United States 

Department of

Agriculture

Federal Crop

Insurance

Corporation

FCIC-18160 (11-2018)

WHOLE-FARM 

REVENUE 

PROTECTION 

PILOT 

HANDBOOK 

2019 and Succeeding Policy

Years

November 2018 FCIC-18160 TP 1 

RISK MANAGEMENT AGENCY

KANSAS CITY, MO 64133

TITLE: WHOLE-FARM REVENUE 

PROTECTION PILOT HANDBOOK

NUMBER: FCIC-18160

EFFECTIVE DATE:

2019 Succeeding Policy Years

ISSUE DATE: November 15, 2018

SUBJECT:

Provides the procedures and 

instructions for the Whole-Farm 

Revenue Protection program.

OPI: Product Administration and Standards Division

APPROVED: 

/s/ John W. Underwood

Acting Deputy Administrator for Product Management 

REASONS FOR ISSUANCE

Changes: See changes or additions in text which have been highlighted. Three stars (***) identify 

where information has been removed. 

1. Throughout the handbook – Removed the language referencing the Livestock Underwriting

Capacity Manager. Added the term disinterested third party where applicable.

2. Throughout the handbook updated years to correspond to those applicable to the 2019 policy

year.

3. Throughout the handbook updated commodity codes and added rate codes where applicable.

4. Paragraph 6 - Added clarifying language for when the policy year is designated.

5. Subparagraph 21(1)(c)(vii) – Revised language regarding eligibility of producers that were

qualified as BFRs in the previous year. Removed the carryover language associated with the

above producers.

6. Subparagraph 21(1)(d) – Clarified procedure by removing language associated with fractional

share of a farming activity.

7. Subparagraph 23(1)(b) – Added language stating which county should be listed on the

application.

8. Paragraph 41 – Removed language addressing commodities with multiple commodity codes as it

is no longer relevant with the consolidation of commodity codes by practice.

9. Subparagraph 44(2) & (7) – Clarified procedure on the use of cooperative distributions as

allowable revenue for revenue to count.

10. Subparagraph 45(3)(k) – Clarified that Workers’ Compensation is not considered medical

insurance for purposes of WFRP.
November 2018 FCIC-18160 TP 2

REASONS FOR ISSUANCE (Continued)

11. Subparagraph 48(2) & (5) – Removed language allowing summarized lines of the same 

commodity on the Farm Operation Report.

12. Subparagraphs 48(2) & 49(5) – Revised the language regarding expected values and yields. 

Removed language used in determining expected yields as it is now in exhibit 18.

13. Subparagraph 48(6)(k) - Changed language to be inclusive of all commodities rather than just 

perennial crops.

14. Subparagraph 49(5) & (6) Provided clarifying language on when expected values and yields are 

determined based on when the commodity is added to Revised Farm Operation Report.

17. Subparagraph 49(9) – Revised the date on which an expected value must be determined for a 

replacement commodity is certain situations. Revised example Farm Operation Report excerpts 

to match the revised version in exhibit 10.

18. Paragraph 50 – Added language on how to handle the submission of a Final Farm Operation 

Report when the producer does not submit one due to policy cancelation in the subsequent year.

19. Subparagraph 53(1) - Added language to clarify which county to use when considering expected 

revenue for rating purposes.

20. Subparagraph 71(2) - Added instructions to document insured’s choice to use indexed average 

revenue on the WFHR

21. Subparagraph 71(3)(d) – Added language regarding expanding operations with net increases in 

production capacity.

22. Subparagraph 71(3)(e)(iii) - Added language and example detailing what to do when an operation 

expands during a policy year.

23. Subparagraph 71(4) – Clarified and added language on what is not considered expanded 

operations

24. Subparagraph 71(8) – Added procedure on what adjustments are required when claim year taxes 

are filed differently than any year within the whole-farm history period.

25. Subparagraph 73(4) – Added language about what happens when a producer does not submit a 

beginning inventory as required.

26. Subparagraph 74(5) - Added language for accounts payable when the insured has declared

bankruptcy.

27. Paragraph 91 - Added language clarifying the 10-day time frame allowed after all items have 

been submitted to the AIP before insurance attaches.

28. Subparagraph 92(16) – Added an uninsurable COL for production of a commodity with no 

verified market.
November 2018 FCIC-18160 TP 3

REASONS FOR ISSUANCE (Continued)

29. Subparagraph 94A(7) – Clarified procedure for failing to comply with notice requirements for 

damage due solely to uninsured COLs.

30. Subparagraph 94B(6) – Added language allowing AIPs the ability to defer claim adjustments 18-

days when commodities are in storage.

31. Subparagraph 95(2)(d) - Added language clarifying no replant payment will be made until a 

RFOR is submitted.

32. Subparagraph 95(3) – Clarified language used in determining the maximum replant payment 

amount using the Revised Farm Operation Report.

33. Subparagraph 105B - Added exception to remind the AIPs that coverage for lack of irrigation is 

provided or not provided based on what is known or should have been known at the time the 

Intended Farm Operation Report is submitted.

34. Subparagraph 107A(1) - Added reminder that the AIP may defer, at their discretion, the final 

claim when commodities are in storage during the insurance period.

35. Paragraph 107B – Added approved expenses to the list of calculations that must be revised when 

tax records are changed.

36. Paragraph 122 – Added language regarding sold operations, coverage transfer, and premiums 

due.

37. Subparagraph 141A - Added language for uninsured COL when organic production is sold as 

conventional production at a conventional price.

38. Subparagraph 143C - Added language for expected yield in regard to animals.

39. Exhibit 2 – Revised the definition for abandon. Added definitions for the following terms: 

commodity code, disinterested third party, expected yield, and rate code.

40. Exhibit 3 – Removed Method of Establishment codes for Summarized Lines.

41. Exhibit 3 - Added Transitional Organic Method.

42. Exhibit 6 item 11 - Added boxes to capture if the insured chooses to use indexed average 

revenue.

43. Exhibit 7 Items 9 & 14 – Clarified what source to use for determination of expected values for 

commodities in inventory.

44. Exhibit 9 – Added two items to account for actual costs and net value of commodities purchased 

in previous years at claim time.

45. Exhibit 10 - Added items to capture rate and commodity codes. Added items to account for 

commodity production that may be fed or sold.
November 2018 FCIC-18160 TP 4

REASONS FOR ISSUANCE (Continued)

46. Exhibit 10 item 4a - Added item to capture if the county with the majority of expected revenue 

changed within the policy year.

47. Exhibit 10 items 7810,11, 13D,14D – Updated calculations within the item numbers to account 

for the revised item numbers.

48. Exhibit 15 – Added procedure to handle when claim year taxes are filed using a method 

differently than any year within the whole-farm history period.

49. Exhibit 15B - Added language to clarify how to work a claim when the insured’s allowable 

revenue is not consistent (net vs. gross) in the policy year compared to the whole farm history 

period.

50. Exhibit 15 item 5 - Added note to clarify when “I” is applicable.

51. Exhibit 16 – Removed language regarding adjustments for commodities listed on the Market 

Animal and Nursery Inventory Report as the report captures the necessary information.

52. Exhibit 17 – Clarified language on the determination of expected values for commodities in 

inventory.

53. Exhibit 17E(2)(b) - Added language and example clarifying when to use local market value when 

claims are being finalized.

54. Exhibit 18 – Renumbered exhibit to account for the added language regarding expected yields. 

Revised expected value chart to clarify procedure on determining expected values. Added 

expected yield procedures for determining expected yields, which includes reference to the CIH 

for Yield Variance, Alternate Bearing, and Downward Trending Tests.

55. Exhibit 20 Item 10 – Removed expected yield language as it is found in exhibit 18.

56. Exhibit 20 Items 11 & 13 – Revised the language stating when the source documents are due for 

expected values and yields.
November 2018 FCIC-18160 TP 5

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK

CONTROL CHART

Whole-Farm Revenue Protection Pilot Handbook

TP

Page(s)

TC

Page(s)

Text

Page(s)

Exhibit 

Number

Exhibit 

Page(s)

Date Directive 

Number

Remove Entire Handbook 11-2017 FCIC-18160

Insert Entire Handbook 11-2018 FCIC-18160

Current Index 1-6 1-4 1-91 1-20 92-185 10-2018 FCIC-18160

FILING INSTRUCTIONS:

The handbook pages listed in the Control Chart above under the “Insert” heading replace such pages in 

the 2018 Whole-Farm Revenue Protection Pilot Handbook, FCIC-18160 (11-2017). This handbook is 

effective for the 2019 and succeeding policy years and is not retroactive to any 2018 or prior policy 

year determinations.
November 2018 FCIC-18160 TP 6

PAGE INTENTIONALLY LEFT BLANK
November 2018 FCIC -18160 TC 1

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK

TABLE OF CONTENTS

PAGE NO.

