All Regions
1066, 1066, Micro-Farm-Program, Micro-Farm-Program.pdf, 676564, https://cms.organictransition.org/wp-content/uploads/2023/08/Micro-Farm-Program.pdf, https://cms.organictransition.org/resource/micro-farm-program/micro-farm-program/, , 3, , , micro-farm-program, inherit, 1065, 2023-08-09 22:59:14, 2023-08-09 22:59:14, 0, application/pdf, application, pdf, https://cms.organictransition.org/wp-includes/images/media/document.png
Micro Farm Program
Micro Farm Program
Insurance Period
The Micro Farm program provides a risk
management safety net for all commodities
on your farm under one insurance policy.
This insurance plan is tailored for any farm
with up to $350,000 in approved revenue,
including farms with specialty or organic
commodities (both crops and livestock), or
those marketing to local, regional, farmidentity preserved, specialty, or direct
markets.
Coverage is provided for the duration of
your tax year (the insurance period). The
insurance period is a calendar year if your
taxes are filed by calendar year, or a fiscal
year if your taxes are filed by fiscal year.
Availability
Micro Farm is available in all counties in all
50 states.
Eligibility
Eligibility for Micro Farm coverage
requires you to:
•
Be eligible to receive Federal benefits;
•
Be a U.S. citizen or resident;
•
File either a Schedule F tax form
or other farm tax form that can be
converted to a Substitute Schedule F
for a specified number of years (see
“Information You Provide” below);
•
Have no more than $350,000 of
approved revenue (or $400,000 if you
had Micro Farm the previous year);
and
Causes of Loss
Micro Farm provides protection against the
loss of insured revenue due to unavoidable
natural causes which occur during the
insurance period. Micro Farm will also
provide carryover loss coverage if you are
insured the following year. See the policy for
a list of covered causes of loss.
Important Dates
Sales Closing, Cancellation, and Termination
Dates
Calendar Year and Early Fiscal Year Filers:
January 31, February 28, or March 15 (by county)
Late Fiscal Year Filers – November 20
Revised Farm Operation Report Dates
All Counties – July 15
Contract Change Date – August 31
Talk to your crop insurance agent about the
dates that apply for your county.
AUGUST 2022
•
Have no more than 50 percent of total
revenue from commodities purchased
for resale.
If you are a vertically integrated entity or
have other Federal crop insurance policies,
you do not qualify for Micro Farm but may
be eligible for coverage under the WholeFarm Revenue Protection policy.
Buying Micro Farm
You can buy Micro Farm from
a crop insurance agent by the
sales closing date shown for
each county in the actuarial
documents at:
webapp.rma.usda.gov/apps/
actuarialinformationbrowser/.
A list of crop insurance agents
is available at all USDA service
centers and on the RMA
website at:
www.rma.usda.gov/
Information-Tools/AgentLocator-Page.
If you have difficulty finding
an agent, contact your RMA
Regional Office.
Contact Us
USDA/RMA
Mail Stop 0801
1400 Independence Ave., SW
Washington, DC 20250
Phone: (202) 690-2803
Fax: (202) 690-2818
Website: www.rma.usda.gov
E-mail: rma.cco@rma.usda.gov
MICRO FARM PROGRAM
Coverage
Micro Farm protects your farm against
the loss of farm revenue that you earn
or expect to earn from:
•
All commodities on your farm
except timber, forest, and forest
products; and animals for sport,
show, or pets.
•
Commodities you produce during
the insurance period, whether
they are sold or not.
•
Commodities you buy for resale
during the insurance period.
2
Information You
Provide
There are certain documents you
must provide to your crop insurance
agent to get Whole-Farm Revenue
Protection insurance:
•
Micro Farm “insured revenue” is the
total amount of insurance coverage
provided by this policy. Your crop
insurance agent and Approved
Insurance Provider determine the
farm’s “approved revenue” using the
following information:
•
Whole-Farm History Report;
•
Farm Operation Report; and
•
The coverage level you choose
(50-85 percent) multiplied by the
approved revenue is the insured
revenue amount.
The approved revenue amount is
determined on your Farm Operation
Report and is the lower of the
expected revenue or your whole-farm
historic average revenue. Coverage
levels range from 50 percent to 85
percent. Catastrophic Risk Protection
(CAT) coverage is not available.
AUGUST 2022
A Whole-Farm History Report
with a minimum of 3 consecutive
years of Schedule F or other farm
tax forms (it must be possible to
complete a Substitute Schedule
F form if you filed farm tax forms
other than Schedule F). For the
2023 policy year, tax forms from
2020-2022 are required.
◊
If you have not yet filed taxes
for the most recent tax year,
a Substitute Schedule F must
be submitted for that year.
◊
If you are a tax-exempt entity
(such as a Tribal entity) and
have acceptable third-party
records available, those
can be used to complete
Substitute Schedule F tax
forms.
•
A Farm Operation Report
containing information on your
farm operation for the current
insurance period.
•
Any supporting information
required, including other signed
tax forms, to show the farm tax
forms are accurate and were filed
with the IRS.
Growing Farm
Operations
If your farm operation has been
expanding over time you may be
allowed to increase your approved
revenue amount based on an indexing
procedure. The indexing procedure
requires 5 consecutive years of
revenue history and measures growth
of the farm operation over this period.
Prices and Yields
Commodities are not assigned
individual prices under Micro Farm.
Instead, one value for all commodities
on your farm operation is established
based on the average allowable
revenue of the previous 3 years.
Market Readiness
and Post-Production
Operations
Market readiness and post-production
operations, such as canning, freezing,
and processing activities, can be
included in your allowable revenue
and will be used when calculating
your farm’s insurance guarantee
under Micro Farm. Revenue from
sources other than agricultural
commodities, such as bottled water or
souvenir sales, must be removed from
allowable revenue.
MICRO FARM PROGRAM
Loss Reporting
Requirements
You must submit a notice of loss
within 72 hours after discovery that
revenue for the policy year could
be below the insured revenue.
Inspections may be required for
losses.
Claim Settlement
You must have filed farm taxes for
the policy year before any claim can
be made and you must make claims
no later than 60 days after the date
you submit farm tax forms to the
Internal Revenue Service (IRS). Claim
payments for a revenue loss under
Micro Farm are paid within 30 days
after the determination of a payment
due as long as you are in compliance
with the policy.
3
Premium Subsidy
Your premium subsidy will be based
on the coverage level you elect.
Additionally, all farms insured under
Micro Farm receive a whole-farm
premium subsidy.
This fact sheet gives only a general overview
of the crop insurance program and is not a
complete policy. For further information and
an evaluation of our risk management needs,
contact a crop insurance agent.
Claims are settled after taxes are filed
for the policy year. A loss under the
Micro Farm policy occurs when the
revenue-to-count for the insured tax
year falls below the insured revenue.
Revenue-to-count for the insured tax
year is:
•
Revenue from the tax form that is
“approved revenue” according to
the policy;
•
Adjusted by excluding inventory
from commodities sold that were
produced in previous years;
•
Adjusted by including the value of
commodities produced during the
tax year that have not yet been
harvested or sold; and
•
Any other adjustments required
by the policy such as those from
uninsured causes of loss.
USDA is an equal opportunity provider, employer, and lender.
rma.usda.gov