the
insurance period.
(a)

If the farm has Animals and Animal Products or Nursery and Greenhouse (excluding
farms covered under Micro Farm), those inventory items should be recorded on the
Market Animal and Nursery Inventory Report because they are valued at both the
beginning and ending of the insurance period.

(b)

All other inventory items (including commodities covered under Micro Farm) are
recorded on the Inventory Report and valued in accordance with Exhibits 5 and 7.

Accurate and complete inventory information will be used to:
(a)

ensure that revenue produced in previous years is removed from the current year’s
approved revenue;

(b)

maintain an accounting of commodities on hand at the beginning and at the end of the
insurance period;

(c)

determine the amount of revenue earned during the insurance period for commodities,
including nursery, greenhouse, and animals, that are held for more than one policy year
to realize a gain in revenue because of an increase in size or maturity, such as trees,
shrubs, and bushes in a nursery; and

(d)

calculate RTC when there is loss claimed.
Important:

(3)

(4)

October 2022

Refer to Paragraph 106 for RTC calculation.

Beginning inventories must be provided to the AIP on or before:
(a)

the SCD for insureds who are calendar year tax filers; or

(b)

the later of the date:
(i)

the insured submits their application; or

(ii)

last day of the month in which the fiscal year begins if the insured is an early or
late fiscal year filer.

If the insured does not submit beginning inventory reports, including zero inventories, as
required in item (3) above, any revenue received from commodities produced or purchased for
resale in prior policy years reported on the insured’s tax forms will be included as RTC at claim
time.

FCIC-18160-1

Inventory (Continued)
(5)

The inventory report must provide a count or measurement of the insured’s quantity of the
commodity in inventory using the unit of measure in which the commodity is marketed, such as
bushels, tons, pounds, boxes, head, or carton. Units of measure can be found in Exhibit 20.
The inventory should list multiple lines for a commodity if the type or variety has local market
expected values that vary substantially by type or variety.

(6)

All insurable commodities that are stored, unharvested, held for sale, or held for on-farm use
but are not used by the end of the insurance period must be included on the Inventory Report
or Market Animal and Nursery Inventory Report regardless of whether the commodity was
harvested, held to realize a gain in maturity or size, or was simply unsold.

(7)

The information on the Inventory Report and the Market Animal and Nursery Inventory Report
must be substantiated by the AIP using verifiable records, including but not limited to:

(8)

(a)

storage records from elevators, packing houses, warehouses, or other commercial
storage facilities;

(b)

measurements of farm stored production if measured by an AIP, FSA, or other USDA
authorized representative;

(c)

complete and accurate count of animals; and

(d)

complete and accurate count of nursery commodities.

The beginning inventory will not include commodities planted solely for production during the
insurance period (i.e., corn planted that will be harvested in the insurance period) but will
include any commodity held for more than one insurance period, whether in storage,
unharvested (i.e., corn from the previous year that is still in the field but ready for harvest), or
to realize a gain in revenue because of an increase in size or maturity, such as animals, trees,
shrubs, and bushes in a nursery. Refer to Paragraphs 143 and 144 for more information about
inventory requirements for animals and nursery commodities.
However, some commodities, such as avocados and citrus, may mature to the point the
commodity is regarded as produced and saleable at established markets but remain “stored on
the tree” for several additional months. Such saleable production that was produced in the
previous insurance period but is “stored on the tree” at the beginning of the current insurance
period must be accounted for on the inventory report for the current insurance period.
For Market Animals and Nursery Inventory, the inventory will be valued at the beginning of the
insurance period so that the gain in value of the commodity during the insurance period can be
measured at the end of the insurance period.

(9)

October 2022

The ending inventory is completed at the end of the insurance period and the difference in
value, or the ending inventory less the beginning inventory, is used as the adjustment amount.
The Inventory adjustments will be used on the Claim for Indemnity Form in item 22 for the
Inventory Report and item 26 for the Market Animal and Nursery Inventory Report.
FCIC-18160-1

Accounts Receivable Report
The Accounts Receivable Report is not required for each year in the five year whole-farm history
period. The report is only required for the current policy year, if applicable.
(1)

(2)

(3)

The Beginning Accounts Receivable Report will be valued on the first day of the insurance
period and submitted by:
(a)

the SCD for insureds who are calendar year tax filers; or

(b)

the later of the date:
(i)

the insured submits their application; or

(ii)

last day of the month in which the fiscal year begins if the insured is an early or
late fiscal year filer.

The Ending Accounts Receivable Report will be valued on the last day of the insurance period
and submitted by the earlier of:
(a)

the time a claim is submitted for indemnity or the SCD of the subsequent policy year for
insureds that are calendar year tax filers; and

(b)

the time a claim is submitted for indemnity or 60 days after the end of the insurance
period for insureds that are early or late fiscal year tax filers.

Revenue from commodities produced during the insurance period that have been sold and are
no longer on the farm but for which payment has not been received are reported in Part 2 of
the Accounts Receivable Report. If the value is shown on the farm tax forms due to the
accounting method, then the commodity would not be listed on the Accounts Receivable
Report. The amount of accounts receivable will count as revenue for the insurance period and
is entered in item 23 of the Claims for Indemnity Form.
Example:

Insured A sold and delivered 100 boxes of cucumbers to a processor for a
specified price but has not received the payment from the processor. Insured A
has another 200 boxes of cucumbers they have not sold and for which there is
no specified price. Insured A includes the 100 boxes of cucumbers sold to the
processor in the Accounts Receivable Report and includes the other 200 boxes in
the Inventory Report.

The values in accounts receivable must be the amount due the insured for the commodity
minus the cost, or other basis, of the commodity if the commodity was purchased for resale.
Example:

October 2022

Insured B purchased 200 units of kiwis for resale at a cost of $400. Insured B
sold the 200 units of kiwis for $1,000 but has not received payment. The
Accounts Receivable Report should show $600 ($1,000 – $400) as accounts
receivable for the 200 units of kiwis.

FCIC-18160-1

Accounts Receivable Report (Continued)
If any accounts receivable were previously written off as uncollectable and are not included in
the beginning Accounts Receivable Report but are then collected by the insured during the
insurance period, these accounts receivable will not be included in cash receipts for the
insurance period because they are revenue from the previous year. These amounts should be
removed from the commodity income on the Allowable Revenue Worksheet in the adjustments
to income.
The AIP must not accept any accounts receivable amount if the amount reported for WFRP
purposes cannot be verified through the use of verifiable records and/or direct marketing sales
records.
Refer to Paragraph 146 for instructions on how to handle co-operative cash payments and
allocations.
***

75-90 (Reserved)

October 2022

FCIC-18160-1

PART 4: LOSS AND CLAIM INFORMATION
Section 1 Loss Information
91

Insurable Losses
WFRP provides protection against the loss of approved revenue due to unavoidable natural causes that
occur during the insurance period.
A decline in local market price will be presumed to be from unavoidable natural causes unless FCIC
specifically identifies a man-made cause that resulted in a measurable change in the price. A decline in
local market price due to man-made causes is not an insurable cause of loss.
For the initial year insured, loss of revenue from damage or decline in local market price that occurs
earlier than 10 days after the AIP accepts the application is not covered.
Once the AIP accepts a completed and signed application, as well as all other reports required by
Section 15 of the policy that are due by SCD to the AIP is enough to start the 10-day time frame for
insurance attachment. This will allow the AIP the time needed to properly underwrite the WFRP policy
to determine eligibility and establish the appropriate guarantee for the insured.
For carryover insureds, natural causes that occurred during the previous insurance period that result in
a loss of revenue for the current insurance period are covered.
Exceptions:

Insurance will not be provided for declining prices that continue into the current
insurance period or for changes due to a reduction of irrigation water supply that are
known, or should be known, at the time the IFOR is submitted. For example, farm
operations experiencing a reduction or lack of irrigation water that is known or apparent
prior to when the IFOR is submitted must reduce the amount of acreage to be planted
under the irrigated practice or, if irrigation water is no longer available, record the
commodities as a non-irrigated practice with appropriately reduced yields on the IFOR.
Follow the expected value guidelines for determining expected values at the time the
IFOR is completed when declining prices from the previous insurance period continue
into the current insurance period.

Uninsurable Losses
The following are not covered losses under WFRP:
(1)

Negligence, mismanagement, or wrongdoing by the insured, any member of the insured’s
family or household, or the insured’s tenants, employees, or contractors.

(2)

An act by any person that affects the revenue on the farm operation including, but not limited
to, chemical drift or fire caused by anything other than a naturally occurring event.

(3)

Failure to follow recognized GFPs for each insured commodity.

(4)

Water contained by or within structures that are designed to contain a specific amount of
water, such as dams, locks, or reservoir projects, when such water stays within the designed
limits.

October 2022

FCIC-18160-1

Uninsurable Losses (Continued)
Example:

A dam is designed to contain water to an elevation of 1,200 feet. Insured A plants
a crop on acreage at an elevation of 1,100 feet. A storm causes the water behind
the dam to rise to an elevation of 1,300 feet and floods the crop. The damage to
the crop up to 1,200 feet of elevation is not an insurable cause of loss. However,
damage to the crop above 1,200 feet of elevation is an insurable cause of loss.

(5)

Damage to machinery or equipment.

(6)

Failure to carry out good irrigation practices for an insured commodity, if applicable.

(7)

Failure or breakdown of irrigation equipment or facilities, or the inability to prepare the land for
irrigation using the established irrigation method unless the failure, breakdown, or inability is
due to an unavoidable natural cause.
Important:

Insured must make all reasonable efforts to restore the equipment or facilities to
proper working order within a reasonable amount of time, unless the AIP
determines it is not practical to do so. Cost will not be considered when
determining whether it is practical to restore the equipment or facilities. Failure
of the insured to make all reasonable efforts to restore the equipment and
facilities will result in any loss from the failure or breakdown of the irrigation
equipment or facilities being an uninsured loss.

(8)

Theft, mysterious disappearance, or vandalism of an insured commodity.

(9)

Inability to market the commodities due to quarantine, boycott, diverted acres, or refusal of
any person to accept any insured commodities, including insolvency of the buyer identified in
the marketing contract.

(10)

Lack of labor to properly care for, harvest, or perform any necessary production activities for
any insured commodity.

(11)

Failure to receive payment for produced commodities.

(12)

Failure to follow the requirements contained in any processor contract.

(13)

Abandonment of an insured commodity.

(14)
October 2022

(a)

A commodity the insured has ceased to care for will not be considered abandoned if an
insured cause of loss prevents the producer from properly caring for, harvesting, or
marketing the commodity, or causes damage to the commodity to the extent that most
producers of the commodity in the area with similar characteristics would not normally
further care for or harvest the commodity; and

(b)

The insured’s decision not to harvest a commodity due to low market prices will not be
considered abandonment.

Failure to obtain a price for any commodity that is reflective of the local market value.
FCIC-18160-1

Uninsurable Losses (Continued)
(15)

Deterioration of commodities while in storage that reduces the quality or value, unless the
deterioration was due to damage caused by an insured cause of loss before the commodity was
harvested. Such deterioration by an insured cause of loss must be documented by the insured
and reported to the AIP. The quantity in storage will be valued at an amount not less than the
local market value for the undamaged commodity if:
(a)

the insured fails to notify the AIP of deterioration and cause of damage;

(b)

cause of damage was due to anything other than insured cause of loss; or

(c)

the insured fails to adequately document the damage.

(16)

Production of a commodity, or a quantity of a commodity, which has no verifiable market or
exceeds the amount of production that could be expected to be received by the market under
normal growing conditions.

(17)

Decline in local market prices due to man-made causes.

(18)

Industrial Hemp that is unsalable or destroyed due to a THC level above the maximum
acceptable level.
(a)

The maximum acceptable hemp THC level will be the lesser of: 1) 0.3 percent, allowing
for the measurement of uncertainty provided by the testing laboratory; or 2) the
acceptable level of the applicable governing authority (State or Tribe) in which the
insured crop is grown, allowing for the measurement of uncertainty provided by the
testing laboratory. If the test results provided by the testing laboratory do not include a
measure of uncertainty, the measurement of uncertainty will be considered zero
percent (0.000 percent).
Example:

(b)

If a laboratory reports a result as 0.35 percent with a measurement of
uncertainty of ±0.06, the distribution or range is 0.29 to 0.41 percent.
Because 0.3 percent is within that distribution or range, the sample, and
the lot it represents, is considered hemp as defined. However, if the
measurement of uncertainty for that sample was 0.02 percent, the
distribution or range is 0.33 to 0.37 percent. Because 0.3 percent or less
is not within that distribution or range, the sample is not considered
hemp as defined.

The sale of hemp with a THC level greater than the maximum acceptable level as stated
in (a) will be considered producing and selling a controlled substance and will result in
voidance of the insured’s WFRP policy. Refer to Paragraph 126.

Uninsurable losses will be valued and added to the RTC, which will decrease any loss payments. RTC
must be increased for commodities that are damaged by anything other than an insured cause of loss.
If a commodity deteriorates while in storage and is sold for less than the local market value for the
undamaged commodity, the RTC must be increased by an amount equal to the difference between the
dollar amount received for the damaged commodity and the dollar amount that would have been
received for the commodity using the local market value if it was not damaged.
October 2022
FCIC-18160-1
66

Quality Determinations
When the commodity is damaged (refer to Exhibit 2 for damaged definition) by an insurable cause of
loss, the WFRP policy provides coverage for quality by using the actual price received or the local
market value, not less than zero, for unsold damaged commodities. Refer to Subparagraph 92(15) for
commodities that are in storage.

(1)

If a commodity is damaged by an insurable or uninsurable COL resulting in a reduction of
quality, the insured must comply with their duties detailed in Subparagraph 94A.

(2)

The insured must maintain documentation which includes enough detail to identify the specific
lot, bin, cartons, etc. of the damaged commodity.

Duties in the Event of Damage or Loss
A.

Insured’s Duties in the Event of Damage or Loss
The AIP must instruct the insured of the following duties.

October 2022

(1)

The insured must provide a notice of loss to the AIP within 72 hours of their initial
discovery that the allowable revenue on the farm operation may be less than the
insured revenue or for any physical damage that occurs to any commodity on the farm
operation that may cause the allowable revenue to fall below the insured revenue. The
notice must specify the damaged commodity and document the cause of loss.

(2)

If the insured is not able to market any insured commodity, including refusal of a buyer
to accept a commodity, the insured must provide a notice of loss stating they are unable
to market the commodity and document the reason the commodity cannot be
marketed (e.g., quarantine, failure to meet the requirements of a processor contract,
quality damage, etc.).

(3)

The insured is not required to report general market fluctuations that are not directly
related to the condition or marketability of commodities on the farm operation.

(4)

In case of potential loss of revenue to any insured commodity, the insured must:
(a)

protect the commodity from further damage by providing sufficient care if the
cost of the care will not exceed the value of the commodity; and

(b)

cooperate with the AIP in the settlement or investigation of the claim, and, as
often as the AIP reasonably requires:
(i)

allow the AIP to inspect the damaged commodity;

(ii)

allow the AIP to remove samples and determine the extent of damage;
and

(iii)

provide the AIP with acceptable records and documents requested and
permit the AIP to make copies of those records or documents.
FCIC-18160-1

Duties in the Event of Damage or Loss (Continued)
A.

Insured’s Duties in the Event of Damage or Loss (Continued)
(5)

Farm operations that suffer a reduction of irrigation water due to an insured cause of
loss during the insurance period must be managed consistent with GFP to maximize the
allowable revenue for the entire operation to mitigate, as much as possible, the adverse
impacts of insufficient irrigation water.

(6)

The insured must notify the AIP and obtain the AIP’s consent before abandoning,
disposing of, or destroying any damaged or undamaged insured commodities, or selling
a commodity for any reason other than its intended purpose or to someone other than
a disinterested third party.
(a)

If the AIP does not inspect the insured commodity within 15 days after
notification, the insured may abandon, dispose of, sell, or destroy the insured
commodity without the AIPs consent. THIS IS NOT APPLICABLE TO REPLANTS.

(b)

If the AIP determines that expenses associated with the harvest or preparation
of a commodity would be greater than the allowable revenue from the sale of
the commodity, the AIP will not include the potential revenue of the commodity
when determining RTC if the commodity is not harvested.
(i)

The AIP must determine the associated expenses are consistent with
previous years’ expenses and similar operations.

(ii)

the AIP must verify the insured does not traditionally harvest the
commodity at a cost below the normal cost to harvest the commodity.

Example:

(7)

October 2022

A producer is required to grow a specific variety of fruit that has a
low market value to meet processor requirements. However, due
to unavailability of labor, the producer is unable to harvest the
crop. The unavailability of labor is considered an uninsured COL
and any portion of the commodity not harvested would be
counted as RTC at the expected value.

If the insured fails to comply with any of the notice requirements of the WFRP policy:
(a)

the AIP will consider any loss on the portion of the commodity (damaged acres
or other applicable unit of measure for the commodity) for which the insured
failed to provide notice to be due solely to uninsured causes, with the expected
revenue of the lost commodity included as RTC, unless the AIP determines that
they have the ability to accurately determine the amount and cause of loss; and

(b)

the insured will be required to pay all premiums owed for the policy, including
premium for any portion of the commodity the AIP considers damaged due
solely to uninsured causes.

FCIC-18160-1

Duties in the Event of Damage or Loss (Continued)
B.

AIP Duties in the Event of Damage or Loss
(1)

The AIP will recognize and apply the claim adjustment and other procedures established
or approved by FCIC.

(2)

The AIP will verify completeness and accuracy of the insured’s WFHR, FOR, Beginning
and Ending Inventory, Allowable Revenue Worksheet, Beginning and Ending Accounts
Receivable, and any other verifiable documentation and/or information used to
complete the Claim for Indemnity Form.

(3)

The AIP will use the insured’s farm tax forms and verifiable records requested by the AIP
that were used to create the farm tax forms, to calculate the allowable revenue for the
policy year including any required adjustments, to determine if the insured has an
insurable loss.

(4)

If the insured has complied with all the policy provisions, the AIP will pay the loss for a
replant or for a claim for indemnity within 30 days after:
(a)

agreement is reached with the insured;

(b)

completion of arbitration or appeal proceedings;

(c)

completion of any investigation by USDA, if applicable, of the insured’s current
claim for indemnity if no evidence of wrongdoing is found. (If any evidence of
wrongdoing is discovered, the amount of any indemnity, or replant overpayment
as a result of such wrongdoing may be offset from any indemnity owed to the
insured); or

(d)

the entry of a final judgment by a court of competent jurisdiction.

(5)

In the event the AIP is unable to pay the insured’s loss within 30 days, the AIP will give
the insured notice of their intentions within the 30-day period.

(6)

The AIP may defer, at their discretion, the claim adjustment up to 180 days from the
date determined in Subparagraph 107A(1) when commodities produced during the
insurance period are still in storage or have not been sold.

Replant Payment
(1)

October 2022

To qualify for a replant payment:
(a)

the insured must notify the AIP of the damaged acreage prior to replanting;

(b)

the damaged commodity must be an annual plant;

(c)

the insured commodity must be damaged by an insurable cause;

FCIC-18160-1

Replant Payment (Continued)
(d)

the AIP must determine that it is practical to replant, and give consent to replant;

(e)

the acreage replanted must be at least 20 acres or 20 percent of the insured planted
acreage for the commodity to be replanted;
For commodities planted in different, but distinct growing seasons, determinations of
the 20 acre or 20 percent rule should be made based on the specific planting period for
the commodity.

(2)

October 2022

Example 1:

50 acres of spring bell peppers and 50 acres of fall bell peppers are
reported on the IFOR to be planted on the same 50 acres. 12 acres of
spring bell peppers need to be replanted and the AIP determines that it is
practical to replant. The 20/20 rule for spring planted bell peppers is met
for the 50 acres reported for spring bell peppers.

Example 2:

The insured plants 50 acres of bell peppers and 50 acres of hot peppers in
a 100-acre field. Both are Fresh Market and are both reported under the
commodity code of Peppers (Fresh Market) in Polk County, FL. The
insured needs to replant 12 acres of bell peppers and the AIP determines
that it is practical to replant. However, the 12 acres to be replanted does
not meet the 20/20 rule for the total 100 acres of Peppers (Fresh
Market).

Example 3:

An insured reports and plants 100 acres of winter wheat. On that same
100 acres, the insured reports and intends to plant soybeans. The winter
wheat is harvested, and the soybeans are planted as intended. 25 acres
of the soybeans are lost due to an insured cause of loss and need to be
replanted and the AIP determines that it is practical to replant the acres.
The 25 acres to be replanted meet the 20/20 rule of the double cropped
soybean acreage.

(f)

the insured must submit verifiable records that show their actual cost of replanting; and

(g)

the AIP may inspect the acreage prior to making the replant payment.

No replant payment will be made:
(a)

if the AIP is unable to determine the insured’s actual replanting costs;

(b)

on acreage on which one replant payment has already been allowed for the insurance
period;

(c)

for any commodity on the farm operation that is also insured by another Federally
reinsured policy issued under the authority of the Act for which replant payments are
also available under the other policy;

(d)

for industrial hemp; or
FCIC-18160-1

Replant Payment (Continued)
(e)

until a RFOR is submitted.

(f)

for any commodity insured under Micro Farm.

A Replant Payment Worksheet must be completed if the insured qualifies for a replant payment. In
the Narrative Section of the worksheet or on a Special Report, document how the qualifications for a
replant payment have been met.
(3)

The determination of the maximum amount of the replant payment per acre will be based on
the lesser of:
(a)

the actual cost, before share, to replant the commodity; or

(b)

20 percent of the expected revenue per acre for the commodity as reported in the RFOR
(column 14E/14A) multiplied by the coverage level.

As shown in the following example, the maximum amount of the replant payment is multiplied by the
share recorded in item 14C of the RFOR. Show all calculations in the Narrative section of the Replant
Payment Worksheet or on a Special Report.
Example:

50 acres of commodity replanted
Expected Revenue per acre guarantee = $750 (column 12 of the FOR)
Actual cost per acre to replant prior to share = $75.00 (verified from actual records)
Maximum Replant Amount: 20% of the expected revenue per acre multiplied by
coverage level= $127.50 ($750 per acre guarantee × 20%) × 85%
The lesser of $75.00 or $127.50 is $75.00.
Replant Payment = $3,750 ($75.00 × 50 acres) × 1.000 (share)
Enter the replant calculations in the “Narrative” of the Replant Payment Worksheet.

96-100 (Reserved)

October 2022

FCIC-18160-1

Section 2 Claim Information
101

Adjustments to Revenue
A.

General Information
Adjustments to revenue are required for claim purposes regardless of the accounting method,
cash or accrual, used by the insured. For claims purposes, revenue will be considered earned
regardless of whether the revenue is reported to the IRS during the tax period applicable to the
policy year. Refer to Paragraph 7 for information about cash and accrual accounting methods.
Adjustments to revenue for increases and decreases in inventory or accounts receivable for the
policy year are made by subtracting the beginning balance from the ending balance. Positive
amounts are added to the allowable revenue and negative amounts are subtracted. Refer to
Subparagraph 101B and the Claims for Indemnity Form for adjustments for inventory and
accounts receivable.

Adjustments for Accounts Receivable
Determine the amount to add to or subtract from to the insured’s allowable revenue for the
policy year by subtracting the beginning balance of accounts receivable from the ending
balance of accounts receivable for the policy year. Values shown on the Accounts Receivable
Report will not include the cost of the commodity being valued if the commodity was
purchased for resale.
Accounts receivable from previous years that were determined to be uncollectable and were
not reported as Beginning Accounts Receivable, but that are collected by the insured during the
policy year will not be included in cash receipts for the policy year. Any amounts reported on
the farm tax form as revenue should be adjusted out of the revenue on the Allowable Revenue
Worksheet. The beginning balance of all accounts receivable must not include the cost, or
other basis, of the commodity if the commodity was purchased for resale.
Example:

Insured B purchased 200 units of Mums for resale. The 200 units cost $400.
Insured B sold the 200 units of Mums for $1,000 but has not received payment.
Insured B should report $600 ($1,000 – $400) as the beginning accounts
receivable for the 200 units of Mums.

Refer to Paragraph 74 for information about accounts receivable.
Sum the balances (column 9 of Part 2) on the Accounts Receivable Report. Negative numbers
will make the number smaller, positive numbers will make the number larger. The final result
may be positive or negative. The final result is put in item 23 on the Claim for Indemnity Form.

October 2022

FCIC-18160-1

101

Adjustments to Revenue (Continued)
B.

Adjustments for Accounts Receivable (Continued)
Example:

Insured A reports $50,000 revenue for the policy year. Insured A reports a loss
under WFRP and had $6,000 beginning balance and $12,000 ending balance on
the Accounts Receivable Report for the policy year. The AIP subtracts the
beginning accounts receivable from the ending accounts receivable to get
+$6,000 ($12,000-$6,000). This number will be entered in box 23 of the on the
Claims form and will be added to the allowable revenue for the insured year
because it is a positive number.

Adjustments for Inventoried Commodities Not Held to Realize a Gain
The insured’s revenue for the policy year must also be adjusted based on the amount and value
of commodities in the insured’s beginning and ending inventory. The value of the beginning
inventory is subtracted from the value of the ending inventory to calculate the adjustment.
This amount is then entered on the Claim for Indemnity Form in item 26. If it is a positive
number the amount will be added to the allowable revenue for the policy year, if it is a negative
number the amount will be subtracted from the allowable revenue for the policy year.
Example:

102

Insured A has $50,000 allowable revenue for the policy year. Insured A reports a
loss under WFRP and has the following: Beginning inventory of 6,000 units of
commodity B that was produced in the prior year; Ending inventory of 500 units
of commodity A valued at $2.00 per unit, and 1,000 units of commodity B valued
at $1.00 per unit, all of which was produced during the policy year. The 6,000
units of commodity B that were produced in prior year was sold for $1.00 per
unit during the policy year. The table below shows the inventory adjustment ($4,000), which is transferred to Box 22 of the claims form to adjust the allowable
revenue for the policy year to $46,000 ($50,000-$4,000).

(Reserved)

***
103

Changes Occurring Within Policy Year
A.

Effect of Changes

At the time a claim is filed, the AIP must evaluate the effect of any unreported changes that
affects the approved revenue. The AIP must obtain, from the insured, documentation
indicating the reasons for discrepancies identified between the information provided on the
RFOR and the Claim for Indemnity Form when a claim is filed.
October 2022
FCIC-18160-1
73

103

Changes Occurring Within Policy Year (Continued)
A.

Effect of Changes (Continued)
Based on the documentation provided and the evaluation conducted, the AIP must determine
whether the approved revenue should be reduced, or liability denied according to the WFRP
policy. Reducing the approved revenue will require revising the FOR.
A reduction in approved revenue or a denial of liability is not required when a commodity is not
planted due to an unavoidable natural cause, such as a flood, which prevents the crop from
being planted. When a comparable alternative commodity is established to replace the
prevented commodity after the natural disaster, then an adjustment in revenue is required.
Structural changes may affect the approved revenue for the insured. A structural change of the
insured’s farm operation is any change that alters the insured’s revenue compared to the
insured’s whole-farm historic average revenue including, but not limited to, changes in:
(1)

ownership;

(2)

business structure;

(3)

size of operation;

(4)

management practices;

(5)

type of farm operation; and

(6)

accounting methods.