PART 1 GENERAL INFORMATION AND RESPONSIBILITIES

1 General Information ............................................................................................................... 1

2 Responsibilities....................................................................................................................... 2

3 Access to Commodities and Records..................................................................................... 5

4 Document Origination............................................................................................................ 7

5 Duplicate WFRP Policies....................................................................................................... 7

6 Tax Years................................................................................................................................ 7

7 Accounting Methods .............................................................................................................. 7

8-20 (Reserved) ............................................................................................................................... 8

PART 2 WFRP POLICY INFORMATION

21 Eligibility................................................................................................................................ 9

22 Pre-Acceptance Inspections.................................................................................................. 12

23 Application ........................................................................................................................... 12

24 Vertically Integrated and Related Tax Entity....................................................................... 15

25-40 (Reserved) ........................................................................................................................... 15

PART 3 COVERAGE AND REPORTS

Section 1 Coverage Information and Required Reports

41 Basic Information and Commodity Count ........................................................................... 16

42 Coverage Levels................................................................................................................... 19

43 Replant Payments................................................................................................................. 20

44 Allowable Revenue and Allowable Revenue Worksheet..................................................... 20

45 Allowable Expenses and Allowable Expenses Worksheet .................................................. 23

46 Whole-Farm History Report................................................................................................. 25

47 Use of a Different Person’s Tax Returns.............................................................................. 25

48 Intended Farm Operation Report.......................................................................................... 27

49 Revised Farm Operation Report........................................................................................... 31

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 ....................................................................................... 43

54-70 (Reserved) ........................................................................................................................... 43

Section 2 Revenue and Expense Calculations

71 Revenue ................................................................................................................................ 44

72 Expenses............................................................................................................................... 50

73 Inventory............................................................................................................................... 53

74 Accounts Receivable, Payable, and Prepaid Expenses Report............................................. 55

75-90 (Reserved) ........................................................................................................................... 57
November 2018 FCIC -18160 TC 2

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK

TABLE OF CONTENTS

PAGE NO.

PART 4 LOSS AND CLAIM INFORMATION

Section 1 Loss Information

91 Insurable Losses ................................................................................................................... 58

92 Uninsurable Losses............................................................................................................... 58

93 Quality Determinations ........................................................................................................ 60

94 Duties in the Event of Damage or Loss................................................................................ 60

95 Replant Payment................................................................................................................... 63

96-100 (Reserved) ......................................................................................................................... 64

Section 2 Claim Information

101 Adjustments to Revenue....................................................................................................... 65

102 Adjustments to Expenses...................................................................................................... 67

103 Changes Occurring Within Policy Year............................................................................... 68

104 Changes That Occurred in Year Prior to Policy Year.......................................................... 70

105 Damage and Price Fluctuation That Occurred in the Year Prior to the Policy Year............ 70

106 Revenue-to-Count................................................................................................................. 71

107 Indemnities........................................................................................................................... 72

108-120 (Reserved) ....................................................................................................................... 75

PART 5 ADMINISTRATIVE PROVISIONS

121 Assignment of Indemnity ..................................................................................................... 76

122 Transfer of Coverage............................................................................................................ 76

123 Other Insurance .................................................................................................................... 76

124 Noninsured Crop Disaster Assistance Program ................................................................... 77

125 Commodities as Payment ..................................................................................................... 77

126 Mediation, Arbitration, and Judicial Reviews of AIP Determinations ................................ 77

127 Controlled Substance Provisions.......................................................................................... 77

128-140 (Reserved) ....................................................................................................................... 77

PART 6 SPECIAL CIRCUMSTANCES

141 Organically Grown Commodities......................................................................................... 78

142 Post-Production Operations and Market Readiness............................................................. 80

143 Animals................................................................................................................................. 81

144 Nursery ................................................................................................................................. 84

145 Commodities with Market Order Reserves.......................................................................... 86

146 Commodities Sold with Co-op Retainages........................................................................... 87

147 Vertically Integrated Operations .......................................................................................... 89

148 Commodities Purchased for Resale...................................................................................... 90
November 2018 FCIC -18160 TC 3

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK

TABLE OF CONTENTS

PAGE NO.

EXHIBITS

1 Acronyms and Abbreviations ........................................................................................................ 92

2 Definitions ..................................................................................................................................... 93

3 Method of Establishment............................................................................................................. 103

4 Unit of Measure ........................................................................................................................... 104

5 Form Standards............................................................................................................................ 105

6 Whole-Farm History Report ........................................................................................................ 116

7 Inventory Report.......................................................................................................................... 120

8 Accounts Receivable, Payable, and Prepaid Expenses Report.................................................... 125

9 Market Animal and Nursery Inventory Report............................................................................ 129

10 Farm Operation Report ................................................................................................................ 136

11 Replant Payment Worksheet........................................................................................................ 145

12 Schedule F Example .................................................................................................................... 148

13 Substitute Schedule F Example ................................................................................................... 150

14 Allowable Expenses Worksheet .................................................................................................. 152

15 Allowable Revenue Worksheet ................................................................................................... 156

16 Claim for Indemnity Form........................................................................................................... 162

17 Inventory Valuation Guidelines................................................................................................... 167

18 Expected Value and Yield Guidelines......................................................................................... 169

19 Direct Marketing Sales Records.................................................................................................. 181

20 Expected Value and Yield Source Document Certification Worksheet ...................................... 183
November 2018 FCIC -18160 TC 4

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November 2018 FCIC -18160 1

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.

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.

B. 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.

C. Duration

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

D. Required to Offer

Because it is an RMA developed product, the AIPs are required to offer the WFRP pilot 

program to all eligible persons and must administer the program according to the WFRP 

pilot policy and the procedures in this handbook.

E. 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@rma.usda.gov or in writing at the following address:

Office of Deputy Administrator for Product Management

Product Administration and Standards Division

USDA—Risk Management Agency

Beacon Facility—Mail Stop 0812

P.O. Box 419205 Kansas City, MO 64141-6205

RMA will not attempt to instruct agents or insureds of the AIP.
November 2018 FCIC -18160 2

1 General Information (Continued)

E. Procedural Questions (continued)

(2) If a perceived error is identified, notify RMA by e-mail at rma.wfrp@rma.usda.gov

or in writing at the above address.

Clearly identify the error and provide a proposed correction.

If RMA determines the error identified is significant, RMA will issue a correction 

either in the existing policy year through a slipsheet to the WFRP handbook or a 

memorandum/bulletin. Conversely, if RMA determines the error identified is not 

significant, the correction will be included in the subsequent issuance of the WFRP 

handbook.

F. Other procedures

Other procedures apply to the administration of the WFRP policy as applicable or as stated 

in this handbook.

2 Responsibilities

A. RMA PASD Responsibilities

RMA PASD will:

(1) establish and maintain the policy, procedure and instructions for administering the 

WFRP program; and

(2) provide guidance and clarification, as needed, regarding the policy, procedure and 

instructions for the WFRP program.

B. AIP Responsibilities

AIPs must:

(1) offer WFRP to all persons;

(2) provide persons insured under the WFRP policy a copy of the WFRP policy;

(3) comply with and implement the standards, procedures, instructions, and requirements 

in the WFRP policy, 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 and 

subparagraph D;

(6) prior to acceptance, ensure the application is accurate and complete;
November 2018 FCIC -18160 3

2 Responsibilities (Continued)

B. AIP Responsibilities (continued)

(7) ensure all documentation, determinations, and calculations are completed as provided 

in the WFRP policy 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 are properly signed and 

dated by the insured;

(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 Farm Operation

Report are questionable.

C. 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 and expenses for each year in the wholefarm 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;
November 2018 FCIC -18160 4

2 Responsibilities (Continued)

C. Agent Responsibilities (continued)

(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. 

D. Insured Responsibilities

The AIP must advise the insureds to:

*** (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 Intended Farm Operation Report 

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 includes actual production histories and acreages.

(4) Provide any applicable organic documentation requested by the AIP. Refer to 

paragraph 141.

(5) Provide information about any changes to the farm operation to the AIP during the 

year.

(6) Provide the necessary information to complete their Revised Farm Operation Report 

for the insurance period.

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

(8) Complete the final production report on the Final Farm Operation Report 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.

(10) Provide completed Schedule F or Substitute Schedule 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.
November 2018 FCIC -18160 5

2 Responsibilities (Continued)

D. Insured Responsibilities (continued)

(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.