Other changes in the insured’s farm operation can also affect the approved revenue. Such
changes include, but are not limited to:

(1)

intended commodities not planted;

(2)

different commodities planted than were intended;

(3)

significantly more or fewer acres planted than intended; and

(4)

change in the share of the commodity(s) by the insured.

Farm Operation Report Revisions
The AIP must correct the approved revenue and indemnity, when applicable, if the RFOR
requires revision and the total expected revenue changes. ***
The AIP may deny liability if the information used to determine approved revenue is
determined to be incorrect.

October 2022

FCIC-18160-1

104

Changes That Occurred in Year Prior to Policy Year
Structural changes that occurred prior to the current policy year must be identified on the current
year’s FOR and reflected in the total expected revenue for the current policy year. Refer to Paragraph
103 for description of possible structural changes.

105

Damage and Price Fluctuation That Occurred in the Year Prior to the Policy Year
A.

New Insureds
WFRP does not provide coverage for losses that occur earlier than 10 days after the AIP
receives a completed application. The expected revenue reported for the policy year must not
include any amount that was lost because of such damage or price fluctuation.

Carryover Insureds
There is no lapse in WFRP coverage between the previous insurance period and the current
insurance period for carryover insureds, provided all requirements are met. Loss of revenue in
the current insurance period resulting from damage to insured commodities or price
fluctuations from unavoidable natural causes that occurred in the previous insurance period are
covered if all other WFRP requirements are met, including GFPs.
Exception:

Insurance will not be provided for changes due to a reduction of irrigation water
supply that are known, or should be known, at the time the IFOR is submitted.
Refer to Paragraph 91.

However, any revenue lost because of damage or price fluctuations will only be covered the
year immediately following the insurance period when the loss occurred and will not be
covered for subsequent years.
Example:

106

Producer A’s perennial crop suffered ice damage during the winter of 2022 that
will cause a loss of revenue from the crop in 2023. The damage did not affect
2022 revenue. Producer A was insured under WFRP for 2022, will continue
coverage in 2023, and met all WFRP requirements, including GFPs. The total
amount of revenue expected for the perennial crop before the ice damage may
be reported as expected revenue on the 2023 FOR. However, beginning with the
2024 policy year, any loss of revenue from the ice damage that occurred in 2022
will not be covered. The expected revenue reported for the perennial crop in
2024 and subsequent policy years must not include any amount that was lost
because of the 2022 ice damage.

Revenue-to-Count
RTC is the allowable revenue produced successfully in the insurance period. It also includes revenue
amounts determined to be produced by the inventory adjustments, accounts receivable adjustments,
revenue representing any uninsurable losses, value assigned for abandoned commodities, indemnities
from other crop insurance policies, and net gains from commodity hedging or speculation.

October 2022

FCIC-18160-1

106

Revenue-to-Count (Continued)
The following provides the steps for calculating RTC:
(1)

Determine insured’s allowable revenue for the policy year.

(2)

Adjust the allowable revenue determined in step one, if applicable.

(3)

Adjust the allowable revenue determined in step two by adding or subtracting, as applicable,
required adjustments for accounts receivable.

(4)

Adjust the allowable revenue determined in step three by adding or subtracting, as applicable,
required adjustments on Inventory Report for commodities not held to realize a gain.

(5)

Adjust the allowable revenue determined in step three by adding or subtracting, as applicable,
required adjustments on Inventory Report for commodities not held to realize a gain.

(6)

Add all values assigned for uninsured causes of loss to the allowable revenue determined in (5).

(7)

Add the value assigned to abandoned acreage/commodities to the allowable revenue
determined in (6).

(8)

Add any net gain from commodity hedging and speculation, not less than zero, to the allowable
revenue determined in (7).

(9)

Add the total of any indemnity received from an insurance policy covering insured commodities
authorized under the Act which covers commodities insured under WFRP, that applies to the
portion of the commodity insured under WFRP, to the allowable revenue determined in step
eight.
Exceptions:

(10)

October 2022

Do not include:
(a)

ARC/PLC payments;

(b)

Replant payments; or

(c)

indemnities paid by another policy for damage or loss to a commodity
that is not covered by WFRP such as timber, animals for show, pasture or
rangeland insured under the Rainfall Index or Vegetation Index policies,
or commodities or portions of commodities produced for feed for use on
the insured’s operation.

Add any expense amount which reduced the price the insured received for a commodity that
were not considered when determining the expected value of that commodity to the allowable
revenue determined in step 9. Unless it is determined that the reduction was due to an
insurable COL occurring prior to the harvest or EOIP on the commodity (for example, if the price
you receive for a commodity is reduced to expenses such as assessments, seed costs, or drying
expenses, but the expected value established for the commodity was not reduced by such
expenses, those expenses will be added as RTC).
FCIC-18160-1

106

Revenue-to-Count (Continued)
Example:

(11)
107

A producers sells his corn production to an elevator; the elevator normally
charges five cents per bushel for drying costs and deducts that amount from the
final settlement payment. The producer reports the net settlement on his tax
returns. If the expected value of the corn is adjusted for the drying expense on
the IFOR, then the expense will not be considered RTC at claim time. However, if
the drying expenses exceed the five cents, the amount exceeding the five cents
will be considered RTC.

Add any NAP payments and indemnities from insurance policies not authorized under the Act
that exceed the deductible. ***

Indemnities
A.

Claim for Indemnity
(1)

A claim for indemnity declaring the amount of loss must be submitted to the AIP no
later than 60 days after the earlier of the:
(a)

date the insured filed their taxes with the IRS; or

(b)

original date the insured’s farm tax forms for the policy year must be provided to
the IRS, as specified by the IRS, except as provided in 2(b) below.

Reminder:

(2)

The AIP may defer, at their discretion, the final claim adjustment up to 180 days
from the date determined in A(1) when commodities produced during the
insurance period are still in storage or have not been sold.

The insured must:
(a)

complete and file their farm taxes with the IRS before they submit a claim for
indemnity; and

(b)

file their farm taxes on or before the first day of the 7th month after the end of
the insurance period unless they have requested a Federal tax return filing
extension.
If the insured has requested a Federal tax return filing extension:
(i)

(ii)

October 2022

submit a claim for indemnity declaring the amount of loss no later than
60 days after the earlier of the date the:
(A)

insured filed their taxes with the IRS; or

(B)

final extended tax due date;

provide a copy of their request for an extension, Federal tax return
showing the date it was signed, or proof of mailing showing the date the
return was filed; and
FCIC-18160-1

107

Indemnities (Continued)
A.

Claim for Indemnity (Continued)
(iii)

file their taxes on or before the final extended tax due date.

The AIPs may require the insured to request IRS send the AIP verification of the
date insured’s return was filed.
B.

Changes to Filed Federal Taxes
Any change to filed Federal tax returns within three years after a claim was settled may require
an adjustment to the amount of indemnity paid.
The AIP must correct the insured’s indemnity, approved revenue, and WFRP database when a
change is made to the insured’s filed Federal tax returns that results in a five percent or greater
change to the insured’s approved revenue or RTC for the applicable policy year. ***
Changes made to filed Federal tax returns include changes made because of amended returns
or IRS audits.

Claims on an Accrual Basis
All claims for indemnity must be calculated on an accrual basis. The result of the calculations
under the policy through the adjustments, inventory, and accounts receivable will be to remove
production from previous years and to count production for the insured year. ***

Settlement of Claim
A claim cannot be settled until:

(1)

the insured’s Federal taxes for the policy year are filed; and

(2)

any indemnities are received, if applicable, from all other Federally reinsured policies
covering commodities insured under WFRP for the policy year. Copies of complete
claim forms must be provided to the AIP if these indemnities are paid by another.

Calculating Indemnity
An indemnity is earned when the RTC for the policy year is less than the insured revenue and
losses are due to insurable causes of loss.
The following provides the steps for calculating an indemnity. Refer to Exhibit 15 for the Claim
for Indemnity Form.
***

October 2022

FCIC-18160-1

107

Indemnities (Continued)
E.

Calculating Indemnity (Continued)
(1)

Multiply the insured’s approved revenue by the insured’s coverage level to calculate the
Insured Revenue for the year. ***

(2)

Determine the amount of NAP payments and indemnities from insurance policies not
authorized by the Act that exceed the deductible.

(3)

Determine the insured’s Allowable Revenue for the policy year on the Allowable
Revenue Worksheet using the farm tax forms for the policy year and enter this on the
Claims Form.

(4)

Positive and negative numbers for the Inventory adjustment, Accounts Receivable
adjustment, Market Animal and Nursery adjustment, and All other adjustments are
entered on the Claims form and added or subtracted from the result of (3) depending
upon the sign.

(5)

Subtract the insured’s RTC from (4) from the insured revenue to determine the Revenue
Loss which is the indemnity to be paid.

108-120 (Reserved)

October 2022

FCIC-18160-1

PART 5: ADMINISTRATIVE PROVISIONS
121

Assignment of Indemnity
Insureds may assign the right to an indemnity for the policy year only to creditors or other persons to
whom they have a financial debt or other monetary obligation. The procedures in the GSH regarding
the assignment of indemnities apply.

122

Transfer of Coverage
Because WFRP is based on the insured’s income tax information, a transfer of coverage to any other
person will not be allowed unless in the case of death, disappearance, judicially declared
incompetence, or dissolution of an insured person.
If the farm operation or any part of the farm operation is sold after the RFOR is submitted, coverage
will not be transferred, and the insured will still be required to pay the premium due.
If part or all the ownership/share of an insured commodity is transferred after the RFOR is submitted,
coverage for that commodity will not be transferred, and the insured will still be required to pay the
premium due. If the ownership/share changes prior to the RFOR deadline, the insured commodity will
be removed from FOR. At claim time, the RTC for the portion of insured commodity transferred after
the RFOR is submitted will be not less than the expected revenue reported on the RFOR.

123

Other Insurance and NAP
(1)

The insured may insure the same commodity under WFRP and under another FCIC plan of
insurance, if available, at any buy-up level of coverage (and any price percentage), unless
otherwise specified in the Special Provisions or not allowed by the other policy.

(2)

Any other crop insurance policy authorized under the Act purchased by the insured that insures
commodities covered by WFRP will be considered the primary insurance, and any indemnity
payment received from such policy will be included as RTC.

Exception:

(3)

Insureds may obtain NAP and other insurance not authorized under the Act on commodities
insured under WFRP. Any NAP payments and indemnities the insured receives from such
insurance policies not authorized under the Act will not be considered RTC under the WFRP
policy unless the total of all such payments and indemnities exceeds the insured’s deductible. If
the total of all such indemnities exceeds the insured’s deductible, determine the amount to
include as RTC as follows: ***
(a)

October 2022

The insured is not eligible for Micro Farm coverage if any commodity on their farm
operation is insured by another FCIC plan of insurance issued under the authority of the
Act, including WFRP.

Sum all payments and indemnities received by the insured from NAP and insurance
policies not authorized under the Act for damage to commodities insured under the
WFRP policy;

FCIC-18160-1

123

Other Insurance and NAP (Continued)
(b)

Determine the insured’s deductible; and ***

(c)

Subtract the result of (b) from the result of (a).

Example:

124

The insured’s WFRP deductible is $32,500. The insured received a $30,000 payment
from NAP and $5,000 indemnity from a policy not authorized under the Act. ***
$35,000

($30,000 + $5,000) Total payments and indemnities

-$32,500

Insured’s deductible ***

$2,500

RTC

Commodities as Payments
The AIPs must not accept any commodity as compensation for payment due them from insureds.

125

Mediation, Arbitration, and Judicial Reviews of AIP Determinations
The procedures in the GSH apply for:

126

(1)

mediation, arbitration, and judicial reviews of AIP determinations;

(2)

disputes regarding the AIP decisions of what constitutes a GFP; and

(3)

disputes regarding RMA determinations of what constitutes a GFP.

Controlled Substance Provisions
(1)

The WFRP policy will, as determined by the court, be void if the insured is convicted under
Federal or state law of possession of or trafficking in a controlled substance. When a policy is
voided due to a conviction of a controlled substance provision:
(a)

no indemnities or payments will be paid for the voided policy;

(b)

all indemnities or payments already made for the voided policy will be declared
overpayments and must be repaid in full; and

(c)

any premium paid must be refunded, less an amount equal to 20 percent of the
premium the insured would otherwise be required to pay, to offset costs in the servicing
of the policy.

Refer to the Ineligible Tracking System Handbook (FCIC-24050) for more information.
(2)

October 2022

Controlled substances are not insurable under WFRP and the insured’s farm operation will not
be eligible for WFRP if they produce any controlled substance, regardless of the legal status of
the substance in the state where the commodity will be produced.

FCIC-18160-1

126

Controlled Substance Provisions (Continued)
Example:

Insured produces industrial hemp. Upon sampling and testing, the THC level is
0.301 percent. The state in which the insured produced the hemp allows the
sale of hemp up to THC levels of 0.399 percent. For the purposes of WFRP, the
sale of hemp with a THC level greater than 0.3 percent, as determined by a USDA
approved laboratory, will be considered a controlled substance, and will result in
voidance of the WFRP policy.

127-140 (Reserved)

October 2022

FCIC-18160-1

PART 6: SPECIAL CIRCUMSTANCES
141

Organically Grown Commodities
Prices for individual commodities grown under an organic practice are not determined for operations
insured under Micro Farm. Therefore, the following procedures in Paragraph 141 are not applicable to
Micro Farm.
A.

Insurability
WFRP insured revenue includes revenue from commodities produced on certified organic
acreage under an organic plan. If such certified organic production is sold as conventional
production at a conventional price, the reduction in value received will be due to an uninsured
COL. Revenue from commodities produced on transitional organic acreage must be listed on a
separate line of the FOR and identified with the “Method of Establishment” code for
transitional organic acreage.

Expected Values
Organic prices can be used as expected values for certified organic animals, animal products,
and acreage only. Organic prices do not apply to transitional or buffer zone acreage. Insureds
that have an organic certificate or documentation they have requested, in writing, a
certification or other written documentation from a certifying agent by the RFOR deadline, are
eligible to receive an organic price for their commodities grown on certified organic acreage.
Organic prices can be used if:
(1)

the insured has an organic certificate or documentation they have requested, in writing,
a certification from a certifying agent as indicated by the National Organic Program
website (organic.ams.usda.gov/Integrity/) and provided to the AIP by the time the RFOR
is due. If the farm was certified organic previously and the producer has not received
the updated certification yet, the previous certification may be used. However, if a
claim is filed, the insured must have received a valid certificate dated prior to harvest
and provide a copy to the AIP; or

(2)

the operator or tenant has an organic certificate.
Exception:

October 2022

The National Organic Program standards require the certifying agent to
issue a certificate for the organic operation. However, an organic
certificate may not be issued every year; therefore, it is possible an
insured’s organic certificate may not list every crop they intend to plant
in the insurance period.

FCIC-18160-1

141

Organically Grown Commodities (Continued)
B.

Expected Values (Continued)
Example:

Insured A was issued an organic certificate in 2019 that lists corn, oats,
and wheat. Insured A reports they intend to plant canola and flax on the
certified organic acreage in 2020. The organic plan has not been updated
for 2020 to include canola or flax, and the mentioned crops are not listed
on the 2019 organic certificate. The category on Insured A’s organic plan
is “crops.” Therefore, as long as the canola and flax are grown on
certified acreage identified in the organic plan (not transitional or buffer
zone), organic prices can be used to determine their expected value.

The FOR will be marked to show which commodities are certified organic. If the AIP questions
the organic acreage and requests to see the Organic Plan, the insured must be willing to show
the AIP the Organic Plan to verify locations of their certified organic land.
C.

Organic Requirements
The current organic plan and organic certificate in effect must be from a certifying agent, and
must provide the:
(1)

name, address, and telephone number of the person(s) or operation certified;

(2)

effective date of certification, or certificate;

(3)

certificate number;

(4)

types or categories of commodities;

(5)

name and address of the certifying agent; and

(6)

location and number of the certified organic acres (organic plan only).

An organic certificate issued to an operator/tenant may be used to qualify the same acreage for
a landlord or other similar arrangement.
D.

National Organic Program Exception
The National Organic Program standards allow a grower whose annual gross agricultural
revenue from organic sales is $5,000 or less to be exempt from certification. If a farm can show
that they have the organic plan in place to grow organic crops and their revenue from organic
sales is less than $5,000, then they may use organic prices and the farm will be considered to be
certified under WFRP.

October 2022

FCIC-18160-1

141

Organically Grown Commodities (Continued)
E.

Change in Farm’s Organic Certification
If any acreage qualifies as certified organic on the date the RFOR is completed, and the
certification is subsequently surrendered by the farm, suspended, or revoked, the acreage or
animals or animal products will remain insured for the year, but the expected values should be
revised from organic expected values to non-organic expected values.

Contamination by Prohibited Substances
Contamination by application or drift of prohibited substances onto land on which commodities
are grown using organic farming practices is considered an uninsured cause of loss on any
certified organic acreage.

Documentation Required
The insured is required to provide the AIP with a copy of the organic certificate or
documentation the insured has requested, in writing, a certification by the RFOR deadline if
expected values will be based on organic prices. If the AIP has reason to request a copy of the
organic plan, the insured must provide a copy of the organic plan. The organic plan may be a
large document and copies should not be requested unless there are specific concerns.
Copies of the producer’s written organic certificate must be valid at the time a loss claim is
submitted, and organic prices are used. If the insured does not have a valid certificate at claim
time, the insured revenue will be recalculated without the organic expected values and any
expanded operation factor attributed to having a valid certification will be revised accordingly.
If the insured is a newly certified organic grower and is using the process of documenting their
request for certification, in writing, from a certifying agency for acreage that will have an
effective date after the RFOR due date but prior to harvest, the insured must have an effective
certification date prior to harvest of the crop. If the insured’s certification does not have an
effective date prior to harvest, the expected revenue will be recalculated using the non-organic
expected values.

142

Post-Production Operations and Market Readiness
The cost of post-production operations, excluding those expenses considered to be market readiness
operations under the WFRP policy, must be removed from allowable revenue. Added value from postproduction operations is also not insurable under the WFRP policy and must be removed from
allowable revenue. For Micro Farm, the cost of post-production operations may be included in
allowable revenue; however, if post-production costs are not included in allowable revenue, they must
not be included the micro farm expected value and RTC. ***
(1)

Post-production operations consist of costs from activities that occur after harvest of the crop
to get the crop ready for the targeted market. These activities either:
(a)

have expenses associated with them such as:
(i)

October 2022

sorting, grading, washing, waxing, labelling, and trimming;
FCIC-18160-1

142

Post-Production Operations and Market Readiness (Continued)

(b)

(2)

(ii)

packaging materials, such as boxes, cartons, and bags;

(iii)

packing of commodities after they are harvested, including in-field operations;

(iv)

cold and controlled atmosphere storage; or

add value to the crop due to the activities performed such as:
(i)

the value of wine compared to the grapes;

(ii)

the value of gift baskets of commodities compared to the individual raw
commodity prices;

(iii)

The value of juicing or processing into jams or relish compared to the harvested
fruit; or

(iv)

The value of bonsai or braided ornamental trees compared to the containerized
tree with no added value.

Post-production operations that meet the following requirements as market readiness costs do
not have to be deducted from the allowable or expected revenue. Costs that can be considered
market readiness costs must:
(a)

be the minimum required to remove the commodity from the field and make it market
ready;

(b)

be performed:

(c)

(i)

in the field; or

(ii)

on land within a reasonable proximity to the field; and

not add value to the commodity.

The added value of products made from insurable commodities, such as wine made from grapes, is not
insurable under WFRP and must be excluded from the expected or approved revenue. The value of the
insurable commodity prior to making it into other products may be insured and reported as expected
revenue if adequate records are available to determine the production and value of the insurable
commodity.
Example:

October 2022

Insured A reported $1,200,000 gross revenue for the 2020 tax year. Insured A’s records
indicated the following revenue: $100,000 from grapes made into wine, $750,000 from
the sale of wine, $50,000 from the sale of grapes not used for wine, and $300,000 from
the sale of other insurable fruits and vegetables. The fruits and vegetables and grapes
not used for wine had post-production costs of $42,000. The allowable revenue for the
tax year is $408,000 ($100,000 + $50,000 + $300,000 – $42,000).
FCIC-18160-1

142

Post-Production Operations and Market Readiness (Continued)
Premium rates have been established for raisins, prunes, and cured/dried tobacco. Prunes and raisins
are separate insurable commodities from plums and grapes and are eligible commodities under WFRP.
Expenses associated with the curing or drying of tobacco to prepare the tobacco for market and drying
of prunes and raisins are not subtracted from the market price to determine the local market value.

143

Animals
A.

Eligibility
Expected revenue from animals and animal products will be limited to $2 million. If the
expected revenue exceeds the $2 million limit, the expected revenue will be capped at the $2
million limit. This limit does not apply to animal and animal products that qualify as
aquaculture commodities. Refer to Subparagraph 143G for determination of animals and
animal product expected revenue and capping procedures. Animals and Animal Product
commodity codes are listed in the AD as animals and animal products.

Expected Value
Local market prices for the same breed and type of animals being valued should be used as
expected values, following the expected value guidelines. A commodity code may be used
more than once to indicate animals that have varying prices due to different sex, weight, breed,
market etc., such as feeder heifers, feeder steers, and fat heifers.

Expected Yield
Expected yields for animals that are raised from birth and listed on a per head basis should take
into consideration, for example cow/calf operations, the normal historical pregnancy and
calving percentages of the operation. These percentages will vary based upon the breed, the
location, the time of the year calving occurs, and the management practices of each operation.
For some types of animals, births of multiple off-spring can occur and need to be considered.

Expected Revenue from Animals and Animal Products
Expected revenue must be adjusted by removing the cost or basis of the market animals onhand at the beginning of the insurance period or purchased for resale from the amount of
expected revenue on the FOR. The Market Animal and Nursery Inventory Report is used to
document these numbers for the IFOR.

Inventory Adjustments to Revenue
The Market Animal and Nursery Inventory calculates the change in values over the insurance
period for claims, using increases and decreases in inventory values during the tax year, less the
cost or basis for animals purchased during the insurance period.
(1)

Animals must be grouped according to the type/category of intended market. Local
market value is determined for each type/category at the:
(a)

October 2022

beginning of the insurance period for beginning inventory; and
FCIC-18160-1

143

Animals (Continued)
E.

Inventory Adjustments to Revenue (Continued)
(b)

end of the insurance period for ending inventory.

A beginning inventory must be completed for each type/category of animal on hand at the
beginning of the insurance period. An ending inventory must be completed for each
type/category of animal on hand at the end of the insurance period.
(2)

To determine inventory values:
(a)

for animals sold by weight, multiply the number of animals in the specific
type/category by the average pounds per animal in the specific type/category;
and multiply this by the price per weight unit for the specific type/category; and

(b)

for animals sold by the head, multiply the number of animals in the specific
type/category by the average price per head for the specific type/category.

Gain or Loss from Sale of Breeding Animals or Culled Animals
Animals kept as breeding stock that the insured does not intend to sell, including culls, during
the insurance period are not included in the insured revenue. Gains or losses in the value of
breeding animals that will not be sold during the insurance period should not be included in the
totals on the inventory sheets. This inventory can be used to support the number of market
animals and to document culled breeding animals, so they can be removed from the approved
revenue.
Sales of breeding stock, including culls, are normally reported on Form 4797 (Sale of Business
Property). Such income should not be reported on Schedule F but may be. However, there
may be instances where culls are placed in a finishing operation and may be reclassified as
market animals. Any culls that are reclassified as market animals and the sale of such animals is
reported on the Schedule F, adjustments to the beginning inventory and the FOR are required.
Otherwise, the sale of breeding animals or culls that is reported on Form 4797 are considered
uninsured animals and not included as allowable revenue or RTC.

Capping Animal and Animal Product Expected Revenue on Intended and Revised Farm
Operation Reports
To determine if an insured has more than the allowed amount of animal and animal product
revenue, excluding animal and animal products that qualify as aquaculture commodities:

October 2022

(1)

Total the expected revenue on the IFOR or RFOR for all animals and animal products.

(2)

If the result of (1) is greater than $2 million then:
(a)

subtract the $2 million from the result of (1);

(b)

divide the result of (2)(a) by the result of (1), rounded to six decimal places;
FCIC-18160-1

143

Animals (Continued)
G.

Capping Animal and Animal Product Expected Revenue on Intended and Revised Farm
Operation Reports (Continued)
(c)

subtract the result of (2)(b) from 1.000; and

(d)

multiply the result of (2)(c) by the expected revenue of each animal commodity
and/or animal product shown on the FOR.

The result will be the capped amount. The total may not equal $2 million due to
rounding.
Example:

Revenue from animals and animal products exceeds the $2,000,000 maximum:
Total Expected Revenue is $3,000,000. Maximum $2,000,000 limit on animals &
animal products.
Cattle $700,000
Hogs $750,000
Sheep $230,000
Poultry $400,000
Total $2,080,000

($80,000 over the $2,000,000 limit)

$80,000 ÷ $2,080,000 = 0.038462
1.000 – 0.038462 = 0.961538
Cattle $700,000 × 0.961538 = $673,077
Hogs $750,000 × 0.961538 = $721,154
Sheep $230,000 × 0.961538 = $221,154
Poultry $400,000 × 0.961538 = $384,615
Total $2,000,000
Only the Total Expected Revenue of each commodity on the RFOR will be changed. However,
all allowable revenue produced from the animals and animal products will count as RTC.

October 2022

FCIC-18160-1

144

Nursery/Greenhouse
A.

Eligibility
Expected revenue from nursery/greenhouse commodities will be limited to $2 million. If the
expected revenue exceeds the $2 million limit, the expected revenue will be capped at the $2
million limit. This limit does not apply to commodities that qualify as aquaculture commodities.
Refer to Subparagraph 144F for determination of nursery/greenhouse expected revenue and
capping procedures. This limit only applies to the Nursery/Greenhouse (0073) commodity
code.
Items placed under this commodity code should be similar to those insured under the FCIC
nursery plan of insurance. There are other commodity codes for other specific types of plants,
but these are not considered in the nursery/greenhouse limit.

Expected Value
Local market prices for nursery/greenhouse commodities being valued should be used as
expected values, following the expected value guidelines. The Market Animal and Nursery
Inventory Report can be used to list each type of plant and sum to a total for
nursery/greenhouse commodities for the FOR.

Expected Revenue from Nursery/Greenhouse Commodities
Expected revenue must be adjusted by removing the cost or basis of the nursery/greenhouse
commodities purchased from the amount of expected revenue on the FOR. The Market Animal
and Nursery Inventory Report is used to document these numbers for the IFOR.

Plants must be grouped according to the type/category of how they will be marketed.
Local market value is determined for each type/category at the:
(a)

beginning of the insurance period for beginning inventory; and

(b)

end of the insurance period for ending inventory.

A beginning inventory must be completed for each type/category of plant on hand at
the beginning of the insurance period. An ending inventory must be completed for each
type/category of plant on hand at the end of the insurance period.
(2)

October 2022

Inventory values will be determined by multiplying the number of plants in the specific
type/category by the average price per plant for the specific type/category.

FCIC-18160-1

144

Nursery/Greenhouse (Continued)
D.