3 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.

Example 1: The whole-farm history period for a calendar or early fiscal year filer for the 

2019 policy year is 2013, 2014, 2015, 2016, and 2017 (2018 is a lag year and 

is not included in the 2019 whole-farm history period). Records for 2013

through 2017, all years in the whole-farm history period, and for 2019 must be 

maintained for three years after the insurance period for 2019 ends or the date 

of final payment of indemnity for the 2019 policy year, whichever is later.

Example 2: The whole-farm history period for a late fiscal year filer for the 2019 policy 

year are tax years 2012, 2013, 2014, 2015, and 2016 (Tax year 2017 is a lag 

year and is not included in the 2019 whole-farm history period). Records for 

2012 through 2016, all years in the whole-farm history period, and for 2019

(tax year 2018) must be maintained for three years after the insurance period 

for policy year 2019 ends or the date of final payment of indemnity for the 

2019 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.
November 2018 FCIC -18160 6

3 Access to Commodities and Records (Continued)

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. Such persons are also authorized to 

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:

(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 and allowable expenses stated on farm tax forms and supporting 

documents;

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

(6) documentation supporting beginning and ending inventories, and accounts payable,

receivable, and prepaid expenses;

(7) ownership, share, lease, contract agreement, or other agreements that are applicable to 

the insured commodities; and

(8) 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.
November 2018 FCIC -18160 7

4 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.

5 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.

6 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 they have a short tax year in 

their whole-farm history period, or if the 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, beginning and ending 

accounts payable, and beginning and ending accounts receivable, are synonymous with the 

beginning and ending dates for the IRS tax year.

7 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 and expenses to the year in which revenue was earned.
November 2018 FCIC -18160 8

7 Accounting Methods (Continued)

Under the WFRP policy, 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, Payable, and Prepaid Expenses Report, is used to determine what has been 

produced during the insurance period.

Example: 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.

8-20 (Reserved)
November 2018 FCIC -18160 9

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):

(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;

(vi) 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 wholefarm history period, unless they are a carryover insured; and
November 2018 FCIC -18160 10

21 Eligibility (Continued)

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

*** (vii) the insured qualifies as a BFR or would have qualified as a BFR in the previous 

policy year, and they have fewer than five years of farm tax forms in their whole 

farm history period:

(A) The insured, if qualified as a:

(1) BFR, must have at least three consecutive years of farm tax records in 

their whole-farm history period;

(2) BFR in the previous policy year, must have at least four consecutive

years of farm tax forms in their whole-farm history period; and

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

Example 1: A producer qualifies as a BFR in the 2019 policy year. To be 

eligible for a 2019 WFRP policy, the producer must have farm tax 

records for 2015, 2016, and 2017. The producer must have also 

earned farm revenue in 2018.

Example 2: A producer would have qualified as a BFR in the 2018 policy year. 

To be eligible for a 2019 WFRP policy, the producer must have 

farm tax records for 2014, 2015, 2016, and 2017. The producer 

must have also earned farm revenue in 2018.

(d) 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.

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

(a) Persons:

(i) whose tax year corresponding to the insurance period will be a short tax year;

(ii) that have a short tax year in their whole-farm history period; or

Exception: If the applicant has a short-tax year in their whole-farm history, 

they may 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.

(iii) whose lag year is a short tax year.
November 2018 FCIC -18160 11

21 Eligibility (Continued)

(b) Individuals less than 18 years of age where legal majority has not been conferred by a 

court:

Exception: Individuals less than 18 years of age where legal majority has not been 

conferred by a court may be eligible for WFRP insurance if:

(1) the individual provides evidence an insurable share exists;

(2) a written statement describing the farm operation and insurable 

share is provided;

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

(4) 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 $8.5 million based on 

the Intended Farm Operation report.

(b) at SCD it includes animal and animal products and the expected revenue from 

animals and animal product intended commodities is greater than $1 million.

***

(c) at SCD the expected revenue from nursery or greenhouse intended commodities is 

greater than $1 million;

(d) the commodity count as determined using the Intended Farm Operation Report 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)

(e) 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

(f) the farm operation includes any production of or revenue from controlled substances.
November 2018 FCIC -18160 12

21 Eligibility (Continued)

Note: RMA is precluded from offering insurance for controlled substances under

WFRP by the provisions 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.

(4) 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.

22 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. 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 Intended Farm Operation Report.

For the first year of insurance, a pre-acceptance inspection and applicable worksheet 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 Intended Farm Operation Report 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 policy years and may require additional 

underwriting to avoid paying uninsured losses that occurred prior to the date that coverage

initially began.

23 Application

(1) An application is required. Before accepting the application, AIPs must ensure the 

application:

(a) is for a qualifying person;

(b) contains all required information according to the WFRP policy;

Note: The county listed should be the county where the majority of the total 

expected revenue is expected to be earned.
November 2018 FCIC -18160 13

23 Application (Continued)

(i) If no county is expected to provide the majority 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 Revised Farm Operation report is submitted will 

be used for rating purpose.

(iii) Document the county change on the Revised Farm Operation Report. 

Refer to exhibit 10.

(c) is for the same person as the person that filed Federal income tax returns with the IRS 

for the tax year; and

(d) 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 preacceptance 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.

Example for Calendar Year Filer: A producer’s tax year is January 1, 2019 –

December 31, 2019. The producer’s application 

and all applicable forms must be submitted on or 

prior to the SCD that falls in 2019.

Example for an Early Fiscal Year Filer: A producer’s tax year is August 1, 2019 – July 31, 

2020. The producer’s application and all 

applicable forms must be submitted on or prior to

the SCD that falls in 2019.

Example for a Late Fiscal Year Filer: A producer’s tax year is September 1, 2018 –

August 31, 2019. The producer’s application and 

all applicable forms must be submitted on or prior 

to November 20, 2018 SCD for the 2019 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.
November 2018 FCIC -18160 14

23 Application (Continued)

(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 and expense history, including copies of farm tax forms.

(b) Copy of the current year’s Farm Operation Report.

(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 Whole-Farm History Report submitted by the insured. If the AIP 

provides the insured such notice:

(a) The insured may submit a written request for reconsideration;

(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 

Whole-Farm History Report to reflect the amount of allowable revenue and allowable 

expenses 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.
November 2018 FCIC -18160 15

23 Application (Continued)

(13) Notwithstanding subparagraph (12), 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 Whole-Farm History Report and Intended Farm Operation Report as 

required under section 15 of the WFRP policy on or before the SCD.

(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.

24 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.

25-40 (Reserved)
November 2018 FCIC -18160 16

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:

(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.

(3) 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 on 

the Farm Operation Report is counted once to determine the number of commodities, 

regardless of the number of times the commodity code is used;

Example: 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.

(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 Farm Operation 

Report and round the result to whole dollars to determine the qualifying revenue 

threshold;

(4) The commodity count is calculated as follows:

(a) Sum the expected revenue for each individual commodity code;

(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;
November 2018 FCIC -18160 17

41 Basic Information and Commodity Count (Continued)

(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: At SCD, the applicant reported six (6) commodities on the Intended Farm 

Operation Report (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) x 0.333 = .056} x $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 ($9500), 

carrots ($9000), cucumbers ($6000), and squash ($2000) 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).

***

(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 Farm Operation Report with the highest expected 

revenue has another FCIC Revenue plan of insurance available for the county listed 

on the WFRP application.
November 2018 FCIC -18160 18

41 Basic Information and Commodity Count (Continued)

Note: 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.

(6) A farm operation producing a commodity that is listed on the Farm Operation Report 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 Farm Operation Report 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.

Note: 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 Farm 

Operation Report with the highest expected revenue); therefore, this 

farm operation is ineligible for a WFRP policy.

Example 2: A farm operation in St. Claire County, MI 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 Farm Operation Report with the highest 

expected revenue), so this farm operation is ineligible for a WFRP 

policy.
November 2018 FCIC -18160 19

41 Basic Information and Commodity Count (Continued)

Example 3: A farm operation in St. Claire County, Michigan produces three types 

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 Farm Operation Report will be used for determination of WFRP 

eligibility.

Example 4: 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.

(7) 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.

42 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 

SP;

(d) may change the coverage level, if requested in writing on or before the SCD; and

Exception: 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.
November 2018 FCIC -18160 20

42 Coverage Levels (Continued)

(e) 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.

Exception: 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.

(2) 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

A replant payment may be allowed if specified in the SPs. Refer to paragraph 95.

44 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 5 and 15 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 (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.
November 2018 FCIC -18160 21

44 Allowable Revenue and Allowable Revenue Worksheet (Continued)

(d) 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 that the IRS requires you to report, 

including, but not limited to:

(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).

(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.

(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.

(6) 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 revenue-tocount for claim purposes. Refer to paragraph 101 for information regarding adjustments to 

revenue for claims purposes.

(7) All of the following must be excluded from the allowable revenue in each year of the 

whole-farm history period, expected revenue for the insurance period, and revenue-to-count 

for claims:

(a) Revenue from any post-production operations;

(b) Revenue from value added to commodities (such as gift baskets and wine);
November 2018 FCIC -18160 22

44 Allowable Revenue and Allowable Revenue Worksheet (Continued)

(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, including NAP, Federal crop 

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).

(8) 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 revenue-to-count 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;

(d) Crop insurance indemnities authorized under the Act, prevented planting payments 

from other FCIC policies, and any other federal government program that does not 

allow multiple benefits; and

Example: 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 revenue-tocount for WFRP.

(e) 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 that exceeds the insured’s deductible, as determined in paragraph 

123, will be included as revenue-to-count for claims in the current policy year.
November 2018 FCIC -18160 23

45 Allowable Expenses and Allowable Expenses Worksheet

(1) On or before the SCD, an Allowable Expenses 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 the whole-farm history period. Refer to exhibits 5 and 14 for required elements 

with descriptions and examples of the Allowable Expenses Worksheet.

(2) Expenses are used under this policy only to adjust the insured revenue downwards if 

expenses during the insured year are not equal to at least 70 percent of the approved 

expenses.

The AIP must not accept any expense amount or an adjustment to the expense amount if 

the amount reported for WFRP purposes cannot be verified through the use of verifiable 

records.

(3) Allowable expenses will be listed on the Allowable Expenses Worksheet and for WFRP 

purposes will be limited to the following expenses:

(a) the cost or other basis of animals and other commodities you bought for resale;

(b) car and truck expenses;

(c) chemicals;

(d) conservation expenses;

(e) custom hire (machine work);

(f) depreciation and IRS Section 179 expense deduction not claimed elsewhere (include 

only the amount of depreciation allowed for animals);

(g) feed purchased;

(h) fertilizers and lime;

(i) freight and trucking;

(j) gasoline, fuel, and oil;

(k) insurance (other than health), for the purposes of WFRP, Worker’s Compensation is 

not considered health insurance;

(l) labor hired (less employment credits) exclude shareholder wages, if reported on the 

corresponding line of the Schedule F;

(m) repairs and maintenance;

(n) seeds and plants purchased;
November 2018 FCIC -18160 24

45 Allowable Expenses and Allowable Expenses Worksheet (Continued)

(o) storage and warehousing (exclude expenses related to post-production operations, 

such as cold and controlled atmosphere storage);

Example: Exclude storage expenses of harvested commodities and include expenses 

for inputs such as plants that are to be transplanted.

(p) supplies purchased (exclude those used in post-production operations) Refer to

subparagraph (5) below;

(q) utilities;

(r) veterinary, breeding, and medicine; and

(s) other farm expenses (include only those related to the production of commodities 

allowed for reporting by the IRS). 

(4) Allowable expenses do not include expenses for commodities in which the insured does not 

have an insurable interest.

(5) Exclude any expenses associated with post-production operations (except do not exclude 

expenses that are considered market readiness expenses) from the allowable lines of the 

farm tax forms.

Example 1: A lettuce farm must harvest their lettuce directly into boxes in the field in 

order to remove the lettuce from the field. The cost of the boxes and labor to 

harvest and pack the lettuce in the field as it is harvested do not have to be 

removed from the expenses reported as ‘supplies purchased’ or ‘labor hired’ 

(both allowable expenses).

Example 2: A farm selling to direct markets harvests vegetables and fruits, washing and 

trimming them at the side of the field and placing in plastic bags or small 

boxes so they can be transported to market. The cost of the bags, boxes, and 

labor do not have to be removed from the expenses reported as ‘supplies 

purchased’ or ‘labor hired’ (both allowable expenses).

Example 3: A farm selling pears and apples harvests the fruit, putting them in large bins 

that are hauled to a processing facility on the farm (bins are retained for re-use 

during harvesting). The cost of boxes, labor, waxing, and grading at the 

processing facility are significant costs for these commodities and therefore,

do not qualify as the minimum necessary to remove the commodities from the 

field and make the commodity market ready, and are not performed in or near 

the field. These costs must be removed from the allowable expenses.
November 2018 FCIC -18160 25

46 Whole-Farm History Report

(1) Insureds must provide a completed Whole-Farm History Report on or before the SCD for 

the policy year.

(2) The Whole-Farm History Report includes the:

(a) allowable revenue and allowable expenses calculated on the Allowable Revenue and 

Allowable Expenses Worksheets in paragraphs 44 and 45 for each year of the wholefarm history period;

Example 1: The whole-farm history period for a calendar or early fiscal year filer for the 

2019 policy year is 2013, 2014, 2015, 2016, and 2017. Tax year 2018 is the

lag year and is not included in the 2018 whole-farm history period, except for 

a qualifying person with less than five years in their whole-farm history 

period.

Example 2: The whole-farm history period for a late fiscal year filer for the 2019 policy 

year are tax years 2012, 2013, 2014, 2015, and 2016. Tax year 2017 is a lag 

year and is not included in the 2018 whole-farm history period, except for a 

qualifying person with less than five years in their whole-farm history period.

(b) sum, simple average, indexed average, and expanded operation values for both the 

allowable revenue (Refer to paragraph 71) and the allowable expenses (Refer to

paragraph 72); and

(c) highest of the simple average, indexed average (if applicable) or expanded operation 

(if applicable) whole-farm allowable revenue and allowable expenses is entered as 

the whole-farm historic average revenue and expenses.

Refer to exhibits 5 and 6 for required elements, descriptions of required elements, and an 

example of a Whole-Farm History Report.

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 Whole-Farm History Report. If Substitute Schedule F 

forms are used, they must also be provided at that time. Allowable Revenue and Allowable 

Expenses Worksheets 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:
November 2018 FCIC -18160 26

47 Use of a Different Person’s Tax Returns

(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

(iii) Is willing to provide all records necessary under the policy including the 

Federal income tax returns necessary.

(c) 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 Whole-Farm History Report that represents the 

combination of the applicant's/insured's allowable revenue and allowable 

expenses, and the allowable revenue and allowable expenses 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

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

(i) verifiable documentation that supports the income and expenses 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.

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

(a) all requirements in the policy and subparagraph (1) are met; and
November 2018 FCIC -18160 27

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

(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) approved, the applicant's/insured's allowable revenue and allowable expenses and the 

other person’s allowable revenue and allowable expenses will be combined for the 

applicable year; or

(b) denied, the applicant's/insured's Whole-Farm History Report and all other applicable 

reports will be modified to reflect only the approved allowable revenue and allowable 

expenses of the applicant/insured for each applicable year.

48 Intended Farm Operation Report

(1) The Intended Farm Operation Report is the form on which the insured provides all required 

information regarding the intended commodities that the insured plans to produce during 

the insurance period and that the insured can expect to earn or will obtain revenue from 

during the insurance period. Refer to exhibit 10 that includes an example of an Intended, 

Revised, and Final Farm Operation Report.

Insureds must provide an Intended Farm Operation Report to the AIP on or before the SCD 

for the policy year. Insureds may submit an Intended Farm Operation Report following the 

CCD of the current policy year. For example, the CCD for 2019 is August 31, 2018. An 

insured may submit an Intended Farm Operation Report on or after September 1, 2018 for 

the 2019 policy year. If a carryover insured does not file an Intended Farm Operation 

Report by the SCD, the policy will be cancelled. Refer to subparagraph 23(13).

(2) The Intended Farm Operation Report will include a list of all intended commodities the 

insured plans to produce during the year. The following apply to the Intended Farm 

Operation Report:

(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 20.
November 2018 FCIC -18160 28

48 Intended Farm Operation Report (Continued)

(c) If a marketing contract becomes effective after the Intended Farm Operation Report is 

submitted, the expected value shall be revised to reflect the price contained in the 

marketing contract for the portion of production under contract.

***

(d) 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.

(e) Commodities produced on Native Sod must be listed on a separate line on the 

Intended Farm Operation Report.

(f) Commodities with multiple rate codes must be listed on separate lines on the Intended 

Farm Operation Report. Also, commodities with multiple types, practices, shares, or 

that have different expected values or yields, regardless of whether there are separate 

rate codes, must be listed on multiple lines on the Intended Farm Operation Report. 