Inventory Adjustments to Revenue (Continued)
The value of commodities in inventory at the end of the insurance period that were
purchased for resale during the insurance period must not include the cost, or other
basis, paid for the commodity.
Example:

A plant in ending inventory was purchased for resale. The plant cost $5.00. The
local market value of the plant at the end of the insurance period is $12.00. The
$5.00 cost of the plant must be deducted from the value of the plant. Therefore,
the value of the plant for the ending inventory is $7.00 ($12.00 – $5.00).

Revenue from Plants held In Inventory to Realize Gain
Some commodities may be held in inventory for more than one year to realize a gain in revenue
from the increase in maturity or size of the plant. The increase in the value of such plants must
be counted as revenue for the year even though the plants were not sold.
Example:

Insured A has 200 plants they are going to hold in inventory for two years. They
are holding these plants to obtain a higher price for the plants when they have
matured to larger size. The first year they are in inventory the plants increased
in value by $2.00 per plant. The increase in value of $400 (200 plants × $2.00)
must be reported as revenue for WFRP purposes for that insurance period.

Capping Nursery/Greenhouse Revenue on Intended and Revised Farm Operation Reports
To determine if an insured has more than the allowed amount of nursery/greenhouse revenue,
excluding nursery/greenhouse products that qualify as aquaculture commodities:
(1)

Total the expected revenue on the IFOR or RFOR for all nursery/greenhouse
commodities.

(2)

If the result of (1) is greater than $2 million then:
(a)

subtract the $2 million from the result of (1);

(b)

divide the result of (2)(a) by the result of (1), rounded to six decimal places;

(c)

subtract the result of (2)(b) from 1.000; and

(d)

multiply the result of (2)I by the expected revenue of each nursery/greenhouse
commodity shown on the RFOR.

The result will be the capped amount. The total may not equal $2 million above due to
rounding.
Example:

October 2022

Revenue from Nursery/Greenhouse commodities exceeds the $2,000,000
maximum:
FCIC-18160-1

144

Nursery/Greenhouse (Continued)
F.

Capping Nursery/Greenhouse Revenue on Intended and Revised Farm Operation Reports
(Continued)
Total Expected Revenue is $3,000,000. Maximum $2,000,000 limit on
Nursery/Greenhouse commodities.
Plant 1 $700,000
Plant 2 $750,000
Plant 3 $230,000
Plant 4 $400,000
Total $2,080,000

($80,000 over the $2,000,000 limit)

$80,000 ÷ $2,080,000 = 0.038462
1.000 – 0.038462 = 0.961538
Plant 1 $700,000 × 0.961538 = $673,077
Plant 2 $750,000 × 0.961538 = $721,154
Plant 3 $230,000 × 0.961538 = $221,154
Plant 4 $400,000 × 0.961538 = $384,615
Total $2,000,000
Only the Total Expected Revenue of each commodity on the IFOR and RFOR will be changed.
However, all allowable revenue produced from the Nursery/Greenhouse commodities will
count as RTC.
G.

Adjustments to Revenue
Increases and decreases in inventory values of nursery commodities will be used to adjust the
insured’s revenue for the policy year for claims purposes. Refer to Exhibit 7.

145

Commodities with Market Order Reserves
The applicant/insured must provide information for commodities on the FOR that are sold with market
order reserves. The applicant/insured must provide a detailed listing that shows the separate amounts
of production from commodities expected to be sold:
(1)

to the reserve with the reserve price; and

(2)

on the free market with the expected free market price.

The supplemental information provided must support the total production and expected revenue
reported on the FOR for the commodity.
October 2022
FCIC-18160-1

146

Commodities Sold with Co-op Retainages
A.

Supplemental Information
The applicant/insured must provide information for insured commodities on the FOR that are
sold with co-op retainages. The applicant/insured must provide a detailed listing that shows
the separate amounts of production from such commodities expected to be:
(1)

retained, and the expected value; and

(2)

sold through normal markets.

Special handling is required to determine RTC and calculating indemnities for producers who
market commodities through co-operatives that distribute proceeds from the same commodity
in cash and allocations.
Such co-operatives make cash payments on a crop year basis; however, the payments may be
distributed over several years.
Allocations are considered non-cash distributions by such co-operatives and are made annually
on a crop year basis. Allocations include Allocation Credits and Permanent Equity Capitol
Credits, which comprise the producer’s equity in the co-operative. Such allocations are
classified as cooperative distribution revenue directly related to the sale of the insured
commodity.
B.

Co-Operative Cash Payments
“Cash advance” payments are distributed to the producer in the crop year of harvest following
delivery of the insured commodity. Such “cash advance” payments may be made weekly in the
year harvested. Subsequent cash payments are distributed to the producer in subsequent crop
years according to the co-operative’s payment schedule for the commodity.
Example:

Commodity A production is delivered to the co-operative in the 2018 crop year.
The co-operative makes cash payments to the producer weekly for the
remainder of the 2019 crop year then, following the payment schedule for
commodity A, makes four cash payments in 2020 crop year, four payments in
2021 crop year, and a final cash payment in 2022 crop year.

Allocations
Allocations are distributed annually on the co-operative’s tax-year basis, according to the cooperative’s schedule.
Example:

October 2022

Each year the ABC Co-operative retains 10-30 percent of a producer’s net grape
proceeds. It documents the amount retained by issuing Allocation Credits for 80
percent of the amount retained and issuing Permanent Equity Capitol Credits for
20 percent of the amount retained.

FCIC-18160-1

146

Commodities Sold with Co-op Retainages (Continued)
C.

Allocations (Continued)
Allocation Credits reach full face value at the maturity date specified by the co-operative.
However, the producer may have the option of redeeming a crop year’s Allocation Credits prior
to the maturity date. Producers may sell allocation credits at a reduced value to a broker prior
to reaching full face value. Producers must pay Federal Income Taxes on the full stated value of
qualified written notices of Allocation Credits in the year they are issued.
Permanent Equity Capitol Credits are a source of the co-operative’s working capital. The cooperative’s policy governs repayment, partial repayments, payback options, and whether
excess Permanent Equity Capital Credits will be distributed in the form of Allocation Credits or
refunded as cash. Producers are subject to Federal income tax on the full stated value in the
tax year received. Cash refunds are not generally subject to Federal income tax since they were
taxable to the cooperative member when allocated.
Non-Cash allocations are subject to Federal Income Tax when received; therefore, it is not
necessary to maintain a year-to-year balance for WFRP purposes.

Total Projected Earnings for Calculating Indemnities
Total projected earnings are the sum of:
(1)

“cash advance” payments made in the year of harvest;

(2)

projected cash payments in subsequent years;

(3)

Allocation Credits; and

(4)

Permanent Equity Capital Credits.

Commodities marketed in this manner will be considered to have been sold at a specified price,
and the total projected earnings for such commodities will be used to determine the dollar
amount of accounts receivable when calculating indemnities.
E.

Required Information on Accounts Receivable
The beginning amount of accounts receivable must include the cash payments, both advance
and any subsequent, and any Allocation Credits and Permanent Equity Capital Credits for a
previous policy year that the applicant/insured reported to IRS in the current policy year. The
cash payments amount must be reported on a separate line from the Allocation Credits and
Permanent Equity Capital Credits amount. Enter “(Cash)” immediately after the cash dollar
amount in the “Beginning Amount” column of the accounts receivable worksheet. Enter
“(Allocations)” immediately after the allocations dollar amount in the “Beginning Amount”
column of the accounts receivable worksheet.
The ending amount of accounts receivable must be the amount equal to the total projected
earnings for the policy year minus the cash payments received by the producer and reported to
IRS for the policy year.

October 2022

FCIC-18160-1

146

Commodities Sold with Co-op Retainages (Continued)
E.

Required Information on Accounts Receivable (Continued)
Example:

Insured A has filed a loss claim for the 2023 policy year, and markets grapes
through ABC Co-operative, which distributes proceeds from the grapes in cash
and allocations. In 2023, insured A received $12,115 cash payments and $10,200
in Allocation Credits and Permanent Equity Capital Credits for the 2022 policy
year. Insured A reported the total $22,315 to IRS in 2023.
Insured A’s total projected earnings for grapes were $48,271 in 2022. Insured A
received $21,773 in “cash advance” payments in 202 and reported the $21,773
to IRS in 2022. Insured A will receive the remaining $26,498 ($48,271 – $21,773)
in future cash payments, and future Allocation Credits and Permanent Equity
Capital Credits from ABS Co-operative. The following is how Insured A’s
accounts receivable worksheet would be completed.

147

Vertically Integrated Operations
For Micro Farm, vertically integrated operations as defined in the WFRP policy are not eligible for
coverage.
The integrated relationship between multiple entities can affect the value, cost, and price of
commodities, goods, and services used/determined by an integrated operation.
The expected value that represents the local market value/price, determined according to WFRP policy
expected value guidelines, must be used for purposes of allowable revenue, expected revenue, and
post-production operation costs, regardless of the actual value and price used by a vertically integrated
operation. Refer to the CIH for acceptable record requirements for vertically integrated entities. The
Market Certification is not applicable to WFRP and Micro Farm. ***
Example:

October 2022

Insured A is a vertically integrated operation that controls all stages of production of a
commodity including, but not limited to, purchasing of seed, planting, fertilizing,
harvesting, removal from the field, purchasing packaging materials, washing, grading,
packaging, processing, and selling. Multiple entities handle different stages of the
production of the commodity, but all are part of the same vertically integrated
operation. The local market value/price determined by the expected value guidelines
must be used for determining allowable revenue, expected revenue, and postproduction operation costs for insured A. ***

FCIC-18160-1

148

Commodities Purchased for Resale
(1)

Eligibility requirements at SCD limit expected revenue derived from commodities purchased for
resale to 50 percent of the total expected revenue. However, changes may occur during the
policy year that result in the farm being over the limit when the RFOR is submitted.

(2)

If the expected revenue from commodities purchased for resale reported on the RFOR is
greater than 50 percent of the total expected revenue, the expected revenue for commodities
purchased for resale will be limited to no more than the amount of expected revenue from
commodities the insured will produce on their farm operation (including expected revenue
from commodities lost due to insurable causes). All revenue earned will be considered RTC. To
determine if an insured has more than the allowed amount of revenue from commodities
purchased from resale:
(a)

Total the expected revenue on the RFOR for commodities purchased for resale.

(b)

Total the expected revenue from commodities produced on the farm operation
(including expected revenue from commodities lost due to insured causes of loss).

(c)

If the result of (a) is greater than the result of (b) then:
(i)

subtract the result of (b) from the result of (a);

(ii)

divide the result of (i) by the result of (a), rounded to six decimal places;

(iii)

subtract the result of (ii) from 1.000; and

(iv)

multiply the result of (iii) by the expected revenue of each commodity purchased
for resale shown on the RFOR.

The result will be the capped amount. The total may not necessarily equal the result of
(b) due to rounding.
Example:

Revenue from commodities purchased for resale exceeds amount of
expected revenue from commodities produced on the farm operation:
Expected revenue from commodities purchased for resale is $100,000.
Corn (PFR)

$50,000

Wheat (PFR) $25,000
Hay (PFR)

$25,000

Total

$100,000

Expected revenue from commodities produced on the farm operation is
$85,000.

October 2022

FCIC-18160-1

148

Commodities Purchased for Resale (Continued)
Soybeans

$85,000

$100,000 – $85,000 = $15,000
$15,000 / $100,000 = 0.150000
1.000 – 0.150000 = 0.850000
Corn (PFR)

$50,000 × 0.850000 = $42,500

Wheat (PFR) $25,000 × 0.850000 = $21,250
Hay (PFR)

$25,000 × 0.850000 = $21,250
Total

$85,000

Only the Total Expected Revenue of each commodity on the RFOR will be changed. However,
all allowable revenue produced from the commodities purchased for resale will count as RTC.
149

Industrial Hemp
(1)

Industrial hemp is an insurable commodity under WFRP only when planted, grown, and
harvested in accordance with the regulations governing industrial hemp production on the land
the industrial hemp is produced and in accordance with a valid marketing contract.
(a)

The insured must comply with all applicable Federal regulations and any applicable state
or tribal laws. To produce industrial hemp, the insured must be licensed or authorized
under a State, Tribal, or USDA hemp program. Hemp regulations can be found at
www.ams.usda.gov/rules-regulations/hemp;

Note:

The maximum acceptable hemp THC level will be the lesser of: 1) 0.3 percent,
allowing for the measurement of uncertainty provided by the testing laboratory;
or 2) the acceptable level of the applicable governing authority (State or Tribe) in
which the insured crop is grown, allowing for the measurement of uncertainty
provided by the testing laboratory. If the test results provided by the testing
laboratory do not include a measure of uncertainty, the measurement of
uncertainty will be considered zero percent (0.000 percent). Refer to Paragraph
126.

(b)

If the insured’s farm operation is mostly located in one state but the insured produces
industrial hemp in another state, the insured must comply with the regulations of the
state where the land on which the industrial hemp is located;

(c)

In addition to the requirements in Exhibit 18, the entity issuing the marketing contract
must:
(i)

October 2022

comply with all requirements of the regulatory plan in place in the location the
industrial hemp will be processed; and
FCIC-18160-1

149

Industrial Hemp (Continued)
(ii)
(d)

must possess or have contractual access to facilities with enough equipment and
capacity to process the amount industrial hemp in the marketing contract.

Industrial hemp grown without a valid marketing contract is not insurable, even if the
insured’s farm operation has a marketing contract for a portion of the industrial hemp
planted acreage. Any revenue produced from uninsurable hemp acreage will be
included as RTC.
Example:

(2)

(3)

If the industrial hemp is produced in a state or tribal territory that has assumed regulatory
responsibility for industrial hemp production, the insured must:
(a)

comply with all requirements and provisions of the regulatory plan of that state or tribe;
and

(b)

possess any license required by that plan.

Industrial hemp must be produced using seed or plant cuttings adapted to the intended use
and planting patterns appropriate to the intended use.
Example:

(4)

Industrial hemp harvested primarily for fiber must be produced using a seed or
plant cutting adapted for fiber production and the planting pattern used must be
intended to maximize fiber production.

Industrial hemp that is unsalable or destroyed due to a THC level exceeding the maximum
acceptable limit as stated in Subparagraph 149(a) will be considered damaged due to an
uninsured COL, regardless of the determination of what may have caused the increased THC
level. The insured must notify the AIP prior to destroying the industrial hemp. Refer to
Paragraph 94.
Note:

150

The insured has a marketing contract for 50 acres of industrial hemp
valued at $50,000. However, the producer produces 100 acres of
industrial hemp and sells all 100 acres for $100,000. At claim time,
$100,000 will be included as RTC.

At claim time, the RTC for such acreage will be not less than the expected
revenue reported on the RFOR. Refer to Paragraph 106.

Combined Direct Marketing Commodities
The combined direct marketing commodity procedures are not applicable to Micro Farm.
The combined direct marketing commodity code, found in the AD, is used for farm operations that
include revenue from commodities sold through direct marketing and submit direct marketing sales
records to the AIP as required in Paragraph 51.
(1)

October 2022

For any commodity sold through direct marketing and another marketing channel to qualify as
a direct marketing commodity, it must be listed on separate lines of the FOR.
FCIC-18160-1

150

Combined Direct Marketing Commodities (Continued)
(2)

The insured must report at least two commodities sold through direct marketing under the
combined direct marketing commodity.

(3)

Commodities reported as combined direct marketing are not required to have separate
expected values and yields.

(4)

Determining the expected value:
(a)

The insured must provide direct marketing sales records for the last three years
preceding the policy year, including the lag year, if requested by the AIP, that represents
a complete marketing record of all commodities on the farm operation sold through
direct marketing and reported as combined direct marketing.
Revenue from sources other than insurable commodities (e.g., bottled water, souvenir
sales, jams, etc., sold through a farm stand) and post-production expenses must be
removed when determining expected revenue for combined direct marketing.

(b)

The insured must certify their total number of planted acres for the last three years
preceding the policy year, including the lag year, of all commodities sold through direct
marketing and reported as combined direct marketing. The insured must submit
verifiable records, if requested by the AIP, to support the certified acres.

(c)

To calculate the expected value per acre:

(d)

(5)

(i)

determine the three-year average allowable revenue using the records from (a);

(ii)

determine the three-year average number of acres using the records from (b);
and

(iii)

divide the result of (i) by the result of (ii).

The AIP may adjust the expected value per acre if market conditions, commodity
mixtures, or structures used to produce commodities on the insured’s farm operation
have changed that could result in a lower expected revenue than the three-year
average.

For the purposes of commodity counts in Paragraph 41, the combined direct marketing
commodity code will equal two commodities regardless of the number of commodities
reported as combined direct marketing.

151-160 (Reserved)

October 2022

FCIC-18160-1

PART 7: MICRO FARM
161

Micro Farm
The micro farm commodity code, found in the AD, is used for farm operations that are eligible and
have elected coverage under the Micro Farm Pilot Provisions. All agriculture commodities on the
insured’s farm operation are listed under the micro farm commodity code.
(1)

All commodities produced on the farm operation must be listed on the FOR using the micro
farm commodity code.

(2)

A commodity count is not calculated and:
(a)

the commodity count will equal three;

(b)

the insured will qualify for all coverage levels; and

(c)

the diversification discount is 0.523 for the purpose of the premium calculation.

(3)

Commodities reported on the FOR under the micro farm commodity code are not required to
have separate expected values and yields.

(4)

Determining the expected value:
(a)

The insured must provide consolidated sales records for the last three years preceding
the policy year, when requested by the AIP, that represents a complete marketing
record of all commodities on the farm operation reported as micro farm commodities.
Revenue generated from post-production operations and value added to commodities
may be included in allowable revenue. If this revenue is used when determining the
allowable revenue for the whole-farm historical average revenue or expected revenue,
it must be included in RTC.
Revenue from sources other than insurable commodities (e.g., bottled water, souvenir
sales, etc., sold through a farm stand) and the cost of commodities purchased for resale
must be removed when determining expected revenue for micro farm commodities.

October 2022

(b)

The insured must certify their total number of planted acres for the last three years
preceding the policy year, of all commodities reported as micro farm commodities. The
insured must submit verifiable records, if requested by the AIP, to support the certified
acres.

(c)

To calculate the expected value per acre:
(i)

determine the three-year average allowable revenue using the records from (a);

(ii)

determine the three-year average number of acres using the records from (b);
and

(iii)

divide the result of (i) by the result of (ii).
FCIC-18160-1

100

161

Micro Farm (Continued)
(d)

October 2022

FCIC-18160-1

101

EXHIBITS
Exhibit 1

Acronyms and Abbreviations

Approved Acronym/Abbreviation
Act
AD
AIP
AMS
ARC
ARH
BFR
CAT
CCD
CFR
CIH
ERS
FCIC
FOR
FFOR
FSA
GFP
GSH
IFOR
IRS
NAP
NASS
OPI
PAIR
PASD
PAW
PFR
PHTS
PLC
RFOR
RMA
RRD
RTC
SBI
SCD
SP
SSN
THC
U.S.C.
USDA
VFR
WFHR
WFRP

October 2022

Term
Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et. seq.)
Actuarial Documents
Approved Insurance Provider
Agricultural Marketing Service
Agricultural Risk Coverage
Actual Revenue History
Beginning Farmer or Rancher
Catastrophic Risk Protection
Contract Change Date
Code of Federal Regulations
Crop Insurance Handbook
Economic Research Service
Federal Crop Insurance Corporation
Farm Operation Report
Final Farm Operation Report
Farm Service Agency
Good Farming Practice
General Standards Handbook
Intended Farm Operation Report
Internal Revenue Service
Noninsured Disaster Assistance Program
National Agricultural Statistics Service
Office of Primary Interest
Pre-Acceptance Inspection Report
Product Administration and Standards Division
Pre-Acceptance Worksheet
Purchase for Resale
Policy Holder Tracking System
Price Loss Coverage
Revised Farm Operation Report
Risk Management Agency
Revised Reporting Date
Revenue-to-Count
Substantial Beneficial Interest
Sales Closing Date
Special Provisions of Insurance
Social Security Number
Tetrahydrocannabinol
United States Code
United States Department of Agriculture
Veteran Farmer or Rancher
Whole-Farm History Report
Whole-Farm Revenue Protection

FCIC-18160-1

102

Exhibit 2

Definitions

Abandon: The failure to continue activities necessary to produce an amount of allowable revenue equal to or
greater than the expected revenue of a commodity, performing activities so insignificant as to provide no
benefit to a commodity, or failure to harvest or market a commodity in a timely manner.
Accrual accounting method: A system of record keeping in which revenue earned and expenses incurred for a
specified time period are recorded regardless of whether or not the revenue was received, or the expenses
were paid during the specified time period.
Actuarial Documents: The information for the policy year that is available for public inspection in the
insured’s agent’s office and published on RMA’s web site that includes available crop insurance policies,
coverage levels, information needed to determine amounts of insurance, premium rates, premium adjustment
percentages, program dates, and other related information regarding the insurance coverage.
Agricultural experts: Persons who are employed by the Cooperative Extension System or the agricultural
departments of universities, or other persons approved by FCIC, whose research or occupation is related to
the specific commodity for which such expertise is sought.
***
Allowable revenue: Farm revenue, specified by the WFRP policy and including applicable adjustments, from
the production of commodities produced by the applicant’s/insured’s farm operation, purchased for resale, or
purchased for further growth and development by the applicant’s/insured’s farm operation, that the IRS
requires the applicant/insured to report on farm tax records.
Animals: Living organisms other than plants or fungi that are produced or raised in farm operations, including,
but not limited to, cattle, horses, swine, sheep, goats, poultry, fish, bees, and fur bearing animals. For the
purposes of WFRP, animals must be propagated or reared in a controlled environment.
Animal products: Any commodity derived from a live animal, excluding commodities that are also animals or
parts of animals. Examples include milk, eggs, honey, and wool but not live calves, processed broilers, package
bees, or mutton.
Application: The form required to be completed by the applicant/insured and accepted by the AIP before
insurance coverage will begin.
***
Approved revenue: The amount of allowable revenue that the applicant’s/insured’s farm operation is
expected to earn or will obtain from the sale of commodities the applicant/insured produces, or purchases for
resale, in the insurance period, as approved by the AIP.

October 2022

FCIC-18160-1

103

Exhibit 2

Definitions (Continued)

Aquaculture commodity: Aquatic animals or plants grown in a controlled aquatic environment; including, but
not limited to fish, shellfish, and seaweeds.
Assignment of indemnity: A transfer of policy rights, whereby the applicant/insured assigns their right to an
indemnity payment, for the policy year only, to creditors or other persons to whom they have a financial debt
or other monetary obligation.
***
Average allowable revenue: The average of the allowable revenue for the applicant’s/insured’s whole-farm
history period after any applicable adjustments.
***
Beginning accounts receivable: Allowable revenue earned prior to the insurance period, but that has not
been received at the beginning of the insurance period and supported by verifiable records. This amount
includes the value of beginning inventory that is under a marketing contract with a buyer to be purchased at a
specified price.
Beginning farmer or rancher: An individual who has not actively operated and managed a farm or ranch in
any state, with an insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or
sharecropper for more than ten policy years, as determined in accordance with FCIC procedures. Any policy
year’s insurable interest may, at the insured’s election, be excluded if earned while under the age of 18, while
in full-time military service of the United States, or while in post-secondary education, in accordance with FCIC
procedures. A person other than an individual may be eligible for beginning farmer or rancher benefits if all of
the substantial beneficial interest holders qualify as a beginning farmer or rancher.
Beginning inventory: The commodities the applicant/insured produced or owned prior to the insurance
period, but that have not been sold or otherwise disposed of at the beginning of the insurance period and
supported by verifiable records. Any commodity that is under a marketing contract with a buyer to be
purchased during the previous insurance period at a price that will not be determined until the current
insurance period or subsequent years will be considered as beginning inventory.
Bypassed acreage: Land on which a commodity, grown under a processor contract, is ready for harvest but
the buyer elects not to accept the commodity and it is not harvested.
Calendar year filer: An insured that files taxes based on the 12 consecutive months corresponding to January
1 through December 31.
Cancellation date: The date specified in the AD for the tax filer type on which coverage will automatically
renew unless canceled in writing by either the insured or the AIP or terminated in accordance with WFRP
policy.

October 2022

FCIC-18160-1

104

Exhibit 2

Definitions (Continued)

Carryover insured: An insured that was covered under WFRP in the policy year immediately prior to the
current policy year without respect to insurance provider. For the purposes of Micro Farm, coverage for the
previous policy year must have included Micro Farm coverage to qualify as a carryover insured for the
purposes of determining the insured’s approved revenue.
Cash accounting method: A system of record keeping where farm business revenue and expenses are
recorded during the time period they are actually received or paid.
Catastrophic Risk Protection: The minimum level of coverage offered by FCIC.
Certificate: With respect to organic crops, a written document that identifies the name of the person
certified, effective date of certification, certificate number, types of products certified, and name and address
of the certifying agency.
Certification: With respect to organic crops, a determination made by the certifying agency that the
production or handling operation is in compliance with the certifying agency’s certification standards.
Certified organic acreage: Acreage in the certified organic farming operation that has been certified by a
certifying agent as conforming to organic standards in accordance with 7 CFR part 205.
Certifying agent: A private or governmental entity accredited by the USDA Secretary of Agriculture for the
purpose of certifying a production, processing or handling operation as organic.
Claim for indemnity: A claim for a loss made on the AIP’s form that contains the information necessary to pay
the indemnity, as specified in the WFRP policy.
Combined direct marketing: Two or more commodities sold through direct marketing and reported as a
single commodity code on the insured’s FOR.
Commodities purchased for resale: Commodities not produced by the farm operation, but which are
purchased to be added by the farm operation. This does not include commodities purchased for further
growth, development or maturity for later sale, or commodities purchased to replace production of the farm
operation lost due to insurable causes.
Commodity: Any agricultural product established or produced by the farm operation, except timber, forest,
and forest products, animals for sport, show, or pets.
Commodity code: A code designating an agricultural product that qualifies as a commodity for the commodity
count calculations. A commodity code may have more than one associated rate code. For the purposes of
Micro Farm, all agriculture commodities on the insured’s farm operation are designated under a single code.
Commodity count: The number of commodities on the farm operation as determined in section 19I of WFRP
policy.
Consent: Approval in writing by the AIP allowing the insured to take a specific action.