Expected values that are less than zero cannot be combined with other lines of a 

commodity to achieve a weighted average for the commodity.

***

(g) AIPs must monitor how commodity counts are calculated since the commodity count 

forms the basis of the insurance.

(h) 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 actuarials. Premium rates are calculated for each individual farm and are based on 

the Revised Farm Operation Report, 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.

(i) The Whole-Farm Historic Average Revenue and Expenses from the Whole-Farm 

History Report are carried forward to the Intended Farm Operation Report. Total 

Expected Revenue from all commodities on the Intended Farm Operation Report is 

summed. The approved revenue is determined as the lesser of the Whole-Farm 

Historic Average Revenue or the Total Expected Revenue from the Intended Farm 

Operation Report. 

(j) The AIP identifies farm operations that are vertically integrated or has related 

operations and if there are post-production expenses that were removed.

(k) 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.

(l) If the farm operation includes any revenue from controlled substances, the policy will 

be void and no coverage will be provided.

(m) The Total Expected Revenue (item 13E) on the Intended Farm Operation Report 

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.
November 2018 FCIC -18160 29

48 Intended Farm Operation Report (Continued)

Example: 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 x $150.00 = $600 x 7.0 acres = $4,200 x .500 

share = $2,100 Total Expected Revenue.

Intended 

6. Commodity 

Name

7. 

Commodity

Code

8. 

Rate Code

9.

Method of 

Establishment

10.

Yield

11.

Expected 

Value

12.

Expected 

Revenue 

(10x11)

13A.

Intended 

Quantity

13B. 

Cost/Ba

sis 

and/or 

Value 

13C. 

Share

13D. 

Percent 

Produced 

to Sell

13E.

Total 

Expected 

Revenue

[(12x13A) –

13B) x 13C] 

x 13D.

Onions 001300 0013 Acres 4.0 tons $150.00 $600 7.0 acres 0.5000 1.0000 $2,100

Refer to exhibit 10 for example of Farm Operation Report 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 Intended Farm Operation Report.

Example: 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 Farm Operation Report.

(4) The expected value provided on the Intended Farm Operation Report 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: If the insured derives more than 50 percent of total expected revenue from 

commodities purchased for resale, they are not eligible for WFRP insurance.

(5) 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 Intended Farm 

Operation Report. If an intended commodity has a different rate code, significantly different 

yields, expected values, or the insured’s share is less than 100 percent, the AIP must list it 

on separate lines on the Intended Farm Operation Report. 

***
November 2018 FCIC -18160 30

48 Intended Farm Operation Report (Continued)

Example: 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 Intended Farm Operation Report because of the substantially different 

*** expected values of the production.

Intended 

6. Commodity 

Name

7. 

Commodity

Code

8. 

Rate Code

9.

Method of 

Establishment

10.

Yield

11.

Expected 

Value

12.

Expected 

Revenue 

(10x11)

13A.

Intended 

Quantity

13B. 

Cost/Ba

sis 

and/or 

Value 

13C. 

Share

13D. 

Percent 

Produced 

to Sell

13E.

Total 

Expected 

Revenue

[(12x13A) –

13B) x 13C] 

x 13D.

Onions 001300 0013 Acres 4.0 tons $150.00 $600 7.0 ac. 1.0000 1.0000 $4,200

Onions 001300 0013 Acres 2.0 tons $190.00 $380 3.0 ac. 1.0000 1.0000 $1,140

***

(6) Any condition or change on the farm that has occurred since the Whole-Farm history 

period must be reported on the Farm Operation Report. Such conditions and changes 

include, but are not limited to:

(a) change in the size of the farm operation;

(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 Farm Operation Report.

(7) If the Intended Farm Operation Report only includes intended revenue from perennial 

commodities already established on the farm operation and no changes are anticipated, the 

insured may submit their Revised Farm Operation Report at the time their Intended Farm 

Operation Report is submitted.

Important: The insured is still required to report any changes that occur within the 

insurance period.
November 2018 FCIC -18160 31

49 Revised Farm Operation Report

(1) A Revised Farm Operation Report must be submitted during the insurance period, similar 

to an acreage report, to reflect the activities that actually occurred on the farm. The 

Revised Farm Operation Report 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 Revised Farm Operation Report is completed. The 

Revised Farm Operation Report may only be revised later, with AIP approval and 

must exclude any changes to revenue resulting from a covered cause of loss.

(2) If the insured’s Intended Farm Operation Report includes only expected revenue from 

perennial commodities already established on their farm operation and no changes are 

anticipated, the insured may submit their Revised Farm Operation Report at the time the 

Intended Farm Operation Report is submitted.

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 Revised Farm Operation Report, 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 Intended Farm Operation Report as the Revised Farm 

Operation Report for premium calculation purposes.

(4) The purpose of a Revised Farm Operation Report is to report information about changes to 

the farm operation after the Intended Farm Operation Report was submitted. The Revised 

Farm Operation Report 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 Intended Farm Operation Report 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 Intended Farm 

Operation Report is submitted.
November 2018 FCIC -18160 32

49 Revised Farm Operation Report (Continued)

(5) If a commodity is added to the Revised Farm Operation Report that was not listed on the 

Intended Farm Operation Report, 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 Revised Farm Operation Report 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 20.

***

(6) If a commodity is added to the Revised Farm Operation Report that was not listed on the 

Intended Farm Operation Report or the Revised Farm Operation Report by the Revised 

Farm Operation Report 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 Revised 

Farm Operation Report is initially submitted (on or before the required reporting date as 

stated in subparagraph 1 above), are identified on the Intended Farm Operation Report. If 

those intended commodities are actually produced, these numbers will be carried forward 

to the Revised Farm Operation Report.

(8) If a marketing contract becomes effective after the Revised Farm Operation Report 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 49(1)(b) for limitations on Revised 

Farm Operation revisions.

(9) The following table provides instructions for determining the quantity and expected 

revenue to enter on the Revised Farm Operation Report. Refer to exhibit 10 for example of 

Farm Operation Report submitted at required reporting date and revised during the 

insurance period.
November 2018 FCIC -18160 33

49 Revised Farm Operation Report (Continued)

IF an intended

commodity on 

SCD is ...

AND ... THEN ...

planted, produced 

or purchased for 

resale, at the time 

the Revised Farm 

Operation Report is 

submitted

no changes are made,

and the intended report 

is still correct as to 

what is being produced 

and what was 

purchased for resale

The numbers pertaining to the quantity 

planted, produced, or purchased for resale and 

expected revenue from the Intended Farm 

Operation Report are carried forward to the 

Revised Farm Operation Report.

not planted, Refer to Example 1 below.

produced or 

purchased for 

resale at the time 

the Revised Farm 

Operation Report is 

submitted

the insured still intends 

to plant, produce, or 

purchase for resale, the 

same amount of the 

commodity in the 

insurance period

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

Do not carry forward any information 

regarding the commodity not planted, 

produced, or purchased for resale. 

Refer to Example 2 below.

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

(1) the actual quantity of the commodity to be 

planted, produced, or purchased for resale 

is entered on the Revised Farm Operation 

Report; and

(2) the expected revenue is calculated using the 

quantity from (1) and entered in the Total 

Expected Revenue column on the Revised 

Farm Operation Report.

Refer to Example 2 below.

planted, produced 

or purchased for 

resale, at the time 

the Revised Farm 

Operation Report is 

submitted

changes were made to 

the quantity planted, 

produced, or purchased 

for resale due to farm 

management decisions

not planted at the 

time the Revised 

Farm Operation 

Report is submitted

1) the AIP verifies the 

failure to plant was 

due to an insured 

cause of loss; and

(1) the quantity of the planted acreage to the 

intended commodity plus any acreage not 

planted due to insured causes and not 

replaced is entered in the “Actual Quantity” 

column of the Revised Farm Operation 

Report for the commodity;
November 2018 FCIC -18160 34

49 Revised Farm Operation Report (Continued)

IF an intended 

commodity on 

SCD is ...

AND ... THEN ...

not planted at the 

time the Revised 

Farm Operation 

Report is submitted

(continued)

(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.

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:

(2) 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 

Revised Farm Operation Report for the 

commodity;

(3) 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 

Revised Farm Operation Report for the 

replacement commodity;

(4) the expected revenue of the acreage in 

item 2 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 Revised Farm Operation 

Report 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 2 if expected revenue 

is reduced to zero or less; and

(5) 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.
November 2018 FCIC -18160 35

49 Revised Farm Operation Report (Continued)

IF an intended 

commodity on 

SCD is ...