October 2022

FCIC-18160-1

105

Exhibit 2

Definitions (Continued)

Consolidated sales records: Contemporaneous records that document the sale of commodities by the
insured’s farm operation. The insured must provide the contemporaneous records, when requested by the
AIP, used to determine the allowable revenue on their Schedule F tax forms.
Contemporaneous records: Written records developed at the time the event occurred, recording information
such as planting of a commodity, harvested production, sale of a commodity, daily receipts, etc.
Contract change date: The date by which changes to the policy, if any, will be made available.
Contract grower: A person retained under contract to manage the growth of a commodity owned by another
person.
Controlled Substance: Any substance whose manufacture, distribution, or use is federally regulated under the
Controlled Substance Act.
Cooperative Extension System: A nationwide network consisting of a state office located at each state’s landgrant university, and local or regional offices. These offices are staffed by one or more agricultural experts,
who work in cooperation with the National institute of Food and Agriculture, and who provide information to
agricultural producers and others.
County: Any county, parish, political subdivision of a state, or other area specified in the AD.
Damage: Injury, deterioration, or loss of production of an insured commodity due to insured or uninsured
causes.
Days: Calendar days, unless otherwise specified.
Deductible: The result of the producer’s approved revenue minus the producer’s insured revenue. The
deductible represents the amount of the producer’s approved revenue that is not insured by the WFRP policy.
Delinquent debt: The same meaning as the term defined in 7 CFR part 400, subpart U.
Direct marketing: Marketing commodities directly to consumers without the involvement of a third party
(e.g., farmer’s markets, u-pick, roadside stands, internet sales, etc.).
Direct marketing sales records: Contemporaneous records that document the sale of commodities through
direct marketing. If the insured sells a commodity through direct marketing, they must provide the
contemporaneous records used to determine allowable revenue on the Schedule F farm tax form.
Disinterested third-party: A person that does not have any familial relationship (parents, brothers, sisters,
children, spouse, grandchildren, aunts, uncles, nieces, nephews, first cousins, or grandparents, related by
blood, adoption or marriage, are considered to have a familial relationship) with the insured and who will not
benefit financially from the sale of the insured commodity.
Disregarded entity: A single-member tax entity that does not elect to be treated as a corporation for income
tax purposes and files taxes under another entity name.
October 2022

FCIC-18160-1

106

Exhibit 2

Definitions (Continued)

Diversification discount: The discount to the applicant’s/insured’s farm premium rate their farm qualifies for
based on their commodity count, as determined in accordance with section 19I of the WFRP Policy.
Early fiscal year filer: An insured, other than a calendar year filer, that files taxes with a fiscal year that begins
prior to September 1.
End of insurance period, date of: The date upon which insurance coverage ceases for the policy year.
***
Ending accounts receivable: Allowable revenue earned during the insurance period, but that has not been
received at the end of the insurance period and supported by verifiable records. This amount includes the
value of ending inventory that is under a marketing contract with a buyer to be purchased at a specified price.
Ending inventory: The commodities the insured produced during the insurance period, but that have not
been sold or otherwise disposed of at the end of the insurance period and supported by verifiable records and
reported on the Inventory Report as ending inventory. Any commodity that is under a marketing contract
with a buyer to be purchased during the insurance period at a price that will not be determined until the
subsequent policy years will be considered as ending inventory.
Expanded operation: Adjusted revenue is the average allowable revenue adjusted to reflect physical
expansion of the farm operation.
Expanding operation factor: A factor that is used to calculate the expanded operation adjusted revenue for
farm operations that are physically expanding.
Expected revenue: The amount of revenue the applicant/insured expects to receive from a commodity as
stated on the FOR.
Expected value: The price the insured can reasonably expect to receive for a commodity in accordance with
the expected value guidelines in the WFRP policy, less the cost of all post-production expenses.
Expected Yield: The yield the insured reasonably expects their insured commodity to produce under normal
growing conditions in the insurance period, in accordance with the expected yield guidelines.
***
Farm operation: All farming activities for which revenue and expenses are reported to the IRS under a single
taxpayer identification number will be considered a single a farm operation for WFRP purposes.
Farm Operation Report: The form on which the applicant/insured provides all required information regarding
the commodities they expect to earn revenue from during the insurance period. The FOR consists of three
parts; the IFOR, RFOR, and FOR, with each part due at the time specified in the WFRP Policy.
Farm premium rate: The premium rate for coverage under this policy calculated based on the commodities
on the insured’s farm operation.
Farm tax forms: IRS income tax forms (such as Form 1040, Form 1120, Form 1041, Form 1065, Form 1102S,
and Form 4835) used to report farm revenue and expenses for a signed and filed Federal tax return,
specifically including Schedule F (from 1040) but also other forms used to report farm revenue and used under
this policy to develop a Substitute Schedule F, if needed.
October 2022
FCIC-18160-1
107

Exhibit 2

Definitions (Continued)

Fiscal year: A period of 12 consecutive months used for accounting and tax purposes and ending on the last
day of the twelfth month provided the twelfth month is not December (a twelve-month period ending the last
day of December is a calendar year).
Generally recognized: When agricultural experts or organic agricultural experts, as applicable, are aware of
the production method or practice and there is no genuine dispute regarding whether the production method
or practice allows the commodity to make normal progress toward maturity.
Good farming practices: The production methods utilized to produce the insured commodities and allow
them to make normal progress toward maturity resulting in at least the approved revenue, which are: (1) For
conventional or sustainable farming practices, those generally recognized by agricultural experts for the area;
or (2) for organic farming practices, those generally recognized by organic agricultural experts for the area or
contained in the organic plan. The AIP or the insured may request the AIP to contact FCIC to determine
whether or not production methods will be considered “good farming practices.”
Household: A domestic establishment including individuals with a familial relationship and others who live on
the same property.
Indexed Revenue: The allowable revenue of a tax year adjusted to reflect growth during the whole-farm
history period.
Indexed average revenue: The average for all years in the insured’s whole-farm history period after any
adjustment to reflect revenue growth during the whole-farm history period.
Industrial Hemp: The plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all
derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a
delta-THC concentration of not more than 0.3 percent on a dry weight basis.
Insurable interest: The percentage of the commodity that is at financial risk of loss.
Insurance period: The 12-month period corresponding to the producer’s tax year beginning in the calendar
year in which the SCD occurs.
Insured: The named person as shown on the accepted application. This term does not extend to any other
person having a share or interest in the crop, such as a partnership, landlord, or any other person, unless
specifically indicated on the accepted application.
Insured commodity: A commodity the insured will produce or purchase for resale during the insurance
period.
Insured revenue: The total amount of insurance provided to the insured.
Intended commodity: A commodity the insured reported on their IFOR.
Lag year: The tax year immediately preceding the insurance period.
Late fiscal year filer: An insured with a fiscal year that begins September 1 or later.
October 2022
FCIC-18160-1

108

Exhibit 2

Definitions (Continued)

Local market price: The average price offered by buyers of the commodity in the area where the
applicant/insured normally sells that commodity.
Market readiness operations: The on-farm activities that are the minimum required to remove the
commodity from the field and make the commodity market ready, such as washing, packing, etc. Market
readiness activities are not considered to be post-production operations and do not have to be excluded from
allowable revenue in accordance with section 45. Since it is the minimum required to remove the commodity
from the field, the activity must occur on or in close proximity to the field where the commodity is produced.
Market readiness operations do not include any activities that occur off-farm or on-farm in in-field that
increases the value of the crop, such as canning, freezing, and processing activities that alter the physical
nature of insurable commodities including, but not limited to, slicing apples, putting commodities into gift
baskets, jams, jellies, wine, or cider, etc.
Marketing contract: A written agreement between the applicant/insured and a buyer for the purchase of a
commodity the applicant/insured will produce on their farm operation at a specified price.
Native sod: Acreage that has no record of being tilled (determined in accordance with information collected
and maintained by an agency of the USDA or other verifiable records that applicant/insured provides and are
acceptable to the AIP) for the production of an annual crop on or before February 7, 2014, and on which the
plant cover is composed principally of native grasses, grass-like plants, forbs, or shrubs suitable for grazing and
browsing.
Negligence: The failure to use such care as a reasonably prudent and careful person experienced in the
production of commodities would use under similar circumstances.
Net value: The value of a commodity at the beginning of the insurance period minus the cost of the
commodity.
Noninsured Crop Disaster Assistance Program: A program administered by FSA which provides coverage to
producers of crops that do not have a permanent crop insurance program available or, if such coverage is
available, it is only available under a policy that provides coverage for specific intervals based on weather
indexes or WFRP.
Notice of loss: A written notice the insured is required to file in the agent’s office whenever they initially
discover that any commodity insured under WFRP has been damaged by a cause of loss that could result in a
loss of production or reduction in value or that allowable revenue for the policy year may be less than insured
revenue.
Nursery and greenhouse commodities: Plants which are propagated or grown to be sold as plants, not
including commodities produced by plants (e.g., tomato plants, but not tomatoes). For the purposes of this
policy, plants for nursery and greenhouse commodities must be propagated or grown in a controlled
environment.
Offset: The act of deducting one amount from another amount.

October 2022

FCIC-18160-1

109

Exhibit 2

Definitions (Continued)

Organic agricultural experts: Persons who are employed by the following organizations: Appropriate
Technology Transfer for Rural Areas, Sustainable Agriculture Research and Education or the Cooperative
Extension System, the agricultural departments of universities, or other persons approved by FCIC, whose
research or occupation is related to the specific organic crop or practice for which such expertise is sought.
Organic farming practice: A system of plant or animal production practices used to produce the commodity
that is approved by a certifying agent in accordance with 7 CFR part 205.
Organic system plan: A written plan, in accordance with the National Organic Program published in 7 CFR part
205 that describes the organic farming practices to be carried out on the farm operation.
Organic standards: Standards in accordance with the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et
seq.) and 7 CFR part 205.
Originating entity: An entity that actually physically produces the commodity.
Pass-through entity: An entity that reports to the IRS but does not pay taxes on portions of the revenue,
instead passing it to each individual owner who then pays income tax on their portion of the revenue from the
business.
Perennial commodity: A commodity produced on a plant, bush, tree, or vine that has a lifespan of more than
one year, as identified in the AD.
Person: An individual, partnership, association, corporation, estate, trust, or other legal entity, and wherever
applicable, a State or a political subdivision or agency of a State. “Person” does not include the United States
Government or any agency thereof.
Policy year: The calendar year that begins after the CCD (for late fiscal year filers the policy year will differ
from the tax year insured under the WFRP policy).
Post-production operations: Any operations not included in the definition of market readiness operations,
performed after producing and harvesting an insured commodity to prepare it for sale. These include, but are
not limited to, any activity occurring on-farm or off-farm to prepare the commodity for sale or any activity that
increases the value of the crop, such as canning, freezing, and processing activities that alter the physical
nature of insurable commodities such as slicing apples, putting commodities into gift baskets, making jams,
jellies, wine, or cider, or costs for cold and controlled atmosphere storage.
***
Produced: An insured commodity will be considered produced when it has matured to the extent that it is
generally saleable at established markets, regardless of whether or not it is actually harvested by the end of
the insurance period.
Production capacity: Physical land or structures used for the production of commodities on the insured’s
farm operation.

October 2022

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110

Exhibit 2

Definitions (Continued)

Prohibited substance: Any biological, chemical, or other agent that is prohibited by Federal statute from use
or is not included in the organic standards for use on any certified organic, transitional or buffer zone acreage.
Lists of such substances are contained at 7 CFR part 205.
Qualifying revenue threshold: The minimum amount of revenue a commodity must be expected to generate
to qualify as a commodity for the purpose of the insured’s commodity count.
Rate code: A code designating a specific commodity, type, and practice for premium rate calculations. Each
rate code has an associated premium rate specified in the actuarial documents.
Replanted commodity: The same annual commodity replanted on the same acreage as the first insured
commodity for harvest in the same insurance period.
Replanting: Performing the cultural practices necessary to prepare the land and then replacing the seed or
plants of the damaged or destroyed commodity on the same acreage.
Revenue trend factor: A factor that is used to measure the year-to-year growth in revenue of the insured’s
farm operation.
Sales closing date: The date contained in the AD for the tax filer type by which an application must be filed
and the last date by which the insured may change coverage for a policy year.
Schedule F: A tax form commonly used to file Federal taxes for a farm.
Short tax year: A period of less than twelve consecutive months for which a tax entity may be required to file
a tax return due to changing from a calendar year to fiscal year or vice versa or from changing the dates of a
fiscal year.
Simple average allowable revenue: The simple average of the allowable revenue for all years in the
applicant/insured’s whole-farm history period.
Simple average indexed revenue: The simple average of the indexed revenue for all years in the whole-farm
history period.
Special Provisions: The part of the policy that contains specific provisions of insurance that may vary by
geographic area.

October 2022

FCIC-18160-1

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Exhibit 2

Definitions (Continued)

Substantial beneficial interest: An interest held by any person of at least 10 percent in you (e.g., there are
two partnerships that each have a 50 percent interest in you and each partnership is made up of two
individuals, each with a 50 percent share in the partnership. In this case, each individual would be considered
to have a 25 percent interest in you, and both the partnerships and the individuals would have a substantial
beneficial interest in you. The spouses of the individuals would not be considered to have a substantial
beneficial interest unless the spouse was one of the individuals that made up the partnership. However, if
each partnership is made up of six individuals with equal interests, then each would only have an 8.33 percent
interest in you and although the partnership would still have a substantial beneficial interest in you, the
individuals would not). The spouse of any individual applicant or individual insured will be presumed to have a
substantial beneficial interest in the applicant or insured unless the spouses can prove they are legally
separated or otherwise legally separate under the applicable state dissolution of marriage laws. Any child of
an individual applicant or individual insured will not be considered to have a substantial beneficial interest in
the applicant or insured unless the child has a separate legal interest in such person.
Substitute Schedule F: A form used in place of a Schedule F form if the applicant/insured files farm tax forms
for their farm operation that do not include a Federal Schedule F tax form.
Summary of coverage: The AIP’s statement to the insured, based upon the FOR that provides specific
information about the insured’s policy including the amount of insurance coverage.
Tax entity: Any person that has a tax reporting requirement.
Tax filer type: The type of tax filer for purposes of the WFRP policy, determined according to the producer’s
tax year. The tax filer types are calendar year filer, early fiscal year filer, and late fiscal year filer.
Tax year: The annual accounting period for the farm operation defined by the 12-month period used for tax
purposes. The tax years are (1) a calendar year or (2) a fiscal year. For the purposes of the WFRP policy, tax
years are designated by the calendar year in which the 12-month period begins.
Total expected revenue: The total amount of expected revenue the applicant/insured expects to receive from
all commodities on their farm operation in the insurance period, as stated on the FOR, including expected
revenue from commodities lost to a covered cause of loss.
Transitional acreage: Acreage on which organic farming practices are being followed but the acreage does
not yet qualify to be designated as organic acreage.
Verifiable records: Contemporaneous records provided from a disinterested third party (such as records from
a warehouse, elevator, processor, packer, broker, input vendor, etc.), or by measurement of farm stored
commodities. Except for those commodities sold through direct marketing, if the insured processes or packs
their insured commodities, they must provide final settlement sheets showing disposition of the insured
commodities and marketing records reconcilable with revenue reported for tax purposes for their farm
operation.
Vertically integrated operation: A person that has a substantial beneficial interest in multiple entities that
may buy and sell commodities from each other or move commodities from one entity to the other to conduct
post-production operations on the commodities.
October 2022

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Exhibit 2

Definitions (Continued)

Veteran farmer or rancher: An individual who has served active duty in the United States Army, Navy, Marine
Corps, Air Force, Space Force, and Coast Guard, including the reserve components, was discharged, or
released under conditions other than dishonorable, and:
(1)

has not operated a farm or ranch;

(2)

has operated a farm or ranch for not more than 5 years; or

(3)

first obtained status as a veteran during the most recent 5-year period.

(4)

a person, other than an individual, may be eligible for veteran farmer or rancher benefits if all
substantial beneficial interest holders qualify as a veteran farmer or rancher, except when there
is only a married couple. Then a veteran and non-veteran spouse are considered a veteran
farmer or rancher.

Void: The policy is considered not to have existed for a policy year.
Whole-farm historic average revenue: The historic, average allowable revenue generated from the farm
operation, adjusted according to the policy, and stated on the WFHR.
Whole-farm history period: The five consecutive tax years prior to the lag year. For the purpose of Micro
Farm, the whole-farm history period means the series of consecutive tax years preceding the policy year, with
a minimum of three years and a maximum of five years (including the lag year).
Whole-Farm History Report: The report that documents the applicant’s/insured’s farm operation’s allowable
revenue for each tax year used to determine their whole-farm historic average revenue, and other
information necessary to determine the farm operation’s whole-farm historic average revenues. ***

October 2022

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113

Exhibit 3

Form Standards

This exhibit provides form standards that are in addition to or in lieu of the standards and elements provided
in the DSSH and for forms that are unique to WFRP, including completion procedures.
Subparagraphs A through F refer to forms provided in DSSH. All other subparagraphs refer to forms unique to
WFRP.
A.

Conditions of Acceptance Statement
(1)

The following sentences in the Conditions of Acceptance Statement must be removed.
“Unless rejected or the SCD has passed at the time you signed this application, insurance will be
in effect for the crop(s) and policy years specified and will continue for each succeeding policy
year, unless otherwise specified in the policy, until canceled, terminated or voided. The
insurance contract, which includes the accepted application, is defined in the regulation
published at 7 CFR chapter IV.”

(2)

The following sentence must be added to the Conditions of Acceptance Statement.
“Unless rejected or the SCD has passed at the time you signed this application, insurance will be
in effect for the policy year specified and will continue for each succeeding policy year, unless
otherwise specified in the policy, until canceled, terminated or voided.”

Anti-Rebating Certification
(1)

Substitute “Policy Year” as a substantive element in place of “Crop Year.”

(2)

Substitute “I certify, for the policy year indicated,” in place of “I certify, for the crop year
indicated,” at the beginning of the applicant/insured and agent substantive anti-rebating
statements.

Application, Policy Transfer/Application, and Policy Change
(1)

Substitute “Effective Policy Year” as a substantive element in place of “Effective Crop Year.”

(2)

The following substantive elements, as provided by DSSH, are not required. If they are
included, complete each by entering “N/A.”
(a)

“Name of Crop”
Exception:

October 2022

For the Micro Farm Provisions, include and enter “Micro Farm.”

(b)

“Options, Elections, or Endorsements”

(c)

“Percentage of Price Election, Projected Price or Amount of Insurance”

(d)

“Added County Election”

(e)

“Designated County”

(f)

“Landlord/Tenant insuring other’s share”
FCIC-18160-1

114

Exhibit 3
C.

Form Standards (Continued)

Application, Policy Transfer/Application, and Policy Change (Continued)
(3)

The following statement must be within a box above the insured’s signature line and date.
“I understand that:
(a)

my approved revenue for the five years in the whole-farm history period and my
expected revenue for the current year may be adjusted as required under the terms of
the WFRP policy, and that such adjustments may affect the amount of insured revenue
and any indemnity; ***

(b)

no insurance will be provided unless this application and all required forms are
completed and filed on or before the SCD for the policy year in which I am requesting
WFRP coverage; and

(c)

although insurance under this application is continuous from year to year, policy terms,
premium rates, and the amount of revenue insured may change from year to year.”

The following table provides the information to enter for substantive elements that are not selfexplanatory. The information to enter for substantive elements not provided in the following table are
self-explanatory or provided in this handbook or the DSSH.
Element
Applicant’s/Insured’s
Name
Policy Year
State/Code and
County/Code

(4)

Information to be Entered
Enter the name of the applicant/insured. The applicant/insured must be
the same person and person type as the person designated on the United
States Income Tax form(s).
Enter the policy year for which WFRP insurance will be in effect if the
application is approved. Enter the month and year the insurance period
begins and ends if the applicant files Federal taxes on a fiscal year basis.
Enter the state/code and county/code where the majority of the total
expected revenue for the policy year will be derived. It can be any county
in which the insured has established or intends to establish any
commodity. However, the same state and county must appear on all the
applicant’s/insured’s WFRP reports that require a state/county.

Substitute the required language for request of policy transfer with the following.
“Part I
I hereby request cancellation of my WFRP insurance policy with (Ceding Approved Insurance
Provider Name) for the (Policy year of policy cancelled and transferred) because I have applied
for insurance with another Approved Insurance Provider. I understand that if this form is not
executed on or before the established cancellation date, the cancellation of my WFRP insurance
will not become effective until the following policy year.”

October 2022

FCIC-18160-1

115

Exhibit 3
C.

Form Standards (Continued)

Application, Policy Transfer/Application, and Policy Change (Continued)
(5)

Substitute the required language to provide insurance for policy transfer with the following.
“Part II
By submission of this form, we agree to provide WFRP insurance to this applicant for the policy
year specified above unless this form is not executed on or before the established cancellation
date, in which case WFRP insurance will be provided for the following policy year.”

Policy Cancellation
(1)

Substitute “Effective Policy Year” as a substantive element in place of “Effective Crop Year.”

(2)

Substitute the cancellation request statement in DSSH with the following statement.
“I hereby request cancellation of my WFRP insurance policy shown on this cancellation. I
understand that if this form is not executed on or before the cancellation date listed, the
cancellation of my WFRP insurance will not become effective until the following policy year.”

(3)

The following substantive elements, as provided by DSSH, are not required on a policy
cancellation for WFRP policies. If they are included, complete each by entering “N/A.”
(a)

“Name of Crop”

(b)

“Options, Elections, or Endorsements”

The information to enter in all substantive elements are self-explanatory, provided in this handbook or
the DSSH, or taken from the insured’s application.
E.

Summary of Coverage and Policy Confirmation
(1)

Substitute “Effective Policy Year” as a substantive element in lieu of “Effective Crop Year.”

(2)

The following substantive elements, as provided by DSSH, are not required. If they are
included, complete each by entering “N/A.”
(a)

“Options, Elections, or Endorsements”

(b)

“Percentage of Price Election, Projected Price or Amount of Insurance”

(c)

“Crop(s) Insured”

(d)

“Crop/Practice/Type”

The information to enter in all substantive elements are self-explanatory, provided in this handbook or
the DSSH, or taken from the insured’s application.

October 2022

FCIC-18160-1

116

Exhibit 3
F.

Form Standards (Continued)

Withdrawal of Claim for Indemnity
(1)

(2)

The following substantive elements, as provided by DSSH, are not required. If they are
included, complete each by entering “N/A.”
(a)

“Name of Crop(s)”

(b)

“Unit Number(s)”

Substitute the following sentence in lieu of the first sentence in the “Withdrawal Statement.”
“As of this date, I withdraw this claim for indemnity against the Approved Insurance Provider
for the policy listed above.”

Whole-Farm History Report
(1)

The AIPs are responsible for developing the WFHR form. The WFHR must be titled “WHOLEFARM HISTORY REPORT.” The AIPs are NOT authorized to modify or delete any of the required
elements. Refer to Exhibit 4 for the WFHR required elements and example.

(2)

In place of the certification statement in the DSSH, the WFHR must include the following
certification statement immediately above the applicant/insured signature.
“I certify that to the best of my knowledge and belief all of the information on this form is
correct. I understand the information on this form may be reviewed and audited. I understand
that inaccurate information or my failure to retain or provide, upon request, records supporting
the information on this form may result in denial of coverage, cancellation of my policy,
ineligibility for indemnity, or recalculation of the insured revenue. I also understand that failure
to report completely and accurately may result in sanctions under my policy, including but not
limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7
U.S.C. §1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

(3)

The WFHR must include:
(a)

Collection of Information and Data (Privacy Act) Statement;

(b)

Nondiscrimination Statement; and

(c)

AIP Name and Address.

Inventory Report
(1)

The AIPs are responsible for developing the Inventory Report form. The Inventory Report must
be titled “INVENTORY REPORT.” The AIPs are not authorized to modify or delete any of the
required elements. See Exhibit 5 for the Inventory Report required elements and example.

(2)

In place of the certification statement in DSSH, the Inventory Report must include the following
certification statement immediately above the applicant/insured signature.

October 2022

FCIC-18160-1

117

Exhibit 3
H.

Form Standards (Continued)

Inventory Report (Continued)
“I certify that to the best of my knowledge and belief all of the information on this form is
correct. I understand the information on this form may be reviewed and audited. I understand
that inaccurate information or my failure to retain or provide, upon request, records supporting
the information on this form may result in denial of coverage, cancellation of my policy,
ineligibility for indemnity, or recalculation of insured revenue. I also understand that failure to
report completely and accurately may result in sanctions under my policy, including but not
limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7
U.S.C. §1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”
(3)

The Inventory Report form must include:
(a)

Collection of Information and Data (Privacy Act) Statement;

(b)

Nondiscrimination Statement; and

(c)

AIP Name and Address.

Accounts Receivable
(1)

The AIPs are responsible for developing the Accounts Receivable Report form. The Accounts
Receivable Report must be titled “ACCOUNTS RECEIVABLE REPORT.” ***

(2)

The AIPs are not authorized to modify or delete any of the required elements. Refer to Exhibit
8 for the Accounts Receivable Report required elements and example. ***

(3)

In place of the certification statement in DSSH, the Accounts Receivable Report must include
the following certification statement immediately above the applicant/insured signature. ***
“I certify that to the best of my knowledge and belief all of the information on this form is
correct. I understand the information on this form may be reviewed and audited. I understand
that inaccurate information or my failure to retain or provide, upon request, records supporting
the information on this form may result in denial of coverage, cancellation of my policy,
ineligibility for indemnity, or recalculation of insured revenue. I also understand that failure to
report completely and accurately may result in sanctions under my policy, including but not
limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7
U.S.C. §1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

(4)

October 2022

The Accounts Receivable Report must include: ***
(a)

Collection of Information and Data (Privacy Act) Statement;

(b)

Nondiscrimination Statement; and

(c)

AIP Name and Address.

FCIC-18160-1

118

Exhibit 3
J.

Form Standards (Continued)

Market Animal and Nursery Inventory Report
(1)

AIPs are responsible for developing the “Market Animal and Nursery Inventory Report” form. If
a farm has animals or nursery, this form will be used in addition to the Inventory and Accounts
Receivable form to handle the inventory for the animals and nursery. The AIPs are NOT
authorized to modify or delete any of the required elements. Refer to Exhibit 7 for the Market
Animal and Nursery Inventory Report required elements and example.

(2)

If applicable, beginning and ending inventories are necessary to determine the RTC for animals
and nursery plants marketed during the insurance period on an accrual basis. A complete
inventory of breeding and market animals and nursery stock must be documented in Part 2 of
the Market Animal and Nursery Inventory. Part 3 is used to support the number of (inventory)
market animals and to document culled breeding animals transferred from the breeding
category to the market category and sold during the insurance period. Breeding animals
produced on the farm or purchased as assets are accounted for using breeding animal
inventories. Sales of breeding stock, including culls, are normally reported on Form 4797 (Sale
of Business Property). Such income should not be reported on Schedule F but may be.
However, there may be instances where culls are placed in a finishing operation and may be
reclassified as market animals. Any culls that are reclassified as market animals and the sale of
such animals is reported on the Schedule F, adjustments to the beginning inventory and the
FOR are required. Otherwise, the sale of breeding animals or culls that is reported on Form
4797 are considered uninsured animals and not included as allowable revenue or RTC. When
applicable, a complete beginning inventory for animals and nursery commodities that will be
marketed, including breeding or cull animals transferred to the market category, must be
provided to the AIP on or before the SCD for calendar year tax filers. For an early or late fiscal
year filer, it must be provided the later of the date the insured submits their application or last
day of the month in which the fiscal year begins.

(3)

An ending inventory must also be completed if an indemnity is to be claimed. Part 4 calculates
the RTC for claim purposes using increases or decreases in inventory values during the
insurance period. The cost or basis for animals or nursery commodities purchased for resale
during the insurance period and are not sold by the end of the insurance period are transferred
to the Market Animal and Nursery Inventory Report and must be removed from the ending
inventory prior to making inventory adjustments on the claim. Animals must be grouped
according to the type/category corresponding to how they will be marketed to accurately value
them. Local market value is determined at the beginning of the insurance period for beginning
inventories, and for ending inventories at the end of the insurance period for each applicable
type/category.

(4)

If animals are marketed in pounds, gross inventory values will be determined by multiplying the
number of animals × the average lbs. per animal for the type/category × applicable value/price
per lb.