AND ... THEN ...

planted but was 

damaged prior to 

harvest and prior to 

the time the 

Revised Farm 

Operation Report is 

submitted

(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

the numbers pertaining to the quantity 

produced and expected revenue from the 

Intended Farm Operation Report are carried 

forward to the Revised Farm Operation Report.

Refer to Example 5 below.

(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

(1) the quantity of the planted acreage to the 

intended commodity damaged and not replaced 

is entered in the “Actual Quantity” column of 

the Revised Farm Operation Report for the 

commodity;

The following applies if some or all acreage of 

the intended commodity damaged will be 

replaced with a replacement commodity:

(2) the quantity of the acreage of the intended 

commodity damaged and replaced is 

entered in the “Actual Quantity” column of 

the Revised Farm Operation Report for the 

commodity;

(3) the quantity and expected revenue of the 

replacement commodity, with expected 

value calculated as of the date the revised 

Farm Operation Report is submitted, is 

entered in the “Actual Quantity” and 

“Expected Revenue” columns, 

respectively, of the Revised Farm 

Operation Report for the replacement 

commodity; 
November 2018 FCIC -18160 36

49 Revised Farm Operation Report (Continued)

IF an intended 

commodity on 

SCD is ...

AND ... THEN ...

planted but was 

damaged prior to 

harvest and prior to 

the time the 

Revised Farm 

Operation Report is 

submitted

(continued)

(4) the expected revenue of the acreage in item 

2 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 

Revised Farm Operation Report for the 

intended commodity not produced (or with 

reduced production and replacement). Do 

not carry forward acres of intended 

commodity in item 2 if expected revenue is 

reduced to zero or less; and

(5) 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 4 below.

Note: Any expected revenue lost due to an 

uninsured cause of loss will be 

considered revenue to count for claims

purposes.

planted but was 

damaged prior to 

harvest and prior to 

the time the 

Revised Farm 

Operation Report is 

submitted

(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

the numbers pertaining to the quantity and 

expected revenue of the damaged intended 

commodity from the Intended Farm Operation 

Report are carried forward to the Revised Farm 

Operation Report.

Refer to Example 4 below.

Note:Any expected revenue lost due to an 

uninsured cause of loss will be considered 

revenue to count for claims purposes.
November 2018 FCIC -18160 37

49 Revised Farm Operation Report (Continued)

IF an intended 

commodity on 

SCD is ...

AND ... THEN ...

changed after the 

date the Revised 

Farm Operation 

Report is due, 

except those 

resulting from a 

covered cause of 

loss

(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 

Revised Farm 

Operation Report 

should be made

the AIP may revise the Revised Farm 

Operation Report 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.

changed after the 

date the Revised 

Farm Operation 

Report is due, 

except those 

resulting from a 

covered cause of 

loss (continued)

(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 

Revised Farm 

Operation Report 

should be made.

no revisions are made to the Revised Farm 

Operation Report and all revenue will count as 

revenue to count, even if the commodity is not 

listed on the Revised Farm Operation Report.

Example 1: A producer intends to produce 125 acres of corn and 100 acres of soybeans 

this insurance period and submitted such on the Intended Farm Operation 

Report. 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 Intended Farm Operation Report is carried forward 

to the Revised Farm Operation Report for both the corn and soybeans.

Intended Revised 

6. Commodity 

Name

7. 

Commodity

Code

8. 

Rate

Code

9.

Method of 

Establishment

10.

Yield

11.

Expected 

Value

12.

Expected 

Revenue 

(10x11)

13A.

Intended 

Quantity

13B. 

Cost/ 

Basis 

and/or 

Value 

13C. 

Share

13D. 

Percent 

Produced 

to Sell

13E.

Total 

Expected 

Revenue

[(12x13A) –

13B) x 13C] 

x 13D.

14A.

Actual

Quantity

14B.

Actual 

Cost/

Basis 

and/or 

Value

14C.

Share

14D. 

Actual 

Percent 

Produced 

to Sell

14E.

Total Expected 

Revenue 

Corn NIRR 004100 1002 Acres 150 bu. $5.00/bu. $750.00/ac 125 ac. 1.0000 1.0000 $93,750 125 ac. 1.0000 1.0000 $93,750

Soybeans NIRR 008100 1009 Acres 100 bu. $6.00/bu. $600.00/ac 100 ac. 1.0000 1.0000 $60,000 100 ac. 1.0000 1.0000 $60,000

23. Narrative, Expected Values, and Report of Changes: Corn; expected value source AMS at Intended time. Soybeans; expected value source 18(a)(1)(iii)(A) at Intended time; 

producer still intends to plant.
November 2018 FCIC -18160 38

49 Revised Farm Operation Report (Continued)

Example 2: 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 

Intended Farm Operation Report. 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 Intended Farm Operation 

Report and not carried forward to the Revised Farm Operation Report. The 

actual quantity planted and calculated expected revenue for the soybeans and 

wheat is entered on the Revised Farm Operation Report.

Intended Revised 

6. Commodity 

Name

7. 

Commodity 

Code

8. 

Rate 

Code

9.

Method of 

Establishment

10.

Yield

11.

Expected 

Value

12.

Expected 

Revenue 

(10x11)

13A.

Intended 

Quantity

13B. 

Cost/B

asis 

and/or 

Value 

13C. 

Share

13D. 

Percent 

Produced 

to Sell

13E.

Total 

Expected 

Revenue

[(12x13A

) – 13B) 

x 13C] x

13D.

14A.

Actual

Quantity

14B.

Actual 

Cost/

Basis 

and/or 

Value

14C.

Share

14D. 

Actual 

Percent 

Produced 

to Sell

14E.

Total Expected 

Revenue 

Corn NIRR 004100 1002 Acres 150 bu. $5.00/bu. $750.00/ac. 125 ac. 1.0000 1.0000 $93,750

Soybeans NIRR 008100 1009 Acres 100 bu. $6.00/bu. $600.00/ac. 100 ac. 1.0000 1.0000 $60,000 50 ac. 1.0000 1.0000 $30,000

Wheat NIRR 001101 3543 Acres 75 bu. $4.00/bu. $300.00/ac. 50 ac. 1.0000 1.0000 $15,000 40 ac. 1.0000 1.0000 $12,000

23. Narrative, Expected Values, and Report of Changes: Corn; expected value source AMS at Intended time; producer no longer intends to plant corn with no replacement 

commodity; removed from Farm Operation Report. Soybeans; expected value source AMS at Intended time; 50 acres not planted due to uninsured cause of loss; 50 acres 

planted and actual quantity with calculated expected revenue of $30,000.

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 plus those 

acres not planted and not replaced (100 ac.) is carried forward from the 

Intended Farm Operation Report to the Revised Farm Operation Report. 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 

replacement commodity (soybeans) is added to the Farm Operation Report 

using the expected value at the time of planting.

Intended Revised 

6. Commodity 

Name

7. 

Commodity

Code

8. 

Rate

Code

9.

Method of 

Establishment

10.

Yield

11.

Expected 

Value

12.

Expected 

Revenue 

(10x11)

13A.

Intended 

Quantity

13B. 

Cost/

Basis 

and/or 

Value 

13C. 

Share

13D. 

Percent 

Produced 

to Sell

13E.

Total 

Expected 

Revenue

[(12x13A) –

13B) x 13C] 

x 13D.

14A.

Actual

Quantity

14B.

Actual 

Cost/Basis 

and/or 

Value

14C.

Share

14D. 

Actual 

Percent 

Produced 

to Sell

14E.

Total 

Expected 

Revenue 

Corn NIRR 004100 1002 Acres 150 bu. $5.00/bu. $750.00/ac. 125 ac. 1.0000 1.0000 $93,750 100 ac. 1.0000 1.0000 $75,000

Corn NIRR 004100 1002 Acres 150 bu. $5.00/bu. $750.00/ac. 1.0000 1.0000 25 ac. 1.0000 1.0000 $3,750

Soybeans NIRR 008100 1009 Acres 100 bu. $6.00/bu. $600.00/ac. 1.0000 1.0000 $60,000 25 ac. 1.0000 1.0000 $15,000

23. Narrative, Expected Values, and Report of Changes: Corn; expected value source AMS at Intended time; producer did not plant 50 acres of corn due to insured cause of 

loss; carried forward acres planted, and acres not planted not replaced quantity (100 ac.)., Total Expected Revenue calculated for corn acres not planted and replaced $18,750 

(corn) - $15,000 (soybeans) = $3,750. Soybeans; 25 acres planted 15 May 2015; expected value source AMS on plant date.
November 2018 FCIC -18160 39

49 Revised Farm Operation Report (Continued)

Example 4: A producer intends to produce 125 acres of corn and 100 acres of soybeans 

during this insurance period and submits such on the Intended Farm Operation 

Report. 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 Intended Farm 

Operation Report to the Revised Farm Operation Report. 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 Farm Operation Report using the expected value at the time of planting. 