October 2022

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119

Exhibit 3
J.

Form Standards (Continued)

Market Animal and Nursery Inventory Report (Continued)
(5)

For animals sold individually (by the head/animal), inventory values will be measured by
multiplying the number of animals/livestock × the average value/price per animal for the
type/category.

(6)

Complete the beginning inventory (breeding animal inventory and market animal inventory for
each applicable type/category of animals on hand at the beginning of the insurance period.
Complete the ending inventory for animals that are on hand at the end of the insurance period.
Include on the breeding animal inventory animals/livestock from which income is accounted for
as gains or losses on Schedule D (Form 1040), Form 4797 (animals held for breeding, dairy
purposes, or not held primarily for sale), or is depreciated on Form 4799.

(7)

In place of the certification statement in DSSH, the Market Animal and Nursery Inventory
Report must include the following certification statement immediately above the
applicant/insured signature.
“I certify that to the best of my knowledge and belief all of the information on this form is
correct. I understand the information on this form may be reviewed and audited, and used to
determine my loss, if any, for the policy listed above. I understand that inaccurate information
or my failure to retain or provide, upon request, records supporting the information on this
form may result in denial of coverage, cancellation of my policy, ineligibility for indemnity, or
recalculation of insured revenue. I also understand that failure to report completely and
accurately may result in sanctions under my policy, including but not limited to voidance of the
policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C.
§3729, §3730 and any other applicable federal statutes).”

(8)

The Market Animal and Nursery Inventory Report must include:
(a)

Collection of Information and Data (Privacy Act) Statement;

(b)

Nondiscrimination Statement; and

(c)

AIP Name and Address.

Farm Operation Report
(1)

The AIPs are responsible for developing the FOR form. The FOR must be titled “FARM
OPERATION REPORT.” The AIPs are not authorized to modify or delete any of the required
elements. Refer to Exhibit 8 for the FOR required elements and example.

(2)

In place of the certification statement in the DSSH, the FOR must include the following
certification statements immediately above the applicant/insured signature.

October 2022

FCIC-18160-1

120

Exhibit 3
K.

Form Standards (Continued)

Farm Operation Report (Continued)
“I certify that to the best of my knowledge and belief all of the information on this form is
correct. I understand that changes to intended commodities grown will result in changes to the
insured revenue, premium rate, and indemnity. I understand the information on this form may
be reviewed and audited. I understand that inaccurate information or my failure to retain or
provide, upon request, records supporting the information on this form may result in denial of
coverage, cancellation of my policy, ineligibility for indemnity, or recalculation of approved
revenue. I also understand that failure to report completely and accurately may result in
sanctions under my policy, including but not limited to voidance of the policy, and in criminal or
civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C. §3729, §3730 and any
other applicable federal statutes).”
(3)

The FOR must include:
(a)

Collection of Information and Data (Privacy Act) Statement;

(b)

Nondiscrimination Statement; and

(c)

AIP Name and Address.

Replant Payment Worksheet
(1)

The AIPs are responsible for developing the Replant Payment Worksheet form. The Replant
Payment Worksheet must be titled “REPLANT PAYMENT WORKSHEET.” The AIPs are not
authorized to modify or delete any of the required elements. Refer to Exhibit 11 for the
Replant Payment Worksheet required elements and example.

(2)

In place of the certification statement in DSSH, the Replant Payment Worksheet must include
the following certification statement immediately above the applicant/insured signature.
“I certify that to the best of my knowledge and belief all of the information on this form is
correct. I understand the information on this form may be reviewed and audited. I understand
that inaccurate information or my failure to retain or provide, upon request, records supporting
the information on this form may result in denial of coverage, cancellation of my policy,
ineligibility for indemnity, or recalculation of insured revenue. I also understand that failure to
report completely and accurately may result in sanctions under my policy, including but not
limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7
U.S.C. §1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

(3)

October 2022

The Replant Payment Worksheet form must include:
(a)

Collection of Information and Data (Privacy Act) Statement;

(b)

Nondiscrimination Statement; and

(c)

AIP Name and Address.

FCIC-18160-1

121

Exhibit 3
M.

Form Standards (Continued)

Substitute Schedule F
(1)

The Substitute Schedule F is a required document used to document an applicant’s/insured’s
farm income and expenses for each year the applicant/insured did not file a Schedule F with the
IRS. This form is used in the same manner as the Schedule F. The Substitute Schedule F is the
current year Schedule F used by the IRS and must be titled “SUBSTITUTE SCHEDULE F FOR WFRP
PURPOSES.” Refer to Exhibit 13 for the Substitute Schedule F required elements and example.
***

(2)

In place of the certification statement in DSSH, the Substitute Schedule F must include the
following certification statement immediately above the applicant/insured signature.
“I certify that to the best of my knowledge and belief all of the information on this form is
correct. I understand the information on this form may be reviewed and audited. I understand
that inaccurate information or my failure to retain or provide, upon request, records supporting
the information on this form may result in denial of coverage, cancellation of my policy,
ineligibility for indemnity, or recalculation of insured revenue. I also understand that failure to
report completely and accurately may result in sanctions under my policy, including but not
limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7
U.S.C. §1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

(3)

The Substitutes Schedule F must include:
(a)

Collection of Information and Data (Privacy Act) Statement;

(b)

Nondiscrimination Statement; and

(c)

AIP Name and Address.

Yield and Revenue Report
(1)

The AIPs are responsible for developing the Yield and Revenue Report. The Yield and Revenue
Report must be titled “YIELD AND REVENUE REPORT.” The AIPs are not authorized to modify or
delete any of the required elements. Refer to Exhibit 10 for the Yield and Revenue Report
required elements and example.

(2)

In place of the certification statement in DSSH, the Yield and Revenue Report must include the
following certification statement immediately above the applicant/insured signature.

October 2022

FCIC-18160-1

122

Exhibit 3
N.

Form Standards (Continued)

Yield and Revenue Report (Continued)
“I certify that to the best of my knowledge and belief all of the information on this form is
correct. I understand that changes to intended commodities grown will result in changes to the
insured revenue, premium rate, and indemnity. I understand the information on this form may
be reviewed and audited. I understand that inaccurate information or my failure to retain or
provide, upon request, records supporting the information on this form may result in denial of
coverage, cancellation of my policy, ineligibility for indemnity, or recalculation of approved
revenue. I also understand that failure to report completely and accurately may result in
sanctions under my policy, including but not limited to voidance of the policy, and in criminal or
civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C. §3729, §3730 and any
other applicable federal statutes).”

Allowable Revenue Worksheet
(1)

The Allowable Revenue Worksheet is a required worksheet that the AIPs must use to determine
an applicant’s/insured’s allowable revenue for each year in the whole-farm history period. The
worksheet assists in identifying and documenting required adjustments to the
applicant’s/insured’s tax reported revenue. The Allowable Revenue Worksheet must be titled
“ALLOWABLE REVENUE WORKSHEET.” Refer to Exhibit 14 for the Allowable Revenue
Worksheet required elements and example.

(2)

In place of the certification statement in DSSH, the Allowable Revenue Worksheet must include
the following certification statement immediately above the applicant/insured signature.
“I certify that to the best of my knowledge and belief all of the information on this form is
correct. I understand the information on this form may be reviewed and audited. I understand
that inaccurate information or my failure to retain or provide, upon request, records supporting
the information on this form may result in denial of coverage, cancellation of my policy,
ineligibility for indemnity, or recalculation of insured revenue. I also understand that failure to
report completely and accurately may result in sanctions under my policy, including but not
limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7
U.S.C. §1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

(3)

October 2022

The Allowable Revenue Worksheet must include:
(a)

Collection of Information and Data (Privacy Act) Statement;

(b)

Nondiscrimination Statement; and

(c)

AIP Name and Address.

FCIC-18160-1

123

Exhibit 3
P.

Form Standards (Continued)

Claim for Indemnity Report
(1)

The AIPs are responsible for developing the Claim for Indemnity Report. The Claim for
Indemnity Report must be titled “CLAIM FOR INDEMNITY REPORT.” The AIPs are not
authorized to modify or delete any of the required elements. Refer to Exhibit 15 for the Claim
for Indemnity Report required elements and example.

(2)

In place of the certification statement in DSSH, the Claim for Indemnity Report must include the
following certification statement immediately above the applicant/insured signature.
“I certify that to the best of my knowledge and belief all of the information on this form is
correct. I understand the information on this form may be reviewed and audited, and used to
determine my loss, if any, for the policy listed above. I understand that inaccurate information
or my failure to retain or provide, upon request, records supporting the information on this
form may result in denial of coverage, cancellation of my policy, ineligibility for indemnity, or
recalculation of insured revenue. I also understand that failure to report completely and
accurately may result in sanctions under my policy, including but not limited to voidance of the
policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C.
§3729, §3730 and any other applicable federal statutes).”

(3)

The Claim for Indemnity Report must be:
(a)

Collection of Information and Data (Privacy Act) Statement;

(b)

Nondiscrimination Statement; and

(c)

AIP Name and Address.

Expected Value and Yield Source Document Certification Worksheet
(1)

The AIPs are responsible for developing the Expected Value and Yield Source Document
Certification Worksheet. The Expected Value and Yield Source Document Certification
Worksheet must be titled “EXPECTED VALUE AND YIELD SOURCE DOCUMENT CERTIFICATION
WORKSHEET.” The AIPs are not authorized to modify or delete any of the required elements.
Refer to Exhibit 9 for the Expected Yield and Value Source Document Certification Worksheet
required elements and example.

(2)

In place of the certification statement in DSSH, the Expected Value and Yield Source Document
Certification Worksheet must include the following certification statement immediately above
the applicant/insured signature.

October 2022

FCIC-18160-1

124

Exhibit 3
Q.

Form Standards (Continued)

Expected Value and Yield Source Document Certification Worksheet (Continued)
“I certify that to the best of my knowledge and belief all of the information on this form is
correct. I understand the information on this form may be reviewed and audited, and used to
determine my loss, if any, for the policy listed above. I understand that inaccurate information
or my failure to retain or provide, upon request, records supporting the information on this
form may result in denial of coverage, cancellation of my policy, ineligibility for indemnity, or
recalculation of insured revenue. I also understand that failure to report completely and
accurately may result in sanctions under my policy, including but not limited to voidance of the
policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C.
§3729, §3730 and any other applicable federal statutes).”
(3)

October 2022

The Expected Value and Yield Source Document Certification Worksheet must include:
(a)

Collection of Information and Data (Privacy Act) Statement;

(b)

Nondiscrimination Statement; and

(c)

AIP Name and Address.

FCIC-18160-1

125

Exhibit 4

Whole-Farm History Report

The following table provides descriptions of the WFHR form required elements.
Item Required Element
1.
Producer
Information:

2.
3.
4.
5.
6(ae).
7(ae).

Agency
Information:
Policy Year:
IRS Accounting
Method:
State/County:
Tax Year
Allowable
Revenue

Description
Name, address, telephone number, and tax ID, such as social security number
or employer identification number for the applicant/insured. Also includes the
person type the applicant/insured used to file their Federal income taxes.
The applicant/insured must be the same person and person type as the person
designated on the United States Federal Income Tax form(s).
Name, address, telephone number and code number of the agent. Include
policy number for carryover insureds.
The current policy year. Includes beginning and ending month of fiscal year if
applicant/insured filed Federal taxes on fiscal year basis.
IRS accounting method, cash or accrual, used by applicant/insured.
State and county where the majority of the total expected revenue for the
policy year will be derived.
The five consecutive tax years prior to the policy year, not including the lag
year.
Enter the allowable revenue that corresponds to each year entered in items
6(a-e) (item 12 of Allowable Revenue Worksheet).
Exceptions:
(1)

(2)

(3)
October 2022

For a qualifying person with four years of farm tax forms in their
whole-farm history period enter:
(a)

in item 7(a) the allowable revenue that corresponds to the
lag year; and

(b)

in items 7(b-e), the allowable revenue that corresponds to
the tax year entered in items 6(b-e).

For a qualifying person with three years of farm tax forms in their
whole farm history period enter:
(a)

in item 7(a), the allowable revenue that is the lowest of items
7(b-e);

(b)

in item 7(b), the allowable revenue that corresponds with the
lag year; and

(c)

in items 7(c-e), the allowable revenue that corresponds with
the tax years entered in item 6(c-e).

For a qualifying person that elects Micro Farm with four years of tax
records in the whole-farm history period enter:
FCIC-18160-1

126

Exhibit 4
Item
7(ae).

Whole-Farm History Report (Continued)

Required Element
Allowable Revenue
(Continued)

(a)
(b)

(4)

Description
in item 7(a) the allowable revenue that is the lowest of
items 7(b-e); and
in items 7(b-e) the allowable revenue that
corresponds with the tax years entered in items 6(be).

For a qualifying person that elects Micro Farm with three years
of tax records in the whole-farm history period enter:
(a)

in item 7(a) and (b) the allowable revenue that is the
lowest of items 7(c-e); and

(b)

8(ae).
9(ae).
10.
a.

Indexed Revenue

Total Indexed Revenue

c.
11.
a.

***
Simple Average
Simple Average
Allowable Revenue
Simple Average Indexed
Revenue

b.
12.
a.
b.
13.
a.
b.
14.

***
Total
Total Allowable Revenue

Revenue Substitution
Revenue Substitution
Average Revenue
Revenue Substitution
Average Indexed
Revenue
Revenue Exclusion
Revenue Exclusion
Average Revenue
Revenue Exclusion
Average Indexed
Revenue
Revenue Cup

October 2022

in items 7(c-e), the allowable revenue that
corresponds with the tax years entered in items 6(c-e).
Enter the indexed revenue for each year that corresponds with the tax
years entered in items 6(a-e). Refer to Subparagraph 71C.
MAKE NO ENTRY. ***
Enter the result of adding the allowable revenue for all tax years entered
in item 6.
Enter the result of adding the indexed revenue for all tax years entered
in item 6.
MAKE NO ENTRY. ***
Enter the result of dividing item 10a by five. Refer to Subparagraph 71A.
Enter the result of dividing item 10b by five, not to exceed the highest
allowable revenue amount in column 7(a-e). Refer to Subparagraph
71C(2).
If elected, enter the sum of the allowable revenue for all tax years
divided by five after following procedures in Subparagraph 71B(1).
If elected, enter the sum of the indexed revenue for all tax years divided
by five after following procedures in Subparagraph 71B(1).
If elected, enter the sum of the allowable revenue for all tax years
divided by four after following procedures in Subparagraph 71B(2).
If elected, enter the sum of the indexed revenue for all tax years divided
by four after following procedures in Subparagraph 71B(2).
Carryover Insureds Only: If elected, enter the result of multiplying the
insured’s previous year’s approved revenue by 0.90.
FCIC-18160-1

127

Exhibit 4

Whole-Farm History Report (Continued)

Item
Required Element
15.
Expanded Operation
16.
a.

Average
Average Allowable
Revenue

Description
If applicable, enter the result of the calculation in Subparagraph 71. For
Micro Farm, MAKE NO ENTRY.
(1)

If no insurance option elected, enter the simple average (item
11a).

(2)

If an insurance option is elected, enter the amount for the
applicable option elected (12a or 13a).

(3)

If the insured elects more than one option, enter the amount
for the option with the highest result (12a or 13a).
If indexing is elected, but no insurance options are elected,
enter the simple average indexed revenue (item 11b), not to
exceed the highest allowable revenue amount in items 7(a-e).

Indexed Average Revenue (1)

(2)

If indexing is elected and an insurance option is elected, enter
the amount for the applicable option elected (item 12b or 13b),
not to exceed the highest allowable revenue amount in items
7(a-e).

(3)
c.
17.

18.

19.

***
Indexing:
Yes ☐
No ☐
Insurance Options:
Substitution: 
Exclusion:

Cup:

Important:
If more than one option is
selected, the option with
highest amount will be
considered elected in
determination of their
whole-farm historic
average.
Whole-Farm Historic
Average

October 2022

If the insured elects more than one option, enter the amount
for the option with the highest result (12b or 13b) not to
exceed the highest allowable revenue amount in items 7(a-e).
MAKE NO ENTRY. ***
Check Yes if the producer chooses to use the indexed average, otherwise
check No.
Note:

Indexed Average not allowed for persons with less than five
years of farm tax forms in their whole-farm history period.
Select the insurance option(s) the insured elects to use in determination
of their whole-farm historic average.

Enter the greater of item 14 (if elected), 15, 16a, or 16b.

FCIC-18160-1

128

Exhibit 4
Item
20.
21.

Whole-Farm History Report (Continued)

The following required entries are not illustrated on the WFHR example below.
Required Element
Description
Applicant/Insured
Applicant/insured signature and date.
Signature and Date
AIP Representative
AIP Representative signature and date.
Signature and Date

Refer to Exhibit 3 for required certification and other statements.

October 2022

FCIC-18160-1

129

Exhibit 4

Whole-Farm History Report (Continued)

The following is an example only. It is an example WFHR. AIPs must develop a WFHR using the required
elements and statements.

October 2022

FCIC-18160-1

130

Exhibit 5

Inventory Report

The following table provides descriptions of the Inventory Report required elements.
Item
1.
2.
3.

4.
5.
6.

Required
Element
IRS Accounting
Method:
Policy Year:
Producer
Information:

Agency
Information:
State/County:
Commodity
Name

PART 1: Producer Information
Description
The accounting method, cash or accrual, the applicant/insured used to file Federal
income tax with IRS for the policy year.
The current policy year. Includes beginning and ending month of fiscal year if
applicant/insured filed Federal tax on fiscal year basis.
Name, address, telephone number, and tax ID, such as social security number or
employer identification number for the applicant/insured. Also includes the
person type the applicant/insured used to file their Federal taxes.
The applicant/insured must be the same person and person type as the person
designated on the United States Income Tax form(s).
Name, address, telephone number and code number of the agent. Include policy
number.
State and county where the majority of the total expected revenue for the policy
year will be derived.
Name of each commodity required to be inventoried.
For beginning inventory commodities, include all commodities on hand at the
beginning of the insurance period that were not sold, or were not under contract
with a buyer for a specified price, including but not limited to, commodities stored
on the farm, in commercial storage, and delivered to a processor/warehouse but
not sold.
For ending inventory commodities, include all commodities produced or purchased
for resale during the insurance period on hand at the end of the insurance period
that were not sold, or were not under contract with a buyer for a specified price,
including but not limited to, commodities stored on the farm, in commercial
storage, and delivered to a processor/warehouse but not sold.
Each different commodity must be on a separate line. In addition, list the same
commodity on separate line items when the same commodity has substantially
different value or will be fed.
Example:

October 2022

Part of the production of a commodity is sold to a processor and
part is sold direct in the fresh market. The value of the production
sold to a processor is substantially different than the value of
production sold direct in the fresh market.

FCIC-18160-1

131

Exhibit 5

Item
7.

Inventory Report (Continued)
Required
Element
Location(s)

PART 2: Beginning Inventory (First day of the Insurance Period)
Description
Location of the commodity.
Example:

Beginning
Inventory

Insured has corn stored on his farm and potatoes stored at CA
Storage Inc., a commercial storage facility. The location of the
corn is the insured’s farm address and the location of the
potatoes is the address for the CA Storage Inc. warehouse where
the potatoes are stored.
Total amount of the commodity produced or purchased for resale in a year
previous to the current insurance period that was not sold, fed, lost during
storage, bartered, or otherwise disposed of prior to the beginning of the current
insurance period, and will be sold, fed, bartered, or otherwise disposed of during
the current insurance period. Amounts must be in the unit of measure in which
the commodity is marketed, such as bushels, pounds, tons, boxes, cartons, etc.
Enter the applicable unit of measure immediately after the amount.
Important:

Item
9.

Verifiable records supporting the amount reported must be
provided.

PART 3: Beginning Inventory (Value end of Insurance Period)
Required
Description
Element
Value
For beginning inventories of commodities:

October 2022

(1)

sold on or before the end of the insurance period, enter the amount
received, not less than zero;

(2)

bartered on or before the end of the insurance period and the fair
market price of the barter was reported to IRS, enter “0”;

(3)

bartered on or before the end of the insurance period but the price of
the barter was not reported to IRS, enter the fair market value of the
barter;

(4)

not sold but will be otherwise disposed of, such as fed, on or before the
end of the insurance period, enter “0”; and

(5)

carried over to the subsequent insurance period, enter the local market
value, not less than zero, of the commodity on the last day of the
insurance period.

FCIC-18160-1

132

Exhibit 5
Item
9.

Inventory Report (Continued)

Required
Element
Value
(Continued)

Description
For claims purposes, beginning inventories will be valued at the:
(1)

actual price received if the commodity is sold prior to the time the claim is
finalized, not less than zero; or

(2)

local market value, not less than zero, on the first day of the month in which
the claim is finalized based on the same applicable source used to determine
the expected value on the FOR.

Example:

10
11.

Cost or Basis
Value
Received

Important: Verifiable records supporting the amount reported must be provided.
Make no entry.
Result of multiplying item 8 × item 9.
Separate entries are required when the commodity is disposed of in more than one
method.
Example:

Required
Item
Element
12.
Location

If a local source was approved as the basis for the expected value, the
AIP should make every effort to value the ending inventory at claim
time under the same basis.

Insured had 1,000 bushels of farm stored corn in beginning inventory.
During the insurance period, they sold 900 bushels, fed 70 bushels to
his pet donkey, and 30 bushels were lost during storage. Each amount
(900, 70 and 30) is a separate entry.

PART 4: Ending Inventory (Last Day of Insurance Period)
Description
Location of the commodity.
Example:

13.

Ending
Inventory

Insured has corn stored on his farm and potatoes stored at CA Storage
Inc., a commercial storage facility. The location of the corn is the
insured’s farm address and the location of the potatoes is the address
for the CA Storage Inc. warehouse where the potatoes are stored.
Total amount of the commodity produced or purchased for resale in the current
insurance period that was not sold or otherwise disposed of prior to the end of the
current insurance period. Amount must be in the unit of measure in which the
commodity is marketed, such as bushels, pounds, tons, boxes, cartons, etc. Enter the
applicable unit of measure immediately after the amount.
Important:

October 2022

Verifiable records supporting the amount reported must be provided.

FCIC-18160-1

133

Exhibit 5
Item
14.

Inventory Report (Continued)

Required
Element
Average
Value

Description
For ending inventories, enter the local market value, not less than zero, of the
commodity on the last day of the insured’s tax period. For commodities produced but
not intended to be sold, such as livestock feed, enter “0.”
For claims purposes, ending inventories will be valued at the local market value, not
less than zero, on the first day of the month in which the claim is finalized based on
the same applicable source used to determine the expected value on the FOR. For
commodities produced but not intended to be sold, such as livestock feed, enter “0.”
Example:

15.
16.
17.
18.

Item
19.

Item
20.
21.

Cost or
Basis
Net Value

If a local source was approved as the basis for the expected value, the AIP
should make every effort to value the ending inventory at claim time
under the same basis.
The cost of inventoried commodities purchased for resale during the insurance period
but was not sold or otherwise disposed of prior to the end of the insurance period.
Result of multiplying item 13 × item 14, then subtracting the amount in item 15 if
applicable.
Total of column 11.

Total
Beginning
Value
Total Ending Total of column 16.
Value

PART 5: Inventory Adjustment (To be completed only if a claim is filed)
Required
Description
Element
Adjustments
Subtract the amount in item 17 from the amount in item 18. The result, either a
positive or negative number, will be entered in item 26 on the Claim for Indemnity
Form.
The following required entries are not illustrated on the Inventory Report example below.
Required Element
Description
Applicant/Insured Signature and Date
Applicant/Insured signature and date.
Agent’s Signature and Date
Agent’s signature and date.

Refer to Exhibit 3 for required certification and other statements.

October 2022

FCIC-18160-1

134

Exhibit 5

Inventory Report (Continued)

The following is provided as an example only. AIPs must develop an Inventory and Accounts Receivable Report using the required elements and
statements.

October 2022

FCIC-18160-1

135

Exhibit 6

Accounts Receivable Report

The following table provides descriptions of the Accounts Receivable Report required elements. ***

Item
1.

Required
Element
Name

2.
3.

Policy Number
Policy Year

Agency
Information

Item
5.

Required
Element
Commodity
Name

PART 1: PRODUCER INFORMATION
Description
The name of the applicant/insured.
The applicant/insured must be the same person and person type as the person
designated on the United States Income Tax form(s).
The insured’s assigned policy number.
The current policy year. Includes beginning and ending month of fiscal year if
applicant/insured filed Federal tax on fiscal year basis.
The name, address, telephone number, and code number of the agent that
provides insurance service to the insured.
PART 2: ACCOUNTS RECEIVABLE
Description
Name of insured commodity sold at a specified price, but which full payment has
not been received at the beginning or ending of the insurance period, regardless of
the location of the commodity.
Example:

6.
7.

Name and
Address of
Buyer
Beginning
Amount
(Dollars)

October 2022

Insured had sold and delivered 100 pounds of cucumbers to CA
Processor Inc. for $0.10 per pound. However, at the beginning of the
insurance period, insured has not received full payment for the
commodity. The cucumbers are included in item 5 even though they
were delivered because full payment has not been received.
Name of buyer for each commodity in item 5.
Total dollar amount receivable for each insured commodity in item 5 that have been
sold at a specified price but which full payment has not been received at the
beginning of the insurance period, regardless of the location of the commodity.
Important:

Verifiable records supporting the amount must be provided.
Verifiable records must be provided for each commodity for which
full payment has not been received.

Example:

Insured sold and delivered 100 pounds of cucumbers to CA Processor
Inc. for $0.10 per pound and 100 pounds of apples to WA Processor
Inc. for $0.12 per pound. At the beginning of the insurance period,
the insured has not received full payment for either commodity.
Insured would report $10.00 in item 7 as the amount receivable for
cucumbers and $12.00 in item 7 as the amount receivable for apple.
Insured must provide verifiable records for the cucumbers and apples
sold.
FCIC-18160-1

136

Exhibit 6
Item
8.

Accounts Receivable Report (Continued)
Required
Element
Ending Amount
(Dollars)

Balance (8 – 7)

10.

Total Accounts
Receivable
Adjustments to
Claim (Dollars)

***

Description
Total dollar amount receivable for each insured commodity in item 5 that has
been sold at a specified price, but which full payment has not been received at
the end of the insurance period, regardless of the location of the commodity.
Important:

Verifiable records supporting the amount must be provided for
each commodity for which full payment has not been received.

Example:

Insured produced and sold 1,000 bushels of corn during the
insurance period. At the end of the insurance period, the insured
has not received full payment for the corn. Insured would report
$4,000.00 in item 8 as the amount receivable for corn. Insured
would have to provide verifiable records for the amount of corn
sold.

The ending amount for the current insurance period becomes the beginning
amount for the subsequent insurance period.
The change in accounts receivable for each commodity in item 5. For each
commodity, subtract the beginning amount (item 7) from the ending amount
(item 8). The result can be positive or negative.
Total change in accounts receivable from all insured commodities. Sum the
result of item 9 for each commodity. The result can be positive or negative.
Round to the nearest whole dollar. This entry will be transferred to item 27 of
the Claim for Indemnity form at claim time.

The following required entries are not illustrated on the Accounts Receivable Report example below.
Item
Required
Description
Element
11.
Applicant/Insur Applicant/Insured signature and date.
ed Signature
and Date
12.
AIP
AIP representative signature and date.
Representative
Signature and
Date
Refer to Exhibit 3 for required certification and other statements.

October 2022

FCIC-18160-1

137

Exhibit 6

Accounts Receivable Report (Continued)

The following is provided as an example only. AIPs must develop an Accounts Receivable Report using the required elements and statements.

October 2022

FCIC-18160-1

138

Exhibit 7

Market Animal and Nursery Inventory Report

The following table provides descriptions of the Market Animal and Nursery Inventory Report form required
elements.

Item
1.

Required
Element
Name

2.
3.

Policy Number
Policy Year

Agency
Information

Part 1: Producer Information
Description
The name of the applicant/insured.
The applicant/insured must be the same person and person type as the person
designated on the IRS Income Tax form(s).
The insured’s assigned policy number.
The current policy year. Includes beginning and ending month of fiscal year
insured is an early or late fiscal year filer.
The name, address, telephone number, and code number of the agent that
provides insurance service to the insured.
Part 2: Breeding Livestock

Type of Animal or Commodities
Required
Item
Description
Element
5.
Type/Category
The type/category of breeding animals. A separate line entry must be made for
each type of animal.
Section A: Beginning Inventory the First Day of the Insurance Period
Item Required
Description
Element
For each type/category) of animals in Column 5, enter the number on hand at the
6.
Number
beginning of the insurance period.
Section B: Ending Inventory on the Last Day of the Insurance Period
Item Required
Description
Element
7.
Number
The number of breeding animals on hand at the end of the insurance period. If
breeding animals in beginning inventory will be carried over to the subsequent policy
year, enter the number to be carried over. If all breeding animals in the beginning
inventory on the line were disposed of, enter “0.” For breeding animals purchased or
produced during the insurance period that will be carried over, enter number
purchased and the number produced on separate lines. If applicable, enter the
applicable type/category in Column 5.

October 2022

FCIC-18160-1

139

Exhibit 7

Market Animal and Nursery Inventory Report (Continued)
Part 3: Market Animals or Nursery

Type of Animals or Commodities
Required
Description
Item
Element
8.
Type/Category ***
Make a separate line entry for each type/category of animal, animal products,
nursery, or greenhouse commodities. Do not include breeding animals that are
not intended to be sold during the insurance period.
Make a separate line entry for each type/category of animal, nursery, or
greenhouse commodity that was on hand at the beginning of the insurance period
and died due to insured causes during the insurance period.
Make a separate line entry for each type/category of animal, nursery, or
greenhouse commodity that was on hand at the beginning of the insured’s tax year
but sold prior to insurance attaching.
Make a separate line entry for each type/category of animal, nursery, or
greenhouse commodity when the cost/basis is greater than the sold price of the
commodity.
Refer to AD for additional information concerning type/category.
Section A: Beginning Inventory – First Day of The Insurance Period
9. Number
For each type/category of animals, animal products, nursery, or greenhouse
commodities in column 8, enter the number on hand at the beginning of the
insurance period.
10. Average Weight, Animals or Animal Products: The average weight at the beginning of the insurance
period for animals marketed in pounds. For animals sold individually or that died
Container Size,
(e.g., baby calves or weaning pigs sold by the head), enter a dash (-).
etc.
Nursery or Greenhouse: The average container size (or other applicable unit) at
the beginning of the insurance period. For those nursery or greenhouse
commodities that died during the insurance period, enter a dash (-).
11. Average Value
Animals or Animal Products: Enter:
(1)

for animals marketed in pounds, the average value per animal at the
beginning of the insurance period;

(2)

for animals sold individually, the average value per animal at the beginning
of the insurance period or the insured’ tax year but sold prior to insurance
attaching, if applicable; or

(3)

for animals that died due to insured causes during the insurance period, a
dash (-).

Nursery or Greenhouse: Enter:
(1)

October 2022

for commodities raised or purchased for resale, enter the average value
per commodity at the beginning of the insurance period or the insured’ tax
year but sold prior to insurance attaching, if applicable; or
FCIC-18160-1

140

Exhibit 7
Item
11
12.

Market Animal and Nursery Inventory Report (Continued)

Required
Element
Average Value
(Continued)
Average
Value/Unit

Description
(2)

for commodities that died during the insurance period, a dash (-).

The average value per animal, animal products, nursery, or greenhouse
commodities entered on the line.
(1)

For animals marketed in pounds, multiply the average weight (column 10)
× the average value (column 11).

(2)
13.

Total $ Value

14.

Actual Cost
(Claims Only)

15.

Net Value
(Claims Only)

For animals sold individually and nursery and greenhouse commodities
enter the same value as column 11.
The total value of all the animals, animal products, nursery, or greenhouse
commodities entered on the line. Multiply the number of commodities (column
9) × the average value (column 12).

This value is the cost/basis that is transferred to the FOR.
For Claim Purposes Only: Enter the actual cost, when purchased, for those
commodities that were purchased in a previous year(s). If commodities listed on
the line were not purchased, make no entry.
Enter the result of subtracting item 14 from item 13. If no entry in item 14, enter
the value from item 13.

Section B: Ending Inventory – Last Day of the Insurance Period
Required
Item
Description
Element
Animals or Animal Products: The number of animals on hand at the end of the
16.
Number
insurance period, including those animals that died due to insured causes or the
cost/basis was greater than sold price during the insurance period. If animals in
beginning inventory will be carried over to the subsequent insurance period, enter
the number to be carried over. If all animals in the beginning inventory on the line
were disposed of, enter “0.” For animals purchased or produced during the
insurance period that will be carried over, enter number purchased and the
number produced on separate lines.

17.

Average
Weight,
Container Size,
etc.

October 2022

Nursery or Greenhouse: The number of plants on hand at the end of the insurance
period, including those commodities that died due to insured causes or the
cost/basis was greater than sold price during the insurance period. If plants in
beginning inventory will be carried over to the subsequent insurance period, enter
the number to be carried over. If all plants in the beginning inventory on the line
were disposed of, enter “0.” For plants purchased or produced during the
insurance period that will be carried over, enter number purchased and the
number produced on separate lines.
Animals or Animal Products: Enter:
(1)

for animals marketed in pounds, enter the average weight at the end of the
insurance period for the type/category reported.

(2)

for animals sold individually, being depreciated, or the cost/basis is greater
than the sold price, a dash (-).

(3)

for animals that died due to insured causes during the insurance period,
transfer the entry from column 10 of the same type/category.

FCIC-18160-1

141

Exhibit 7

Market Animal and Nursery Inventory Report (Continued)

Item
Required Element
17.
Average Weight,
Container Size, etc.
(Continued)

Nursery or Greenhouse: Enter:
(f1)

Description

for plants sold individually or the cost/basis is greater than the sold
price, a dash (-).

(2)

18.

Average Value

for plants that died due to insured causes during the insurance
period, the entry from column 10 of the same type/category.
Animals or Animal Products: Enter:
(1)

for animals marketed in pounds at the end of the insurance period,
the average value per pound;

(2)

for animals sold individually, the average value per animal at the end
of the tax year; or

(3)

for animals that died due to insured causes during the insurance
period, the entry from column 11 of the same type/category.

(4)

for animals that have a cost/basis greater than the sold price, the
result of subtracting the sold price from the cost/basis.

Nursery or Greenhouse: Enter:
(1)

for plants sold individually, enter the average value per plant at the
end of the insurance period; or

(2)

for plants that died due to insured causes during the insurance
period, the entry from column 11 of the same type/category.

(3)
19.

Average Value/Unit

for plants that have a cost/basis greater than the sold price, the
result of subtracting the sold price from the cost/basis.
The average value per animal, animal products, nursery, or greenhouse
commodities entered on the line.

(1)

for animals marketed in pounds, multiply the average weight (column
17) × the average value (column 18).

(2)
20.

Total $ Value

21.

Cost or Basis

22.

Net Value

23.
24.

Total Beginning Value
Total Ending Value
Less Cost or Basis

October 2022

for animals sold individually, and nursery and greenhouse
commodities, and commodities that have a cost/basis greater than
the sold price, enter the same value as column 18.
Enter the result of multiplying the number of commodities (column 16) ×
the average value (column 19).
Enter the actual cost, when purchased, for commodities that were
purchased in the insurance period and previous year(s), if applicable. If
commodities listed on the line were not purchased, make no entry.
The net value of animals, animal products, nursery, and greenhouse
commodities on hand at the end of the insurance period. Enter the result
of subtracting the amount in column 21 from column 20.
Total of Column 15.
Total of Column 22.

FCIC-18160-1

142

Exhibit 7

Item
25.

Market Animal and Nursery Inventory Report (Continued)

Required
Element
Adjustment

Part 4: Inventory Adjustment (To Be Completed Only if a Claim Filed)
Description
Subtract the amount in item 23 from the amount in item 24. The amount can be
either a positive number or a negative number. Transfer the amount to the Claim
for Indemnity for (item 28).

The following required entries are not illustrated on the Market Animal and Nursery Inventory Report
example below.
Item
Required Element
Description
Applicant/Insured
Signature
and Date @ SCD
26.
Applicant/Insured Signature and
Date
AIP Representative Signature and Date @ end of insurance
27.
AIP Representative Signature and
period.
Date
Refer to Exhibit 3 for required certification and other statements.

October 2022

FCIC-18160-1

143

Exhibit 7

Market Animal and Nursery Inventory Report (Continued)

The following is provided as an example only. AIPs must develop a Market Animal and Nursery Inventory Report using the required elements and
statements.

October 2022

FCIC-18160-1

144

Exhibit 7

Market Animal and Nursery Inventory Report (Continued)

The following is provided as Livestock example only. Refer to the second FOR in Exhibit 8 for livestock example.

October 2022

FCIC-18160-1

145

Exhibit 8

Farm Operation Report

The following table provides descriptions of the FOR form required elements.
Item
Required Element
1.
Policy Year:

Description
The current policy year. Indicate whether the applicant is a
fiscal year filer and, if they are, include the beginning month
and year of the fiscal year and the ending month and year of
the fiscal year.
Name, address, telephone number, and tax ID, such as social
security number or employer identification number for the
applicant/insured. Also includes the person type the
applicant/insured used to file their Federal income taxes.

Producer Information:

Agency Information:

State/County:

4a.

Did the county where the majority
of revenue is expected to be
earned change within the policy
year? Yes or No.

Other Insurance:

The applicant/insured must be the same person and person
type as the person designated on the United States Federal
Income Tax form(s).
Name, address, telephone number, code number of the agent
and policy number.
State and county where the majority of the total expected
revenue for the policy year will be derived. If the answer to
item 4a is “Yes,” enter the new county.
Check Yes if the county in which the majority of the expected
revenue is expected to be earned within the policy year
changed. Otherwise, check No.
If answer is yes, update county in item 4.
Commodities and corresponding policy numbers by state and
county on which other Federally reinsured insurance is in force
for commodities to be insured under WFRP.

Intended
Item
6.

Required
Element
Commodity
Name

Description
Intended:

Name of each intended commodity that is or will be purchased for
resale or produced for revenue during the insurance period. Refer
to Subparagraph 48(2)(e) and (f).

Revised:

7.
8.
9.

List any additional commodities purchased for resale or produced
for revenue. Refer to Paragraph 49.
Commodity Code Enter the commodity code for the intended commodity listed in the AD.
Rate Code
Enter the rate code for the intended commodity listed in AD.
Method of
Method of how the intended commodity is produced, such as acres, head, or
Establishment
square feet. For intended commodities that are certified organic, use the organic
code associated with the method. Refer to Exhibit 19.

October 2022

FCIC-18160-1

146

Exhibit 8
Item
10.

Farm Operation Report (Continued)

Required
Element
Yield

Description
Expected yields used will be in accordance with the section 18 of the policy and
Exhibit 18 of this handbook.
For animals that will be sold by the head enter 1.0. For animals that are sold by the
pound, enter the expected average weight at which the insured expects to sell the
animal in the insurance period.
The unit of measure must be consistent with how the intended commodity is
marketed, such as bushels, tons, pounds, hundredweight, boxes, cartons, head, etc.
Include the unit of measure immediately after the yield amount. Refer to Exhibit 20
for units of measure.
Make no entry if item 7 is the combined direct marketing or micro farm commodity
code.

11.

Expected
Value

Intended:

Enter the expected yield for the intended commodity per unit of
measure in accordance with Exhibit 18.

Revised:

If additional commodities were added, enter the expected yield per
unit of measure in accordance with Exhibit 18.
The expected value in dollars and cents per unit of measure. The
expected value must be consistent with how the intended commodity is
marketed, such as bushels, tons, pounds, hundredweight, boxes,
cartons, head, etc. Include the unit of measure immediately after the
dollar amount.

Intended:

Revised:

12.

Expected
Revenue
(10×11)

13A. Intended
Quantity

If additional commodities were added, enter the expected value in
dollars and cents in accordance with Exhibit 18.

Refer to Exhibit 20 for units of measure.
Enter the result of multiplying item 10 × item 11. Enter method of establishment
immediately after the dollar amount.
Make no entry if item 7 is the combined direct marketing or micro farm commodity
code.
The amount of the intended commodity the applicant/insured plans to produce or
purchase and obtain revenue from in the insurance period. Enter the method of
establishment immediately following the quantity.
Enter the:
(1)

October 2022

total number of acres, rounded to tenths, for field grown commodities;

FCIC-18160-1

147

Exhibit 8

Farm Operation Report (Continued)

Required
Element
13A. Intended
Quantity
(Continued)
Item

Description
Important:

Include only bearing acres for perennial field grown commodities.

(2)

total number/amount that will be produced and/or purchased for resale;

(3)

total number of animals to be sold by the head; and

(4)

total tons, hundredweight, or pounds, as applicable, for animals or animal
products.

When the same intended commodity is planted and harvested more than once in
the insurance period, enter the total number of acres planted. Refer to
Subparagraph 48(5) for more information.
Example:

13B.

Cost/Basis
and/or Value

Insured A intends to plant and harvest carrots on the same five acres
two separate times during the insurance period. This is a normal
practice for the insured and is considered a GFP for the area. Enter
10 acres of carrots for the year.

Make no entry for commodities added to FOR after SCD.
The cost/basis and/or value of the intended commodity the insured plans to
produce or purchase and obtain revenue from in the insurance period.
Enter only:
(1)

The “Total Value” (item 13 of the Market Animal and Nursery Inventory
Report) for the intended commodity listed.

(2)

The cost/basis of the intended commodity that will be purchased for resale
during the insurance period.

(3)

The sum of (1) and (2), if both (1) and (2), apply to the intended commodity
listed.
Example:

The insured has 500 mums on the Market Animal and
Nursery Inventory Report with a “Total Value” of $400. The
insured intends to purchase 500 mums during the insurance
period for $1.00 each. The insured enters $900 in item 13B
calculated as $400 + (500 × $1.00).

Make no entry for commodities added to FOR after SCD.

October 2022

FCIC-18160-1

148

Exhibit 8
Item
13C.

Farm Operation Report (Continued)

Required
Element
Share

Description

13D. Percent
Produced to
Sell
13E. Total Expected
Revenue
[(12 × 13A) 13B) × 13C] ×
13D.

Enter the insured’s share in the commodity at the time the IFOR is submitted to
four decimal places.
Enter the percent of the commodity produced to sell in decimal form, rounded to
four places (i.e., 50% entered as 0.5000).
(1)

Enter the result of multiplying (item 12 × item 13A, minus item 13B) × item
13C. Multiply the result by item 13D. Round to the nearest whole dollar. If
the result is a negative number, enter zero.

(2)

If item 7 is the combined direct marketing or micro farm commodity code,
enter the result of multiplying (item 11 × item 13A, minus item 13B) × item
13C. Multiply the result by item 13D. Round to the nearest whole dollar. If
the result is a negative number, enter zero.

Revised

Required
Element
14A. Actual
Quantity
Item

Description
Enter the amount of each commodity the insured has already or still intends to produce
or purchase to obtain revenue from during the insurance period.
(1)

If the quantity of commodities the insured has already or still intends to produce
or purchase for revenue during the insurance period are the same as intended,
transfer the entry from item 13A.

(2)

If changes were made on the farm so that during the insurance period the actual
commodities to be produced, purchased, or otherwise added to the farm
operation for revenue during the year are not the same as shown on the
intended report:
(a)

Carry over the quantity of any commodity that was planted or purchased
but lost due to an insured or uninsured cause from item 13A.

(b)

If a commodity was planted or purchased to replace a commodity that
failed enter the actual quantity of the replacement commodity planted or
purchased.
Important:

(c)

Include only bearing acres for perennial field grown
commodities.

Enter the quantity of additional commodities listed in item 6.

Refer to Paragraph 49.

October 2022

FCIC-18160-1

149

Exhibit 8
Item
14B.

14C.

Farm Operation Report (Continued)

Required
Element
Actual
Cost/Basis
and/or Value

14D. Percent
Produced to
Sell
14E. Total Expected
Revenue

Description
Enter the actual cost/basis and/or value of each commodity the insured has already
or still intends to produce or purchase to obtain revenue from during the insurance
period.
(1)

If the cost/basis and/or value of commodities the insured has already or still
intends to produce or purchase for revenue during the insurance period are
the same as intended, transfer the entry from item 13B.

(2)

If the cost/basis of commodities the insured has already or still intends to
produce or purchase for revenue during the insurance period is different than
as intended, enter the actual cost/basis of the commodity.

(3)

If changes were made on the farm so that during the insurance period the
actual commodities to be produced, purchased, or otherwise added to the
farm operation for revenue during the year are not the same as shown on the
intended report:
(a)

Carry over the cost/basis and/or value of any commodities that were
planted or purchased but lost due to an insured or uninsured cause
from item 13B.

(b)

Enter the cost/basis of any additional commodities purchased for
resale listed in item 6.

Refer to Paragraph 49.
Carry over the share from item 13C of any commodity not changed during the
insurance period. If the insured share in a commodity has changed, enter the
insured’s actual share, to four decimal places.
Enter the percent of the commodity produced to sell in decimal form, rounded to
four places (i.e., 50% entered as 0.5000).
(1)

For additional commodities, or those which item 14C is not the same as 13C,
enter the result of multiplying (item 12 × item 14A minus item 14B) × item
14C. Round to the nearest whole dollar. If the result is a negative number,
enter zero.
If item 7 is the combined direct marketing or micro farm commodity code,
enter the result of multiplying (item 11 × item 14A minus item 14B) × item
14C. Multiply the result by item 14D. Round to the nearest whole dollar. If
the result is a negative number, enter zero.

October 2022

FCIC-18160-1

150

Exhibit 8
Item
14E.

Farm Operation Report (Continued)

Required
Element
Total Expected
Revenue
(Continued)

Description
(2)

Carry over the total expected revenue from item 13D of any commodity
not changed during the insurance period.

(3)

If changes were made on the farm so that during the insurance period any
actual commodity to be produced, purchased, or otherwise added to the
farm operation for revenue during the insurance period is not the same as
shown on the intended report:
(a)

Carry over the total expected revenue from item 13D of any
intended commodity that was lost due to an insured or uninsured
cause and not replaced with another commodity;

(b)

Carry over the total expected revenue from item 13D of any
intended commodity that was lost due to an uninsured cause and
replaced with another commodity; or

(c)

If a commodity was planted or purchased to replace an intended
commodity that was lost due to an insured cause; subtract the
total expected revenue of the replacement commodity from the
total expected revenue of the intended commodity as shown in
item 13D.
(i)

Enter the result of (b) if the result is a positive number.

(ii)

Enter zero if the result of (b) is a negative number

Final
Item
Required Element
15A. Final Production
15B.
16.
17.
18.
19.
20.

Description
Enter the total amount of production of each commodity produced
for the insurance period.
Final Revenue
Enter the total amount of revenue actually received for the
production of the commodity entered in item 15A less the cost or
basis, if applicable.
Total Expected Revenue at SCD Enter the sum all amounts in column 13D.
Total Expected Revenue
Enter the sum all amounts in column 14D and column 15B as
applicable.
Total Expected Revenue @
Enter the sum of item 16 and 17 at SCD.
SCD (Total of item 16 and 17
@ SCD)
Whole-Farm Historic Average
Enter the amount from item 19 of the applicant’s/insured’s current
Revenue (item 19 of WFHR)
WFHR.
Total Expected Revenue @
Total expected revenue for the farm operation for the policy year.
Revised Reporting Date (item
Enter the result of item 17.
17)

October 2022

FCIC-18160-1

151

Exhibit 8

Farm Operation Report (Continued)

Item
Required Element
21.
Approved Revenue (Lesser
of item 18 and 19 @ SCD or
item 19 and 20 @ RRD)
21a. Approved Revenue @ SCD
21b. Approved Revenue @
Revised Reporting Date
22.
***
22a. ***
22b. ***
23.
Narrative, Expected Values
and Report of Changes:

24.

Integrated/Post-Production
Operations:

Description
Approved revenue for the farm operation for the policy year.
Enter the lesser of item 18 or item 19 as of the SCD.
Enter the lesser of item 19 or item 20 as of the Revised Reporting Date.
MAKE NO ENTRY. ***
MAKE NO ENTRY. ***
MAKE NO ENTRY. ***
A detailed narrative of all changes to the farm operation from the prior
year. List any adjustments made to each commodity to remove
revenue that is not allowable (section 18 of WFRP policy) and any
additional information needed to explain or clarify the information
provided on the FOR (i.e., two separate plantings of the same
commodity on the same acreage during the insurance period).
Document the insured’s license number or authorization verification to
produce industrial hemp.
Check “YES” or “NO” as applicable. Refer to Paragraphs 142 and 147
for further instructions.

The following required entries are not illustrated on the FOR example below.
Item
Required Element
Description
25.
Applicant/Insured Signature @
Applicant/insured signature @ SCD and date. Insured must sign
SCD and Date
and date FOR each time it is updated.
26.
Agent’s Signature @ SCD and
Agent’s signature @ SCD and date. Agent must sign, and date
Date
FOR each time it is updated.
27.
Insured Signature @ Revised
Insured signature @ Revised Reporting Date and date. Insured
Reporting Date and Date
must sign and date FOR each time it is updated.
28.
Agent’s Signature @ Revised
Agent’s signature @ Revised Reporting Date and date. Agent
Reporting Date and Date
must sign, and date FOR each time it is updated.
29.
Insured Signature @ Final
Insured signature @ Final Reporting and Date and date.
Reporting and Date
30.
Agent’s Signature @ Final
Agent’s signature @ Final Reporting and Date and date.
Reporting and Date
Refer to Exhibit 3 for required certification and other statement.

October 2022

FCIC-18160-1

152

Exhibit 8

Farm Operation Report (Continued)

The following is provided as an example only. AIPs must develop a Farm Operations Report using the required elements and statements.

October 2022

FCIC-18160-1

153

Exhibit 8

Farm Operation Report (Continued)

The following is provided as an example to include the combined direct marketing commodity code.

October 2022

FCIC-18160-1

154

Exhibit 8

Farm Operation Report (Continued)

The following is provided as Livestock example only.

October 2022

FCIC-18160-1

155

Exhibit 9

Expected Value and Yield Source Document Certification Worksheet

The following table provides descriptions of the Expected Value and Yield Source Document Certification
Worksheet required elements.
Expected Value and Yield Source Document Certification Worksheet
Part 1: Producer Information
Required
Item
Standard
Element
1.
Name:
The name of the insured as it appears on the application.
2.
Policy Number:
The insured’s assigned policy number.
The current policy year. Includes beginning and ending month of fiscal year if
3.
Policy Year:
insured is an early or late fiscal year filer.
4.
Agency
The name, address, telephone number, and code number of the agent that
Information:
provides insurance service to the insured.
Part 2: Commodity Information
Required
Standard
Item
Element
Enter the name of the insured commodity and commodity code.
5.
Commodity
Enter the commodity code for the intended commodity listed in the AD.
6.
Commodity
Code
Enter the rate code for the intended commodity listed in AD.
7.
Rate Code
Enter the practice, if applicable.
8.
Practice
Enter the type of the commodity, if applicable.
9.
Type
Enter the variety of the commodity, if applicable.
10.
Variety
Enter the unit of measure consistent with how the commodity is marketed.
11.
Unit of
Measure
12.
Expected
Enter the expected yield per method of establishment the producer can expect during
Yield
the insurance period. Refer to Exhibit 18. Make no entry if item 6 is the combined
direct marketing commodity code.
Identify the source used to determine the expected yield. Insureds must provide
13.
Source
verifiable documentation in accordance with section 18 of the policy for the expected
yield certified on this worksheet by SCD or the date the RFOR is submitted or revised
if the commodity was not on the IFOR.
Enter the expected value per method of establishment the producer can expect to
14.
Expected
receive during the insurance period. The expected values must be determined using
Value
Section 18 of the WFRP policy and Exhibit 18 of this handbook.
Identify the source used to determine the expected value. The source must be
15.
Source
consistent with those in Section 18 of the WFRP policy. Insureds must provide
verifiable documentation in accordance with section 18 of the policy for the expected
value certified on this worksheet by the SCD or the date the RFOR is submitted or
revised if the commodity was not on the IFOR.

October 2022

FCIC-18160-1

156

Exhibit 9

Expected Value and Yield Source Document Certification Worksheet (Continued)

The following will only be completed when the insured has listed the Combined Direct Marketing or Micro
Farm Commodity Code on the FOR.
Part 3: Combined Direct Marketing Commodity or Micro Farm Information
Required
Item
Standard
Element
16.
Name of Market Enter the name of the market that sells the direct market commodities. For
Micro Farm, MAKE NO ENTRY.
17.
Years Produced
Enter the last three years preceding the policy year, including the lag year.
18.
Total Number of Enter the total number of planted acres, for each year listed in item 17, of all
Planted Acres
commodities reported as Combined Direct Marketing or Micro Farm.
19.
Revenue
Enter the allowable revenue from the complete marketing record of all
commodities on the farm operation reported as Combined Direct Marketing or
Micro Farm for each year listed in item 17.
20.
Average
Enter the three-year average number of acres and allowable revenue in the
respective column.
21.
Expected Value
Enter the result of dividing the three-year average allowable revenue by the
per Acre
three-year average number of acres in item 20.
22.
Remarks
Enter any pertinent information relating the information provided on this
worksheet.
The following required entries are not illustrated on the Expected Value and Yield Source Document
Certification Worksheet example below.
Item
Required Element
Standard
Applicant/Insured
Signature
and Date.
23.
Applicant/Insured Signature and Date
AIP Representative Signature and Date.
24.
AIP Representative Signature and Date
Refer to Exhibit 3 for required certification and other statements.

October 2022

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157

Exhibit 9

Expected Value and Yield Source Document Certification Worksheet (Continued)

The following is provided as an example only. AIPs must develop an Expected Value and Yield Source Document Certification Worksheet using the
required elements and statements.

October 2022

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158

Exhibit 10

Yield and Revenue Report

The Yield and Revenue Report is used to report yield and revenue history for commodities not insured under
an individual yield or ARH coverage policy.
Part 1: Producer Information
Required
Item
Standard
Element
1. Name:
The name of the insured as it appears on the application.
2. Policy Number:
The insured’s assigned policy number.
The current policy year. Includes beginning and ending month of fiscal year if
3. Policy Year:
insured is an early or late fiscal year filer.
4. Agency
The name, address, telephone number, and code number of the agent that
Information:
provides insurance service to the insured.
Part 2:
Item
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

15.
16.
17.
18.
19.
20.