Intended Revised 

6. Commodity 

Name

7. 

Commodity 

Code

8. 

Rate

Code

9.

Method of 

Establishment

10.

Yield

11.

Expected 

Value

12.

Expected 

Revenue 

(10x11)

13A.

Intended 

Quantity

13B. 

Cost/

Basis 

and/or 

Value 

13C. 

Share

13D. 

Percent 

Produced 

to Sell

13E.

Total 

Expected 

Revenue

[(12x13A) –

13B) x 13C] 

x 13D.

14A.

Actual

Quantity

14B.

Actual 

Cost/

Basis 

and/or 

Value

14C.

Share

14D. 

Actual 

Percent 

Produced 

to Sell

14E.

Total 

Expected 

Revenue 

Corn NIRR 004100 1002 Acres 150 bu. $5.00/bu. $750.00/ac. 125 ac. 1.0000 1.0000 $93,750 75 ac. 1.0000 1.0000 $56,250

Corn NIRR 004100 1002 Acres 150 bu. $5.00/bu. $750.00/ac. 1.0000 1.0000 50 ac. 1.0000 1.0000 $22,500

Soybeans NIRR 008100 1009 Acres 100 bu. $6.00/bu. $600.00/ac. 100 ac. 1.0000 1.0000 $60,000 100 ac. 1.0000 1.0000 $60,000

Buckwheat 011400 0114 Acres 75 bu. $4.00/bu. 1.0000 1.0000 50 ac. 1.0000 1.0000 $15,000

23. Narrative, Expected Values, and Report of Changes: Corn; expected value source AMS at Intended time; 50 ac. damaged due to uninsured cause; carried forward planted acres (75 

ac.), 50 damaged acres and replaced added with the Total Expected Revenue calculated $37,500 (corn) - $15,000 (buckwheat) = $22,500. $37,500 (uninsured cause of loss) considered 

revenue to count at claim time; replaced 50 ac. with buckwheat planted on 15 May 2015 expected value source AMS on plant date. Soybeans; expected value source AMS at Intended 

time; 100 ac. planted and damaged due to uninsured cause of loss prior to harvest; carried forward intended; $60,000 (uninsured cause of loss considered revenue to count at claim time).

Example 5: A producer intends to produce 125 acres of corn and submits such on the 

Intended Farm Operation Report. The producer planted the corn and it was 

damaged by an insured cause of loss prior to harvest and prior to the time the 

Revised Farm Operation Report is due. The producer will not replant nor 

replace the corn. The same quantity and expected revenue from the Intended 

Farm Operation Report will be carried forward to the Revised Farm Operation 

Report.

Intended Revised 

6. 

Commodity 

Name

7. 

Commodity

Code

8. 

Rate 

Code

9.

Method of 

Establishment

10.

Yield

11.

Expected 

Value

12.

Expected 

Revenue 

(10x11)

13A.

Intended 

Quantity

13B. 

Cost/

Basis 

and/or 

Value 

13C. 

Share

13D. 

Percent 

Produced 

to Sell

13E.

Total 

Expected 

Revenue

[(12x13A) –

13B) x 13C] 

x 13D.

14A.

Actual

Quantity

14B.

Actual 

Cost/

Basis 

and/or 

Value

14C.

Share

14D. 

Actual 

Percent 

Produced 

to Sell

14E.

Total 

Expected 

Revenue 

Corn NIRR 004100 1002 Acres 150 bu. $5.00/bu. $750.00/ac. 125 ac. 1.0000 1.0000 $93,750 125 ac. 1.0000 1.0000 $93,750

23. Narrative, Expected Values, and Report of Changes: Corn; expected value source AMS. 125 acres damaged by an insured cause of loss.
November 2018 FCIC -18160 40

49 Revised Farm Operation Report (Continued)

(6) The Approved Revenue cannot exceed $8.5 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 

revenue to count.

Example: At the time the Revised Farm Operation Report is due, the Approved Revenue is 

$12,000,000. The insured has elected the 85 percent coverage level. 

$8,500,000 divided by .85 equals $10,000,000, so the Approved Revenue for 

this farm is capped at $10,000,000. Insured Revenue will equal $8,500,000 and 

all revenue earned during the insurance period will be considered revenue to 

count.

50 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 Farm Operation Report; 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 Final Farm Operation Report is due the earlier of the 

date a claim is submitted or 60 days after the end of the current insurance period. If 

the final report is not provided, the insured will be limited to a 65 percent coverage 

level for the next insurance period.

(2) If the insured does not submit a Final Farm Operation Report 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 Revised Farm Operation Report to 

complete the Final Farm Operation Report.

51 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, must be provided to the AIP 

for each tax year in the whole-farm history period.

The AIP must request verifiable records and/or direct marketing sales records to 

verify the allowable revenue and allowable expenses on the Whole-Farm History 

Report when the AIP has reason to believe the farm tax form(s) do not provide 

adequate documentation of revenue or expenses for WFRP purposes. In such cases, 

the AIP must not accept any Whole-Farm History Report if the allowable revenue for 

any year cannot be verified through the requested verifiable records and/or direct 

marketing sales records.
November 2018 FCIC -18160 41

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

A. IRS Tax Forms (continued)

(2) Persons who do not file a Schedule F tax form must report and certify allowable 

revenue and expenses 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 and must be 

sufficient to complete the Allowable Revenue Worksheet and Allowable Expense 

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:

(a) the farm tax forms filed with the IRS; and

(b) verifiable records or direct marketing sales records for each year no Schedule F 

tax form was filed

The AIP must not accept any Whole-Farm History Report that does not include or is 

not supported by a Substitute Schedule F and associated verifiable records or direct 

marketing 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.

Verifiable records regarding the buying or selling of a commodity, except those that 

are considered direct marketed, must include the:

(a) name of the commodity;

(b) practice, type, or variety, if applicable;

(c) intended use of a commodity having significantly different expected values 

(e.g., alfalfa hay intended for dairy versus alfalfa hay intended for feedlot 

cattle).

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

(e) date and year of transaction.
November 2018 FCIC -18160 42

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

B. Verifiable Records (continued)

(2) Direct marketing sales records may include contemporaneous records developed at 

the same time of the sale of a commodity (e.g., farmers market, roadside stand, etc.). 

Such contemporaneous records may include daily receipts, etc. If the insured sells 

commodities through direct marketing, the contemporaneous records used to 

determine taxes paid on the Schedule F farm tax form must be provided to the AIP.

(a) Direct marketing sales records regarding the selling of commodities sold 

directly to the consumer 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;

(b) For final production reporting, direct marketing sales records must include at a 

minimum:

(i) estimated percent of total cash receipts for each commodity sold; and

(ii) revenue per commodity received; or

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

(i) amount of each commodity taken to market;

(ii) amount of each commodity returned from the market;

(iii) amount of each commodity sold;

(iv) prices per commodity sold on the date of market; and

(v) revenue received for each commodity.

Refer to exhibit 19 for an example direct marketing sales records.

(3) 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.
November 2018 FCIC -18160 43

52 WFRP Database

An insured’s WFRP database consists of their revenue and expense 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 and expense history in a database for 

calendar and early fiscal year filers for the 2019 policy year are tax years 2013

through 2017. There is always a lag year before the policy year.

Example 2: The five consecutive tax years of revenue and expense history in a database for late 

fiscal year filers for the 2019 policy year are tax years 2012 through 2016. There is 

always a lag year before the policy year.

The revenue and expense 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 or expenses for a 

tax year must be corrected.

53 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 Farm Operation Report. 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 Revised Farm 

Operation Report 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, 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)
November 2018 FCIC -18160 44

Section 2 Revenue and Expense Calculations

71 Revenue

(1) To calculate the average revenue:

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

period:

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

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

Example: Insured A has the following allowable revenue: $130,500 for 2013; 

$149,500 for 2014; $112,000 for 2015; $139,600 for 2016; and $160,360 

for 2017. Insured A’s average revenue is $138,392 [($130,500 + $149,500

+ $112,000 + $139,600 + $160,360) ÷ 5].

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

period:

(i) 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: 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.