Commodity Information
Required Element
Standard
Enter
the
name
of
the
insured
commodity
and commodity code.
Commodity:
Enter the commodity code for the intended commodity listed in the AD.
Commodity Code:
Enter the rate code for the intended commodity listed in AD.
Rate Code:
Enter the practice, if applicable.
Practice:
Enter the type/variety of the commodity, if applicable.
Type/Variety:
Enter the unit of measure consistent with how the commodity is marketed.
Unit of Measure:
Year Produced
Enter the four consecutive years preceding the policy year.
Total Production
Enter the total production for the commodity corresponding to the year in
item 11. The amount should be in the unit of measure listed in item 10. If a
replacement yield is used, MAKE NO ENTRY.
Acres
Enter the number of acres planted to the commodity for the year
corresponding to item 11. If a replacement yield is used, MAKE NO ENTRY.
Average Yield
(1)
For insured’s that have production history, enter the result of dividing
item 12 by item 13.
(2)
For insured’s that have no production history, enter a replacement
yield.
Net Revenue
For commodities that are listed on the FOR that are direct marketed, enter the
total amount of revenue received for the commodity less any required
adjustments.
Average Revenue
For commodities that are listed on the FOR that are direct marketed, enter the
result of dividing item 15 by item 13, round to the nearest cent.
Insured’s Share:
For commodities that are listed on the FOR that are direct marketed, enter the
insured’s share of the insured commodity.
100% Share
For commodities that are listed on the FOR that are direct marketed, enter the
Equivalent Revenue result of item 16 divided by item 17.
Replacement Yield: Enter a replacement yield for the commodity. Refer to Exhibit 18.
Expected Yield:
Enter the result of adding all column 14 entries and dividing by four.

October 2022

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159

Exhibit 10
Item
21.
22.

Yield and Revenue Report

Required
Element
Expected
Value:
Record
Type:

Standard
Enter the result of adding the three most recent revenues in column 16 and dividing by
three. This amount may only be used as an expected value for the commodity if the
insured’s three-year average is determined to be the expected value.
Select the type of record the insured can submit if requested:











23.

Remarks:

Farm Stored – measured by the insured/AIP
Pick/Daily Sales Record
Yield Monitoring System
Appraisal (non-loss)
Field Harvest Record
Claim for Indemnity
Livestock Feeding Records
Third-party Record
Direct Market
Other

Insured must provide copies of the record, if requested by the AIP.
Enter any pertinent information relating the information provided on this report.

The following required entries are not illustrated on the Expected Value and Yield Source Document
Certification Worksheet example below.
Item
Required Element
Standard
Applicant/Insured
Signature
and Date.
24.
Applicant/Insured Signature and Date
Agent’s Signature and Date.
25.
Agent’s Signature and Date
Refer to Exhibit 3 for required certification and other statements.

October 2022

FCIC-18160-1

160

Exhibit 10

Yield and Revenue Report (Continued)

The following is provided as an example only. AIPs must develop a Yield and Revenue Report using the required elements and statements.

October 2022

FCIC-18160-1

161

Exhibit 11

Replant Payment Worksheet

The following table provides descriptions of the Replant Payment Worksheet (if applicable) required elements.
Item Required Element
Description
1.
Policy Year:
The current policy year. Includes beginning and ending month of fiscal year if
applicant/insured filed Federal tax on fiscal year basis.
2.
State/County:
State and county where the majority of the total expected revenue for the policy
year will be derived.
3.
Policy Number:
Policy number for which payment is being calculated.
4.
Claim Number:
Claim Number assigned by AIP.
5.
Insured
Name, address, telephone number, and tax ID, such as social security number or
Information:
employer identification number for the insured. Also includes the person type
the insured used to file their Federal taxes.

6.
7.

Agency
Information:
Companion
Policy(s):

Date of Damage:

Cause of Damage:

10.

Primary Cause
(%):
Dates of Notice:
Commodity
Name/Code

11.
12.

13.
14.
15.

The insured must be the same person and person type as the person designated
on the United States Income Tax form(s).
Name, address, telephone number and code number of the agent. Include
policy number.
List of producers, other than the insured, that have WFRP coverage on any of
the commodities covered under the insured’s policy.
Enter “NONE” when the insured has 100 percent share in all commodities
insured under their WFRP policy, or when all other producers with an interest in
the commodities do not have a WFRP policy.
Month and year in which most of the damage causing a loss in revenue
occurred. Enter the specific date of damage when known, such as damage from
hail, fire or flood.
Event(s) that caused the damage resulting in loss of revenue. Cause must be an
insurable cause of loss. List all insurable causes that created damage. Describe
cause of loss in narrative, item 20, if additional space is required.
Percentage of the primary cause of the damage, when more than one insurable
cause created the damage. Must be whole percent and exceed 50 percent.
Date(s) insured provided notice of loss.
Name and commodity code number of the commodity replanted

For commodities with varying shares of replant costs, make separate line
entries.
Determined Acres Number of acres of the commodity the AIP determines were actually replanted,
Replanted
and that the AIP agreed were practical to replant and gave consent to replant.
Actual Replant
The actual per acre cost to replant the commodity the AIP determines from
Cost
records provided by the insured.
Maximum Replant The maximum dollar amount per acre (20% of the expected revenue of the
Payment
commodity (column 10 of the FOR) × coverage level).

October 2022

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162

Exhibit 11

Replant Payment Worksheet (Continued)

Item Required Element
14.
Actual Replant Cost
15.

18.

Maximum Replant
Payment
Replant payment
per Acre (Lesser of
Column 14 or 15)
Replant Cost
Allowed (Column 13
× Column 16)
Share

19.
20.
21.

Replant Payment
Total
Narrative:

16.
17.

Description
The actual per acre cost to replant the commodity the AIP determines from
records provided by the insured.
The maximum dollar amount per acre (20% of the expected revenue of the
commodity (column 10 of the FOR) × coverage level).
Enter the lesser of the actual replant cost (column 14) or the maximum
replant payment (column 15).
Enter the result of the determined acres replanted (column 13) multiplied by
the replant payment per acre (column 16).
Enter the insured’s share, from item 14C on the RFOR, of the replanting
payment for the acres of the commodity replanted.
Enter the result of column 17 multiplied by column 18.
Total is the sum of all monetary entries in column 19.
Document:
(1)
(2)
(3)

22.
23.

Similar Damage on
Other Farms in the
Area?
Assignment of
Indemnity?

reason no replant payment due, if applicable;
calculation of item 15 (maximum replant payment); and
any additional information required to explain entries for all items of
form.

If more space is needed, include applicable information on a separate
document. Include the insured’s name, policy number, and claim number on
the separate document. Title the document “Narrative to Replant Payment
Continued” and attach it to the Replant Payment Worksheet.
Indication of whether other farms in the area had similar damage as the
insured reported. Enter “Yes” if other farms in the area had similar damage,
otherwise enter “No.”
Indication of whether insured has an assignment of indemnity in effect for
policy year. Enter “Yes” if insured has assignment of indemnity in effect for
policy year, otherwise enter “No.”

The following required entries are not illustrated on the Replant Payment Worksheet example below.
Item
Required Element
Description
24.
Insured’s Signature and Date
Insured signature and date.
25.
AIP Representative Signature and Date
AIP representative’s signature and date.
Refer to Exhibit 3 for required certification and other statements.

October 2022

FCIC-18160-1

163

Exhibit 11

Replant Payment Worksheet (Continued)

The following is provided as an example only. AIPs must develop a Replant Payment Worksheet using the required elements and statements.

October 2022

FCIC-18160-1

164

Exhibit 12

Schedule F Example

Example of Completed Schedule F Form:

October 2022

FCIC-18160-1

165

Exhibit 12

October 2022

Schedule F Example (Continued)

FCIC-18160-1

166

Exhibit 13

Substitute Schedule F Example

(1)

The Substitute Schedule F is a required worksheet used by entities in the business of farming that do
not complete and file a Schedule F. This form is used to document income and expenses for the
purpose of WFRP in the same manner as those who file a Schedule F.

(2)

The Substitute Schedule F will be completed by the insured using the instructions provided by the IRS
for the Schedule F.

(3)

The following table provides descriptions of the Substitute Schedule F required elements not provided
for by the IRS instruction.

The following required entries are not illustrated on the Substitute Schedule F example below.
Required Element
Description
Insured’s Signature and Date
Insured signature and date.
AIP Representative Signature and Date
AIP representative’s signature and date.

October 2022

FCIC-18160-1

167

Exhibit 13

Substitute Schedule F Example

The following is provided as an example only:

October 2022

FCIC-18160-1

168

Exhibit 14
A.

Allowable Revenue Worksheet

Use of Allowable Revenue Worksheet
The Allowable Revenue Worksheet is a required worksheet that AIPs must use in determining an
applicant’s/insured’s allowable revenue for each year in the whole-farm history period, and for the
policy year when determining an indemnity amount. The worksheet assists in identifying and
documenting required adjustments to the applicant’s/insured’s tax reported income.

Information Directly from Schedule F
Completion of the Allowable Revenue Worksheet requires information taken directly from the
applicant’s/insured’s Schedule F tax form. The items to be listed in the required element titled
“Schedule F Part I or III Revenue” on the Allowable Revenue Worksheet are taken directly from the list
of farm revenue listed in Part I (cash) or Part III (accrual) of the Schedule F tax form. The farm revenue
items listed on the Schedule F has changed over time and may change in future years. Therefore, the
items to be listed in the required element titled “Schedule F Part I or III Revenue” may vary from year
to year.

Required Elements Description
The following table provides descriptions of the required elements for the Allowable Revenue
Worksheet.
Note:

The descriptions provided in the table are based on the 2020 Schedule F form.

Item Required Elements
1.
Producer
Information:
2.

Policy Number:

State/County:

Tax Year:

Adjustment Code:

Description
Name, address, and telephone number for the applicant/insured. Also
includes the person type the insured used to file their Federal taxes.
The applicant/insured must be the same person and person type as
the person designated on the United States Income Tax form(s).
Policy number. Enter “N/A” if no policy number has been assigned to
applicant.
State and county where the majority of the total expected revenue for
the policy year will be derived.
Tax year of the corresponding Schedule F from which the information
is being taken.
Codes to identify specific types of adjustments made to revenue
amounts listed on applicant’s/insured’s Schedule F. Enter:
(1)
(2)
(3)
(4)
(5)
(6)
Note:

October 2022

“A = Schedule F income specifically excluded”;
“B = Cost of post-production operations”;
“C = Co-op distributions not directly related”;
“G = Net gain from commodity hedges”;
“H = Not directly related to production”; and
“I = Other.”
“I” includes, but is not limited to, adjustments made due
to a different tax filing method than any year within the
whole-farm history period.
FCIC-18160-1

169

Exhibit 14
C.

Allowable Revenue Worksheet (Continued)

Required Elements Description
Item Required Elements
6.
Schedule F Part I
(cash) or III (accrual)
Revenue
7.
Schedule F Line
Number
8.
Amount on Schedule
F

Description
List of farm revenue items taken from Part I or Part III of the
applicant’s/insured’s Schedule F.
Line number on the Schedule F for the required entry.
Dollar amount entered on Schedule F for each farm revenue item
listed in item 6.
For farm revenue item “Sales of animals and other resale items, less
the cost, or other basis, of such items,” enter the dollar amount the
applicant/insured entered in item 1c or 37 on their Schedule F.
Note for Accrual Filers Only: Item 37 of the Schedule F represents the
total amount of revenue received from the sale of animals or other
commodities purchased for resale and produced during the insurance
period. Revenue from animals or other commodities that were
purchased for resale and sold during the insurance period must be
determined and, that amount, entered in the line titled “Sales of
animals and other resale items, less the cost, or other basis, of such
items.”
For farm revenue item “Sale of livestock, produce, grains, and other
products you raised,” enter the dollar amount the applicant/insured
entered in item 2 or 37 on their Schedule F.
Note for Accrual Filers Only: Item 37 of the Schedule F represents the
total amount of revenue received from the sale of animals or other
commodities purchased of resale and produced during the insurance
period. Revenue from animals or other commodities that were
produced during the insurance period must be determined and, that
amount, entered in the line titled “Sale of livestock, produce, grains,
and other products you raised.”
For farm revenue item “cooperative distributions,” enter the taxable
amount the applicant/insured entered in item 3b or 38b on their
Schedule F. (Include only those amounts directly related to the sale of
commodities.)
For farm revenue item “agricultural program payments,” enter the
taxable amount the applicant/insured entered in item 4b or 39b on
their Schedule F.

October 2022

FCIC-18160-1

170

Exhibit 14
C.

Allowable Revenue Worksheet (Continued)

Required Elements Description
Item Required Elements
Description
8.
Amount on Schedule For farm revenue item “Commodity Credit Corporation (CCC) loans
F (Continued)
reported under election,” enter the dollar amount the
applicant/insured entered in item 5a or 40a of their Schedule F.
For farm revenue item “CCC loans forfeited,” enter the taxable
amount the applicant/insured entered in item 5c or 40c on their
Schedule F.
For farm revenue item “crop insurance proceeds and crop disaster
payments,” enter the total of the amounts the applicant/insured
entered in items 6b and 6d or 41 on their Schedule F.
For farm revenue item “Custom hire (machine work) income,” enter
the dollar amount the applicant/insured entered in item 7 or 42 of
their Schedule F.
For farm revenue item “Other income, including federal and state
gasoline or fuel tax credit or refund,” enter the dollar amount
separately for each of the following farm revenue entered in item 8 or
43 of their Schedule F.
(1)
(2)
(3)
(4)

Revenue
Adjustment Amount
and Code

Federal and state gasoline or fuel tax credit or refund.
Income from bartering.
Payments from buyers of commodities for bypassed acreage.
Payments from marketing orders.

Enter “0” if no dollar amount was entered for the farm revenue item
on the Schedule F.
Dollar amount to be subtracted from the dollar amount in item 8, and
the applicable adjustment code from item 5.
Note:

The following entries are applicable to both CASH and
ACCURAL METHODS of filing unless otherwise stated.

The following farm revenue reported on the Schedule F must be
excluded from allowable revenue for WFRP non-claim purposes.
Therefore, enter the exact dollar amount the applicant/insured
entered on their Schedule F for the following farm revenue items.
Immediately after the dollar amount, enter adjustment code “(A).”
(1)
(2)
October 2022

Agricultural Program Payments.
Crop insurance proceeds and crop disaster payments.
FCIC-18160-1

171

Exhibit 14
C.

Allowable Revenue Worksheet (Continued)

Required Elements Description
Item Required Elements
9.
Revenue
Adjustment Amount
and Code
(Continued)

(3)
(4)
(5)

Description
Custom hire (machine work) income.
CCC loans repaid (except those repaid by a third-party buyer).
Commodity Credit Corporation (CCC) loans reported under
election.

FOR CASH FILERS: For farm revenue item “sales of animals and other
resale items, less the cost, or other basis, of such items,” enter “0”.
***
FOR ACCRUAL FILERS: For farm revenue item “sales of animals and
other resale items, less the cost, or other basis, of such items” enter
the exact dollar amount the applicant/insured entered in item 46 of
their Schedule F, immediately followed by adjustment code “(A)”;
For farm revenue item “cooperative distributions,” enter the amount
of such distributions that are not directly related to the production of
commodities insured under the WFRP policy immediately followed by
adjustment code “(C).”
For farm revenue item “other income, including federal and state
gasoline or fuel tax credit or refund,” enter the amount equal to the
revenue received from federal and state gasoline or fuel tax credits or
refunds, immediately followed by an adjustment code “(A).” Also
enter any amount that meets any of the conditions listed below for
any other revenue identified in this farm revenue item.
For each farm revenue item not listed above, enter the amount equal
to:

October 2022

(1)

the post-production costs, including any prepaid amounts
reimbursed from a previous tax year, immediately followed by
adjustment code “(B)”;

(2)

all revenue earned from commodities not insurable under
WFRP, immediately followed by adjustment code “(I)”;

(3)

all revenue not directly related to production of commodities,
immediately followed by adjustment code “(H)”;

(4)

the net gain from commodity hedges, immediately followed by
adjustment code “(G)”; and

FCIC-18160-1

172

Exhibit 14
C.

Allowable Revenue Worksheet (Continued)

Required Elements Description
Item Required Elements
Description
9.
Revenue Adjustment (5) all other revenue not allowed to be included in allowable revenue
Amount and Code
for WFRP purposes according to the WFRP policy, such as revenue
(Continued)
from a contract grower, immediately followed by adjustment
code “(I).”
Enter “0” if the amount entered in item 8 does not include any
revenue that must be excluded.
Exception:

10.

Allowable Revenue
Per Item

11.

Total Schedule F
Part I or III Revenue

12.

Allowable Revenue
for Tax Year

For Micro Farm, revenue generated from postproduction operations and value-added may be included
in allowable revenue.

Verifiable records must be provided to determine the amount of postproduction costs, indirect revenue, revenue from commodities not
insurable under WFRP, and other revenue enter in item 9.
Amount of allowable revenue for each farm revenue item listed in
item 6. Determine the amount of allowable revenue for each farm
revenue item listed in item 6 by subtracting the amount(s) entered in
item 9 from the amount entered in item 8.
Enter the total for:
(1)
(2)

farm revenue on Schedule F, by summing all amounts in item 8;
revenue adjustment amount, by summing all amounts in item 9;
and
(3) allowable revenue per item, by summing all amounts in item 10.
WFRP allowable revenue for the tax year in item 4.
Enter the total for the allowable revenue per item from item 10.

The following required entries are not illustrated on the Allowable Revenue Worksheet example
below.
Item Required Elements
Description
13.
Applicant/Insured
Applicant/Insured signature and date.
Signature and Date
14.
AIP Representative
Signature of AIP representative that completed the worksheet, and
Signature and Date
date completed.
Refer to Exhibit 3 for required certification and other statements.

October 2022

FCIC-18160-1

173

Exhibit 14

Allowable Revenue Worksheet (Continued)

The farm revenue listed on the Schedule F has changed over time and may change in future years. Therefore,
the items to be listed in the required element titled “Schedule F Part I Income” may vary from year to year.
The following example Allowable Revenue Worksheet provides the farm revenue items listed on the 2020
Schedule F.

October 2022

FCIC-18160-1

174

Exhibit 15

Claim for Indemnity Form

The following table provides descriptions of the Claim for Indemnity Report required elements.
Item
1.

Required Elements
Policy Year:

State/County:

3.
4.
5.

Policy Number:
Claim Number:
Insured Information:

Agency Information:

Companion Policy(s):

Date of Damage:

Cause of Damage:

10.

Primary Cause (%):

11.
12.
13.
14.
15.
16.
17.

Dates of Notice:
***
***
***
***
***
Approved Revenue

18.
19.
20.

***
Coverage Level
Insured Revenue

21.

Other Indemnities

October 2022

Description
The current policy year. Includes beginning and ending month of fiscal year
if applicant/insured filed Federal tax on fiscal year basis.
State and county where the majority of the total expected revenue for the
policy year will be derived.
Policy number for which indemnity is being calculated.
Claim Number assigned by the AIP.
Name, address, telephone number, and tax ID, such as social security
number or employer identification number for the insured. Also includes
the person type the insured used to file their Federal taxes.
The insured must be the same person and person type as the person
designated on the United States Income Tax form(s).
Name, address, telephone number and code number of the agent. Include
policy number.
List of producers, other than the insured, that have WFRP coverage on any
of the commodities covered under the insured’s policy.
Enter “NONE” when the insured has 100 percent share in all commodities
insured under their WFRP policy, or when all other producers with an
interest in the commodities do not have a WFRP policy.
Month and year in which most of the damage causing a loss in revenue
occurred. Enter the specific date of damage when known, such as damage
from hail, fire or flood.
Event(s) that caused the damage resulting in loss of revenue. Cause must
be an insurable cause of loss. List all insurable causes that created damage.
Describe cause of loss in narrative, item 28, if additional space is required.
Percentage of the primary cause of the damage, when more than one
insurable cause created the damage. Must be whole percent and exceed
50 percent.
Date(s) insured provided notice of loss.
MAKE NO ENTRY. ***
MAKE NO ENTRY. ***
MAKE NO ENTRY. ***
MAKE NO ENTRY. ***
MAKE NO ENTRY. ***
Approved revenue for the policy year. Enter amount from item 21b on the
FOR.
MAKE NO ENTRY. ***
Coverage level elected by insured.
The amount of revenue insured under WFRP. Enter result of multiplying
item 17 by item 19. Round to nearest whole dollar.
The total of all indemnities received from insurance policies not authorized
by the Act.
FCIC-18160-1

175

Exhibit 15

Claim for Indemnity Form (Continued)

Item
22.

Required Elements
Deductible

23.
24.

***
RTC Adjustment

25.

Allowable Revenue
for Policy Year

26.

Inventory Adjustment

27.

Accounts Receivable
Adjustment

28.

Market Animal and
Nursery Adjustment

29.

All Other Adjustments

October 2022

Description
The amount of revenue not insured by the WFRP policy. Enter the result of
Item 17 – (item 17 × coverage level). ***
MAKE NO ENTRY. ***
The amount of NAP payments and indemnities from insurance policies not
authorized by the Act in excess of the deductible to be included as RTC. If
item 22 is equal to or greater than item 21, enter “0.” If item 22 if less than
item 21, enter the result of subtracting item 22 from item 21.
Allowable revenue for the policy year. Enter the amount from item 12 on
Allowable Revenue Worksheet for the policy year. Refer to paragraphs 44
and 45.
Total dollar amount of adjustments made for policy year for inventoried
commodities from Inventory Report. Enter the amount from item 19 on
the Inventory Report. This amount may be positive or negative.
Total dollar amount of adjustments made for policy year for accounts
receivable on Accounts Receivable Report. Enter the amount from item 10
on the Accounts Receivable Report. This amount may be positive or
negative.
Total dollar amount of adjustments made for the policy year for animals
and nursery commodities on the Market Animal and Nursery Inventory
Report. Enter the amount from item 22 on the Market Animal and Nursery
Inventory Report. This amount may be positive or negative.
Total dollar amount of adjustments made for policy year for all adjustments
(do not include adjustments from items 26-28). Adjustment include but are
not limited to:
(1)

value assigned for uninsured cause of loss;

(2)

value assigned for abandoned acreage/commodities;

(3)

indemnities from other crop insurance policies;

(4)

net gains from commodity hedging; and

(5)

the amount in item 24 (NAP payments and indemnities from other
insurance policies not authorized under the Act that exceed the
deductible).

(6)

any expense amounts which reduced the price the insured received
for a commodity that were not considered when determining the
expected value of that commodity unless the AIP determines that
the reduction was due to an insurable COL occurring prior to the
harvest or EOIP on the commodity.

FCIC-18160-1

176

Exhibit 15
29.

30.

Claim for Indemnity Form (Continued)

All Other Adjustments
(Continued)

31.

Revenue-to-Count
(25+26+27+28+29)
Revenue Loss

32.

Narrative:

33.
34.
35.

Date Policy Year IRS
Federal Taxes Filed:
Similar Damage on
Other Farms in the
Area?
Assignment of
Indemnity?

October 2022

Exceptions:
Do not include:
(1)

ARC/PLC payments;

(2)

Replant payments; or

(3)

indemnities paid by another policy for damage or loss to a
commodity that is not covered by WFRP such as timber, animals for
show, pasture or rangeland insured under the Rainfall Index or
Vegetation Index policies, or commodities or portions of
commodities produced for feed for use on the insured’s operation.

All other adjustments must be documented in the Narrative or on a Special
Report and attached to the Claim for Indemnity Form.
RTC for determining indemnity. Sum the result of item 25 + item 26 + item
27 + item 28 + item 29. Enter “0” if sum of all items is negative.
Dollar amount of revenue loss for the policy year. Enter the result item 20
minus item 30.
Document:
(1)

reason no indemnity due, if applicable;

(2)

all adjustments made to insured’s revenue on tax form(s) used to
determine item 25;

(3)

individual values used to determine item 29; and

(4)

document any other pertinent information used in calculation of
indemnity.

If more space is needed, include applicable information on a Special Report.
Include the insured’s name, policy number, and claim number on the
separate document. Title the document “Narrative to Claim for Indemnity
Continued” and attach it to the Claim for Indemnity Report.
Month, day, and year the insured’s farm tax forms were sent to the IRS for
the policy year.
Indication of whether other farms in the area had similar damage as the
insured reported. Enter “Yes” if other farms in the area had similar
damage, otherwise enter “No.”
Indication of whether insured has an assignment of indemnity in effect for
policy year. Enter “Yes” if insured has assignment of indemnity in effect for
policy year, otherwise enter “No.”

FCIC-18160-1

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Exhibit 15

Claim for Indemnity Form (Continued)

The following required entries are not illustrated on the Claim for Indemnity Report example below.
Item
37.
38.

Required Elements
Applicant/Insured’s
Signature and Date
AIP Representative
Signature and Date

October 2022

Insured signature and date.

Description

AIP representative’s signature and date.

FCIC-18160-1

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Exhibit 15

Claim for Indemnity Form (Continued)

The following is provided as an example only. AIPs must develop a Claim for Indemnity Form using the required elements and statements.

October 2022

FCIC-18160-1

179

Exhibit 16

Direct Marketing Sales Records

The following forms are examples only for commodities not considered combined direct marketing.

October 2022

FCIC-18160-1

180

Exhibit 16

Direct Marketing Sales Records

The following forms are examples only for commodities not considered combined direct marketing.

October 2022

FCIC-18160-1

181

Exhibit 17
A.

Inventory Valuation Guidelines

Unit of Measure
Commodities listed in inventory must be listed in the unit of measure, such as bushels, pounds, tons,
boxes, etc., in which the commodity will be marketed. Refer to Exhibit 20 for units of measure,
abbreviations, and the numeric code for RMA processing.

Local Market Value
Values listed for inventoried commodities, regardless of which inventory report applies, should be local
market values from sources in the expected values section of the policy and Exhibit 18. AIPs must
ensure that values are realistic and consistent with actual local market values supported by verifiable
or direct marketing sales records.
The local market value must not include any amounts for post-production operations. Refer to Exhibit
2 for the definition of post-production operations.

Animals, Animal Products and Nursery Commodities Held to Realize Gain
Inventories for animals, animal products and nursery and greenhouse will be recorded on the Market
Animal and Nursery Inventory Report.
(1)

(2)

Beginning inventories will be valued using the expected value guidelines on:
(a)

January 1 of the policy year for insured’s who file taxes on a calendar year basis; and

(b)

the first day of the month in which the fiscal year begins for insured’s who file taxes on a
fiscal year basis.

Ending inventories will be valued at the using the expected value guidelines on:
(a)

December 31 of the policy year for insured’s who file taxes on a calendar year basis; and

(b)

the last day of the month in which the fiscal year ends for insured’s who file taxes on a
fiscal year basis.

Commodities Purchased for Resale
The value of inventoried commodities purchased for resale during the insurance period must not
include the cost, or other basis, of the commodity purchased.

Commodities Other Than Commodities Held to Realize Gain, Purchased for Resale, Animals, Animal
Products, Nursery, and Greenhouse
(1)

Beginning and ending inventories will be valued at the end of the insurance period, unless there
is a claim, on the Inventory Report at the:
(a)

October 2022

actual price received if the commodity is sold prior to the end of the insurance period;
or

FCIC-18160-1

182

Exhibit 17
E.

Inventory Valuation Guidelines (Continued)

Commodities Other Than Commodities Held to Realize Gain, Purchased for Resale, Animals, Animal
Products, Nursery, and Greenhouse (Continued)
(b)

(2)

local market value on:
(i)

December 31 of the policy year for insured’s who file taxes on a calendar year
basis; or

(ii)

the last day of the month in which the fiscal year ends for insured’s who file
taxes on a fiscal year basis.

For claims purposes, beginning and ending inventories will be valued (in order of precedence)
at the:
(a)

actual price received if the commodity is sold prior to the time the claim is finalized;

(b)

local market value on the first day of the month in which the claim is finalized by the AIP
based on the same applicable expected value source used to determine the expected
value if available; or

(c)

the source the AIP agrees is the most accurate in Exhibit 18. This only applies when the
original source is not available or when it is not regularly updated to provide timely
estimates of commodity value (i.e., FCIC prices).

Example:

October 2022

If a local source was approved as the basis for the expected value, the AIP should
make every effort to value the ending inventory at claim time under the same
basis.

FCIC-18160-1

183

Exhibit 18

Expected Value and Yield Guidelines

This exhibit provides instructions and guidelines for determining the expected value and expected yield of
commodities the applicant/insured intends to produce or purchase for resale in the insurance period, as
provided on the FOR. Refer to Exhibit 2 for the definition of expected value.
A.

Determinations
(1)

Expected values and expected yields used must be in accordance with the section 18 of the
policy and this exhibit and will be calculated as of:
(a)

The date the IFOR is submitted for commodities on the IFOR;

(b)

The date the RFOR is submitted for commodities that are different than those submitted
on the IFOR (expected values will be carried forward from the IFOR for commodities on
the IFOR);

(c)

The date of planting for commodities that were planted and reported after the RFOR
date and for which a late revision is allowed by the AIP; or

(d)

The date the marketing contract becomes effective for commodities produced under a
marketing contract for the portion of expected production under contract (subject to
the limitation in section 17(c)(3) of the policy.

(2)

Expected values for combined direct marketing commodities must be determined in
accordance with section 51 of the policy and Paragraph 150 of this handbook.

(3)

For Micro Farm, expected values must be determined in accordance with the Micro Farm
Provisions and Paragraph 161 of this handbook.

(4)

The insured cannot increase the expected value of a commodity on the FOR after they have
submitted their IFOR (unless a marketing contract is applicable).

(5)

Expected value and yields must be documented on the Expected Value and Yield Source
Document Certification Worksheet.

Expected Value
(1)

Expected Value by Commodity
Each commodity the applicant/insured intends to produce or purchase for resale in the
insurance period must be listed on a separate line on the FOR. An expected value per unit of
measure, such as bushels, pounds, tons, boxes, etc., must be determined for each commodity
listed. Refer to Exhibit 20 for units of measure, abbreviations, and the numeric code for RMA
processing.
If the same commodity has different rate codes or significantly different expected values, it
must be listed on multiple lines of the FOR with a line for each expected value to accurately
determine the expected revenue. The same commodity may have different expected values
due to some of the following (but not limited to these):

October 2022

FCIC-18160-1

184

Exhibit 18
B.

Expected Value and Yield Guidelines (Continued)

Expected Value (Continued)
(a)

different practice, type or variety of the same commodity;

(b)

different markets used, such as fresh, processed, retail, direct marketed, or wholesale;

(c)

some production may be contracted for a specified price with remaining production that
will be sold on the open market;

(d)

multiple planting/harvest of the commodity at different times of the year;

(e)

some production may be from organically grown commodity and the remaining
production may be conventionally grown; and

(f)

free tonnage raisins versus reserve tonnage raisins.

Note:

(2)

Adjustments in Expected Value
(a)

October 2022

The commodity count that is used for: (1) coverage level qualification, (2) the
diversification discount for the farm premium rate, (3) qualification of farms
growing potatoes for eligibility of WFRP, and (4) for the determination of what
type of unit and therefore subsidy percentage applies, will be determined based
on the summed commodity information.

The following items must be subtracted from the expected value:
(i)

cost of post-production operations, including those that add value; or

(ii)

cost, or other basis, of commodities purchased for resale.

(b)

If adjustments to the expected value for a commodity or line on the FOR or inventory
reports result in a negative value, the expected value for that commodity or line entry
must be zero. Negative values are not allowed as expected values. Weighted average
values for a commodity cannot be used to compensate for negative values for a specific
type or variety of a commodity.

(c)

The expected value for a commodity may be adjusted to reflect any customary charges,
such as, but not limited to, seed costs or drying expenses, not included in the price
source.

(d)

For commodities insured under an ARH Policy, the expected yields and values should
reflect the yields and values the insured’s ARH policy is insured at. If the insured has
produced the commodity in years prior to the first year of their whole-farm history
period and the AIP agrees the years prior to their whole-farm history period do not
reflect the yields and values of the commodity the insured can expect to produce during
the insurance period, the yields and values may be adjusted as determined by the AIP,
using all years within the whole-farm history period, including the lag year, if available
when the IFOR is submitted.
FCIC-18160-1

185

Exhibit 18
B.

Expected Value and Yield Guidelines (Continued)

Expected Value (Continued)
(3)

Required Adjustments to Expected Values for Vertically Integrated Operations and Related
Taxpayers
The integrated relationship between the divisions or related operations of an integrated
operation and the interaction between related taxpayers can affect the value, cost, and price of
commodities, goods, and services used by such persons. It can also affect the expected value
an insured may report. The expected value reported for these farm operations must be
reasonable and comparable with expected values for the commodity from objective third party
market information.
Adjustments made for the cost of post-production operations from such persons must also be
customary and comparable to the costs of disinterested third parties.
Refer to the CIH for acceptable record requirements for vertically integrated entities. The
Market Certification is not applicable to WFRP and Micro Farm.

(4)

Methods for Determining Expected Values
The expected value on the FOR and the Expected Value and Yield Source Document
Certification Worksheet will be based on the information reported by the insured and reviewed
by the AIP at the time the expected value is determined as required in accordance with Section
17(c)(4) of the WFRP policy. They must be realistic and consistent with available market
information supported by verifiable or direct marketing sales records and take into account
current local markets, cycles, and trends. Post-production operations and the cost of
commodities purchased for resale, if applicable, must be removed from the expected values.
Market readiness expenses may be left in the expected values.
The following provides the methods and sources for determining and reviewing expected
values for commodities, in order of priority:

October 2022

(a)

IF THE COMMODITY is under a marketing contract, THEN USE the price contained in the
marketing contract. Refer to Subparagraph B(5) below for more information.

(b)

IF THE COMMODITY is produced and sold during the current insurance period, but prior
to the time the IFOR is completed, THEN USE the actual sale price the commodity was
sold for.

(c)

IF THE COMMODITY is not under a marketing contract to be sold at a specified price and
has not been sold during the insurance period prior to the IFOR being completed, THEN
USE the price that the AIP agrees best reflects the price the insured can expect to
receive on the insured’s farm and for the market where the commodity will be sold,
obtained from the most applicable following source for the insured’s farm operation
(the following sources do not have an order of priority):

FCIC-18160-1

186

Exhibit 18
B.

Expected Value and Yield Guidelines (Continued)

Expected Value (Continued)
(i)

Prices reported by AMS, including Market News Reports, NASS, ERS, or other
government agency for the commodity in the area where the applicant/insured
normally sells the commodity. Prices that represent open market sales by first
handlers, i.e., shipping point prices, generally include post-production costs that
must be removed from the expected value, if applicable.
Example:

(ii)

October 2022

The AMS price reported for a variety of apples in the area is
$17.00 per box. The post-production expenses are $12.00 per
box. The price the insured can expect to receive is $5.00 per box.

The FCIC published price or other price election used to determine the insured’s
guarantee for an FCIC reinsured policy, less local basis, where the insured
normally sells the commodity. These prices may include post-production costs
that must be removed and/or the prices may require an adjustment to accounts
for packouts and utilization values, i.e., apple prices should be adjusted for a
normal packout by variety considering percent packed for fresh and processing
local market prices that results in an expected value that is reasonable for a
loose field box of apples by variety. These prices may also require adjustment
for average production quality, i.e., alfalfa prices adjusted for average quality of
all yearly cuttings.
Example 1:

The FCIC published price for potatoes is $15.00 per
hundredweight. The post-production costs are $5.00 per
hundredweight. The price the insured can expect to receive is
$10.00 per hundredweight.

Example 2:

The FCIC published price for Honeycrisp apples is $37.95, the
packing costs average $6.90/box, and average 56% of the loose
field box packs fresh, the price the insured can expect to receive is
$18/box after adjusting for packing costs and weighting the loose
field box average yield for fresh and processing apple prices.

(iii)

The current local, average, cash bid price for the commodity in the local area for
the month of harvest where the insured normally sells the commodity.

(iv)

The average new crop price offered by at least two commercial buyers, one
selected by the insured and one by the AIP.

(v)

Prices from a reliable disinterested third-party source that the AIP approves.
Refer to Subparagraph B(6)(b) below. These prices may include post-production
costs that must be removed.

(vi)

The average market price used to calculate NAP payments for the area where
the insured normally sells their commodity (including direct market price if
applicable).
FCIC-18160-1

187

Exhibit 18
B.

Expected Value and Yield Guidelines (Continued)

Expected Value (Continued)
(vii)
(d)

IF THE COMMODITY is not under a marketing contract to be sold at a specified price, has
not been sold during the insurance period prior to the IFOR being completed, and no
disinterested third-party source exists, THEN USE the average price the insured received
for the three most recent years.
Note:

(e)

(5)

October 2022

The AIP must adjust the three-year average to reflect local market cycles
and trends as stated in Subparagraph B(4) below.

IF THE COMMODITY is not under a marketing contract to be sold at a specified price, has
not been sold during the insurance period prior to the IFOR being completed, and no
acceptable price source exists, THEN USE zero as the expected value and all revenue will
be considered RTC for claim purposes.

Marketing Contract Price
(a)

(6)

Other price information provided or approved by RMA.

To be considered a marketing contract under WFRP, there must be an agreement in
writing between the insured and a buyer containing at a minimum:
(i)

the insured’s commitment to produce the commodity on their farm operation
during the insurance period;

(ii)

the insured’s commitment to deliver the production to the buyer;

(iii)

the buyer’s commitment to purchase all of the production stated in the contract;
and

(iv)

a contract price, including a specified price for the commodity or an amount over
a base price that will be paid for the production. The contract price is the
amount specified without regard to any discount or incentive that may apply.

(b)

Multiple contracts with the same buyer may be reported on separate lines for the
commodity or, if they are for the same type of the commodity, can be considered a
single marketing contract, with the contract price reported as a weighted average of all
the applicable contract prices.

(c)

Contracts that do not meet the requirements of (a) above are not considered marketing
contracts for WFRP.

(d)

For the amount of insured commodities produced under a marketing contract, the
expected value will be calculated as of the date the marketing contract becomes
effective within the limitation in Subparagraph 49(1)(b).

Sources of Expected Values
FCIC-18160-1

188

Exhibit 18
B.

Expected Value and Yield Guidelines (Continued)

Expected Value (Continued)
(a)

(b)

October 2022

The source used to determine the expected value in Subparagraph (4) above must
reflect the price of the commodity:
(i)

During the insurance period and when the commodity will be produced. For
example, if the commodity is traded on the futures market (not including
specialty types or organic practice) and the price of the commodity on the
market is below the FCIC published price, the AIP will not agree to using the FCIC
published price to determine the expected value;

(ii)

In the marketing area where the insured’s commodity will be sold. For example,
the basis used to determine the price of the commodity (if any) will be the
insured’s local basis;

(iii)

When the commodity will be harvested. For example, the AIP will not agree to
using a source that includes a price premium for storing the commodity after
harvest;

(vi)

At the time the expected value is determined in accordance with section 17(c)(4)
of the WFRP policy. For example, if FCIC published a price for the commodity in
November which is significantly different from the price the insured can
reasonably expect to receive at harvest at the time the insured submits their
IFOR the following March, the AIP will not agree to using the FCIC published
price to determine the expected value;

(vii)

Must be recorded on the Expected Yield and Value Source Document
Certification Worksheet; and

(viii)

Verifiable records or direct marking sales records submitted with the Expected
Yield and Value Source Document Worksheet, by the SCD.

Reliable disinterested third-party sources of pricing information may include, but not
limited to:
(i)

Commodity Broker Reports;

(ii)

District Crush Reports;

(iii)

Packer/Processor Reports;

(iv)

Marketing Cooperative Reports; and

(v)

Futures Market Prices for the month of harvest with basis removed to adjust to
the local market basis.

FCIC-18160-1

189

Exhibit 18
B.

Expected Value and Yield Guidelines (Continued)

Expected Value (Continued)
Important:

The policy does NOT allow the use of alternative insurance prices that
may be offered by privately administered non-reinsured supplemental
products that are available.

Expected Yield
(1)

Expected Yield by Commodity
Each commodity by rate code, if applicable, the insured intends to produce in the insurance
period must be listed on a separate line on the FOR. An expected yield must be determined for
each commodity and rate code listed. Expected yields must be:
(a)

reasonable, realistic, and consistent with available local agronomic information; and

(b)

supported by verifiable records submitted by the insured by SCD for commodities on
their IFOR or at the time the RFOR is submitted for other commodities. The records
provided must include yield and acreage for all years used to determine the expected
yield. Insured’s approved APH records must be provided for commodities covered with
an underlying policy authorized by the Act.

The same commodity by rate code may have different expected values or expected yields based
on practices, types or varieties, markets, planting seasons, or other reasons (see below).
(2)

Methods for Determining Expected Yields
The expected yield of the commodity listed on the FOR and the Expected Value and Yield
Source Document Certification Worksheet is the yield that the insured can expect to produce
on their farm operation under normal growing conditions, as determined by the insured’s
entire farm operation’s production history or other data sources. If yields for a commodity on
different parts of the operation are expected to differ, use a weighted average yield, and
document the entire commodity by rate code. The yield reported on your FOR must reflect:
(a)

the yield the insured can expect to produce on their entire farm operation;

(b)

for the first year of insurance (new insureds) any damage to the commodity that
occurred prior to the beginning of the insurance period;

(c)

any change in practice (e.g., adding drip irrigation, removing irrigation, or beginning
production of certified organic commodities) or production method used during the
insurance period; and

(d)

in the case of perennials consider:
(i)

October 2022

the impact on yield caused by the existence of any disease and the lack of or
excessive pruning prior to or during the insurance period.

FCIC-18160-1

190

Exhibit 18
C.

Expected Value and Yield Guidelines (Continued)

Expected Yield (Continued)
(ii)

when perennial commodities with underlying coverage under another FCIC
policy have insurable tree or vines that were planted/set out, grafted, or
dehorned in the orchard, vineyard, grove, or bog and insured reports a yield
greater than the average yield for the underlying coverage. Blocks where
expected yields are adjusted from what is reported on the underlying coverage
due to planting, grafting, dehorning, etc. should be recorded on the Expected
Value and Yield Source Document Certification Worksheet separately. Refer to
Paragraph 22.

(iii)

any alternate bearing or downward trending tendencies of the insured
commodity.

(iv)

when an insured’s underlying FCIC policy is not reported by variety or varietal
group, the expected yield based on the average approved yield must be
reflective of the specific varieties insured under the WFRP policy.

Important:

(3)

The following table provides the methods and sources for determining and reviewing expected
yields for commodities:
(a)

IF THE COMMODITY is insured by another policy offered under the Act that provides
individual yield or ARH coverage in the county where the commodity will be produced;
(i)

(ii)

October 2022

For commodities showing alternate bearing or downward trending tendencies,
refer to the CIH for the variance, alternate bearing, and downward trending tests
and procedures. When referencing those procedures, APH database refers to
the whole-farm history period and the approved APH yield refers to the
expected yield.

AND THE INSURED:
(A)

cannot provide detailed documentation based on their past production
practices and any changes to the production practices during the
insurance period the AIP agrees demonstrates a higher or lower expected
yield; or

(B)

has produced the commodity in years prior to the first year of your
whole-farm history period and the AIP agrees the years prior to your
whole-farm history period does reflect the yield the insured can expect to
produce during the insurance period.

THEN THE EXPECTED YIELD will be that policy’s average (simple or weighted)
approved yield for all units (by practice/type/variety) on the farm’s policy
offered under the Act, whether planted or not, that provides individual yield
coverage.
FCIC-18160-1

191

Exhibit 18
C.

Expected Value and Yield Guidelines (Continued)

Expected Yield (Continued)
(b)

IF THE COMMODITY is insured by another policy offered under the Act that provides
individual yield or ARH coverage in the county where the commodity will be produced,
AND THE INSURED provides detailed documentation based on their past production
practices and any changes to the production practices during the insurance period the
AIP agrees demonstrates a higher or lower expected yield, THEN THE EXPECTED YIELD
may be based on the expected yield determined by the AIP to be appropriate based on
the provided documentation and the average yields produced under the new
production practice approved by the AIP.
Note:

(c)

IF THE COMMODITY is insured by another policy offered under the Act that provides
individual yield or ARH coverage in the county where the commodity will be produced,
AND THE INSURED has produced the commodity in years prior to the first year of your
whole-farm history period and the AIP agrees the years prior to your whole-farm history
period do not reflect the yield the insured can expect to produce during the insurance
period, THEN THE EXPECTED YIELD may be an expected yield, as determined by the AIP,
using all years within the whole-farm history period, including the lag year, if available
when the IFOR is submitted.

(d)

IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy,
the insured must complete a Yield and Revenue Report for the commodity. The Yield
and Revenue Report must:

(e)

(i)

Be submitted on or before the SCD for commodities reported on the IFOR or at
the time they submit their RROR for commodities added to their farm operation
after the SCD; and

(ii)

Contain a continuous record of production history of the commodity beginning
with the most recent year for a maximum of four years preceding the insurance
period, including the lag year.

IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy;
(i)

October 2022

Actual yield data under the new practice must be provided and serve as
the base for the expected yield.

AND:
(A)

the commodity has been produced on the insured’s farm operation
during the whole-farm history period, including the lag year;

(B)

the insured has at least four years of production history of the
commodity in their whole-farm history period, including the lag year; and

(C)

the insured certifies and/or provides yield records for all four years
preceding the insurance period, including the lag year.
FCIC-18160-1

192

Exhibit 18
C.

Expected Value and Yield Guidelines (Continued)

Expected Yield (Continued)
(ii)

(f)

IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy;
(i)

(ii)

October 2022

THEN THE EXPECTED VALUE will be the average yield produced on the insured’s
farm operation during the four years preceding the insurance period, including
the lag year, if available when the IFOR is submitted.

AND:
(A)

the commodity has been produced on the insured’s farm operation;

(B)

the insured cannot certify and/or provide at least four years of
production history for the four years preceding the insurance year,
including the lag year; and

(C)

the insured certifies and/or provides yield records for the lag year, if
available when the IFOR is submitted, or at least one consecutive year
starting with the most recent year in the four years the commodity was
produced, immediately preceding the lag year.

THEN THE EXPECTED VALUE will be based on the average yield produced on the
insured’s farm operation for the four years preceding the insurance period, as
determined by the AIP using the certified and/or provided yield records for
production history:
(A)

for the lag year; and

(B)

for the remaining year(s) of the four years preceding the insurance year
the insured cannot certify and/or provide yield records, a replacement
yield will be entered using the most applicable following source for the
insured’s farm operation:
1

FCIC published transitional yields in the county or nearest county
with similar agronomic conditions to the county where
commodity will be produced;

Yields published or used by other USDA programs (e.g., yields
used to establish NAP coverage); or

Yield information provided by participants in the Cooperative
Extension System, or a successor organization that does not
include:
a

university yield trial data; or

crop budget reports.
FCIC-18160-1

193

Exhibit 18
C.

Expected Value and Yield Guidelines (Continued)

Expected Yield (Continued)
(g)

IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy;
(i)

(ii)

October 2022

AND:
(A)

the commodity has been produced on the insured’s farm operation;

(B)

the insured is a carryover insured;

(C)

the expected yield of the prior year’s policy was determined using a
replacement yield and available certified and/or yield records; and

(D)

the insured does not certify and/or provide yield records for any year
after they previously certified and/or provided yield records for the most
recent years within the four years preceding the insurance year, including
the lag year.

THEN THE EXPECTED YIELD will be based on the average yield produced on the
insured’s farm operation for the four years preceding the insurance period, as
determined by the AIP:
(A)

using the previously certified and/or provided yield records for
production history for the most recent years within the four years
preceding the insurance year, including the lag year;

(B)

using a replacement yield from the most applicable following sources, for
the insured’s farm operation, for each year prior to the first year the
insured first certified or provided yield records for production history for
the most recent four years preceding the insurance year, including the lag
year:
1

FCIC published transitional yields in the county or nearest county
with similar agronomic conditions to the county where
commodity will be produced;

Yields published or used by other USDA programs (e.g., yields
used to establish NAP coverage); or

Yield information provided by participants in the Cooperative
Extension System, or a successor organization that does not
include:
a

university yield trial data; or

crop budget reports; and

FCIC-18160-1

194

Exhibit 18
C.

Expected Value and Yield Guidelines (Continued)

Expected Yield (Continued)
(C)

(h)

IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy;
(i)

(ii)

AND:
(A)

the commodity has been produced on the insured’s farm operation;

(B)

the insured is a carryover insured;

(C)

the expected yield of the prior year’s policy was determined solely using
a replacement yield; and

(D)

the insured does not certify and/or provide yield records for the lag year
if the commodity was produced.

THEN THE EXPECTED YIELD will be based on the average yield produced on the
insured’s farm operation for the four years preceding the insurance period, as
determined by the AIP:
(A)

(B)

October 2022

using a zero yield for each year after the insured previously certified
and/or provided yield records for the most recent year(s) within the four
years preceding the insurance year for each year the insured produced
the commodity, including the lag year.

using a replacement yield for the years prior to the lag year from the
most applicable following sources, for the insured’s farm operation:
1

FCIC published transitional yields in the county or nearest county
with similar agronomic conditions to the county where
commodity will be produced;

Yields published or used by other USDA programs (e.g., yields
used to establish NAP coverage); or

Yield information provided by participants in the Cooperative
Extension System, or a successor organization that does not
include:
a

university yield trial data; or

crop budget reports; and

using a zero yield for the lag year.

FCIC-18160-1

195

Exhibit 18
C.

Expected Value and Yield Guidelines (Continued)

Expected Yield (Continued)
(i)

IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy;
(i)

(ii)

(j)
D.

AND:
(A)

the insured is not a carryover insured; and

(B)

the commodity has not been produced on the insured’s farm operation;
or

(C)

has been produced and the insured cannot certify and/or provide any
yield records for the production history for most recent years within the
four years preceding the insurance year, including the lag year.

THEN THE EXPECTED VALUE will be based on the replacement yield, as
determined by the AIP, obtained from the most applicable following sources for
the insured’s farm operation:
(A)

FCIC published transitional yields in the county or nearest county with
similar agronomic conditions to the county where commodity will be
produced;

(B)

Yields published or used by other USDA programs (e.g., yields used to
establish NAP coverage); or

(C)

Yield information provided by participants in the Cooperative Extension
System, or a successor organization that does not include:
1

university yield trial data; or

crop budget reports.

IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy,
AND an expected value cannot be established, THEN THE EXPECTED VALUE will be zero.

Expected Value and Yield Corrections
(1)

At any time, the AIP determines the price or yield used to establish the expected revenue of a
commodity does not reflect the price the insured could have expected to receive when the
commodity was harvested or the yield the insured could expect to produce on their farm
operation under normal growing conditions, the AIP will correct the price or yield used to
establish the expected revenue to:
(a)

October 2022

a price consistent with the amount the insured can expect to receive for the amount of
the commodity the insured will harvest in the market where the commodity will be sold
if the price:

FCIC-18160-1

196

Exhibit 18
D.

Expected Value and Yield Guidelines (Continued)

Expected Value and Yield Corrections (Continued)
(i)

includes post-production expenses; or

(ii)

is significantly different (at least 10 percent) from the other prices received for
the commodity in the local market where the commodity is sold, and the insured
cannot demonstrate the price difference is due to an insured COL.

Important:
(b)

a yield consistent with the amount the insured can expect to produce on their farm
operation if the yield:
(i)

reported is significantly different (at least 10 percent) from other yields in the
county where the commodity is produced or the insured’s other yields for the
commodity; and

(ii)

the insureds cannot provide a valid agronomic basis for the difference in yields.

Important:
(c)
(2)

The 10 percent tolerance does not apply at the time the expected yield is
determined. Refer to Subparagraph (A).

an amount consistent with the practice or production method actually carried out if the
price or yield was based on a practice or production method used in previous years.

If the AIP determines the error in reporting the price or yield was inadvertent the AIP will
modify the RFOR to reflect the correct information and the insured’s amount of insurance,
premium, and any indemnity will be based on the modified report. Otherwise, Section 15(j) of
the WFRP policy will apply.
Important:

October 2022

The 10 percent tolerance does not apply at the time the expected value is
determined. Refer to Subparagraph (A).

A simple statement from the insured stating the error or omission was
inadvertent is not sufficient to prove the error or omission was inadvertent.

FCIC-18160-1

197

Exhibit 19

Method of Establishment

The following table provides methods of establishment, abbreviations, and the numeric code for RMA
processing.
Method of Establishment

Abbreviation
AC
AC
AC
AC
HEAD
HEAD
HEAD
LN/FT
LN/FT
LN/FT
NUM
NUM
NUM
OTHER
OTHER
OTHER
PLANT
PLANT
PLANT
SQ/FT
SQ/FT
SQ/FT
WT
WT
WT

Acre
Acre – Native Sod
Acre – Organic
Acre – Transitional Organic
Head
Head – Organic
Head – Transitional Organic
Linear Feet
Linear Feet – Organic
Linear Feet – Transitional Organic
Number
Number – Organic
Number – Transitional Organic
Other
Other – Organic
Other – Transitional Organic
Plant
Plant – Organic
Plant – Transitional Organic
Square Feet
Square Feet – Organic
Square Feet – Transitional Organic
Weight
Weight – Organic
Weight – Transitional Organic

October 2022

FCIC-18160-1

Numeric Code
20
19
21
16
17
18
15
96
97
90
95
93
88
99
98
91
22
25
24
23
26
27
94
92
89

198

Exhibit 20

Unit of Measure

The following table provides units of measure, abbreviations, and the numeric code for RMA processing.
Unit of Measure
Bag/Sack
Bale
Barrel
Bin
Box
Bushel
Carton
Dozen
Each
Flat
Gallon
Head
Hive
Hundredweight
Lug
Nursery/Greenhouse
Other
Ounce
Package
Peck
Pint
Plant
Pound
Purchased for Resale
Quart
Square Foot
Ton

October 2022

Abbreviation
BG/SK
BALE
BBL
BIN
BOX
BU
CTN
DOZ
EACH
FLAT
GAL
HEAD
HIVE
CWT
LUG
NUG
OTHER
OZ
PKG
PECK
PINT
PLANT
LB
PFR
QT
SQ/FT
TON

FCIC-18160-1

Numeric Code
11
12
10
24
13
01
14
15
97
16
07
17
18
03
19
96
99
05
21
09
06
22
02
98
08
23
04

199