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

(iii) add the result of (i) to the result of (ii); and

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

Example: Insured B did not earn any farm revenue during the 2017 policy year due 

to an illness. The insured did earn farm revenue during the 2018 policy 

year which is considered the lag year. The insured has the following 

allowable revenue: $160,360 for 2018 (lag year), $130,500 for 2013; 

$149,500 for 2014; $112,000 for 2015; $139,600 for 2016. Insured B’s 

average revenue is $138,392 [($160,360 + $130,500 + $149,500 + 

$112,000 + $139,600) ÷ 5].

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

period:

(i) 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: 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.
November 2018 FCIC -18160 45

71 Revenue (Continued)

(ii) determine the lowest allowable revenue from the three years in the whole-farm 

history period and the result of (i);

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

(iv) add the results of (i) and (ii) to the result of (iii); and

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

Example: Insured C is a BFR with three years of tax records for 2015-2017. The 

insured also has farm revenue for the 2018 policy year which is considered 

the lag year. The insured has the following allowable revenue: $149,500 

for 2018 (lag year); $112,000 for 2015; $139,600 for 2016; and $160,360 

for 2017. The lowest allowable revenue from the whole-farm history 

period and the lag year is $112,000 (2013). Insured C’s average revenue 

is $134,692 [($149,500 + $112,000 + $112,000 + $139,600 + $160,360) ÷ 

5].

(2) Indexed average revenue may be calculated for persons with increasing revenue to 

determine if increased coverage is applicable. Not all persons qualify to use indexed 

average revenue. If qualified, the insured must choose whether or not to use the indexed 

average revenue. Document the insured’s choice by selecting either yes or no on item 11

of the Whole-Farm History Report. To qualify for indexed average revenue, the insured 

must have five years of farm tax forms in their whole-farm 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 average allowable revenue calculated for the whole-farm history period.

The following table provides the steps for calculating indexed average revenue. The 

person’s average expenses must also be indexed if the insured chooses to use the revenue 

trend factor calculated in step three and it is greater than 1.000. Refer to subparagraph 

72(2) for calculating indexed average expenses.

Step Action

1 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. For WFRP purposes, the result is capped 

at 1.200 and cupped at 0.800.

Example: Insured A has the following allowable revenue: $130,500 for 2013; 

$149,500 for 2014; $112,000 for 2015; $139,600 for 2016; and 

$160,360 for 2017. The following is the result of the first step in the 

indexed average revenue calculation by year.

2014 = 1.146 ($149,500 ÷ $130,500)

2015 = 0.749 ($112,000 ÷ $149,500) (cupped at .800)

2016 = 1.246 ($139,600 ÷ $112,000) (capped at 1.200)

2017 = 1.149 ($160,360 ÷ $139,600)
November 2018 FCIC -18160 46

71 Revenue (Continued)

Step Action

2 Sum the results for each year obtained in step 1, then divide the total by four. 

Round result to three decimal places. For WFRP purposes, the result is floored at 

1.000.

Example: Continuing the example in step 1, including the cup and cap routines,

the result of the second step in the indexed average revenue calculation 

is 1.074 [(1.146 + 0.800 + 1.200 + 1.149) ÷ 4].

3 Raise the result of step 2 to the fourth power to obtain the revenue trend factor. 

Round result to three decimal places.

Example: Continuing the example in step 1, the result of the third step in the 

indexed average revenue calculation is 1.331 (1.074 x 1.074 x 1.074 x 

1.074).

4 Multiply the revenue trend factor calculated in step 3 by the average allowable 

revenue. Round result to nearest whole dollar. The result is the indexed average 

revenue.

Example: Continuing the example in step 1, Insured A’s indexed average revenue 

is $184,200 (1.331 x $138,392). Refer to subparagraph (1) for 

determining average revenue of $138,392.

(3) 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) 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:

(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 value), approved for the 

purpose of determining the expanding operation factor; and

(c) If more than one expansion is applicable to the farm operation, the AIP will determine 

the amount of revenue for each expansion separately.
November 2018 FCIC -18160 47

71 Revenue (Continued)

(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 production 

capacity of those years in the insured’s whole-farm history period when determining 

their expanding operation factor. 

Example: The insured purchased 200 acres this year and they sold 100 acres the 

previous year. The insured’s expanding operation factor will be based on 

a 100 acre increase in production capacity.

(e) The expanded operation adjusted revenue will be calculated using the following 

tables for: 

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

Step Action

1 Determine the Average Allowable Revenue for the Whole-Farm History

Period. Refer to subparagraph 71(1).

Example: Insured A has the following allowable revenue: $130,500 for 

2013; $149,500 for 2014; $112,000 for 2015; $139,600 for 

2016; and $160,360 for 2017.

2013 = $130,500

2014 = $149,500

2015 = $112,000

2016 = $139,600

2017 = $160,360

Total = $691,960 ÷ 5 years = $138,392 average allowable 

revenue

2 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 Average Allowable Revenue.

Example: For the current policy year, the insured has added 50 acres to 

the farm operation with an additional $10,000 of expected 

revenue determined by the AIP.

$138,392

+ $10,000

$148,392

3 Divide the result of step 2 by the result of step 1. Round the result to two 

decimal places, not to exceed 1.35, to determine the Expanding Operation 

Factor.

Example: $148,392 ÷ $138,392 = 1.07 (expanding operation factor)

4 Multiply the result of step 1 by the result of step 3 to determine the 

Expanded Operation Adjusted Revenue.

Example: $138,392 X 1.07 = $148,079
November 2018 FCIC -18160 48

71 Revenue (Continued)

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

Step Action

1 Determine the Average Allowable Revenue for the Whole-Farm 

History Period. Refer to subparagraph 71(1).

Example: Insured A has the following allowable revenue: $130,500 

for 2013; $149,500 for 2014; $112,000 for 2015; $139,600 

for 2016; and $160,360 for 2017.

2013 = $130,500

2014 = $149,500

2015 = $112,000

2016 = $139,600

2017 = $160,360

Total = $691,960 ÷ 5 years = $138,392

2 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 2018, 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.

3 Add the result of step 2 to the result of step 1.

Example: $138,392

+ $25,000

$163,392

4 Divide the result of step 3 by the result of step 1. Round the result to 

two decimal places, not to exceed 1.35, to determine the Expanding 

Operation Factor.

Example: $163,392 ÷ $138,392 = 1.18

5 Multiply the result of step 1 by the result of step 4 to determine the 

Expanded Operation Adjusted Revenue.

Example: $138,392 X 1.18 = $163,303

(iii) For the subsequent policy year (2020), an expansion that occurred in the current 

policy year (2019) will be determined in accordance with (e)(ii) above.

Example: An expansion occurred in the current policy year 2019. The WholeFarm History period for this expansion is 2013, 2014, 2015, 2016, and 

2017 with 2018 being the lag year. For the subsequent policy year 2020, 

the Whole-Farm History period for the expansion occurring in 2019 is 

2014, 2015, 2016, 2017, and 2018 with 2019 being the lag year.
November 2018 FCIC -18160 49

71 Revenue (Continued)

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

Step Action

1 Determine the Average Allowable Revenue for the Whole-Farm 

History Period. Refer to subparagraph 71(1).

Example: Insured A has the following allowable revenue: $130,500 

for 2013; $149,500 for 2014; $112,000 for 2015; $139,600 

for 2016; and $160,360 for 2017.

2013 = $130,500

2014 = $149,500

2015 = $112,000

2016 = $139,600

2017 = $160,360

Total = $691,960 ÷ 5 years = $138,392

2 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 50 acres 

to the farm operation with an additional $10,000 of 

expected revenue determined by the AIP.

3 Add the result of step 2 to the result of step 1.

Example: $138,392

+ $10,000

$148,392

4 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 2018, 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.

5 Add the result of step 4 to the result of step 3.

Example: $148,392

+ $25,000

$173,392

6 Divide the result of 5 by the result of step 1. Round the result to two 

decimal places, not to exceed 1.35, to determine the Expanding 

Operation Factor.

Example: $173,392 ÷ $138,392 = 1.25

7 Multiply the result of step 1 by the result of step 6 to determine the 

Expanded Operation Adjusted Revenue.

Example: $138,392 X 1.25 = $172,990
November 2018 FCIC -18160 50

71 Revenue (Continued)

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

(a) Crop rotation or planting a higher value commodity without changes to the farm 

operation’s existing production capacity; 

(b) For perennial crops, beginning production on a new 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.

(5) The applicant’s/insured’s whole-farm historic average revenue is the highest of their:

(a) simple average;

(b) indexed average revenue (if applicable); or

(c) expanded operation adjusted revenue (if applicable).

The whole-farm historic average revenue is then entered on the Farm Operation Report.

(6) The Total Expected Revenue is determined by the commodities listed on the Farm 

Operation Report and valued in accordance with the WFRP policy and exhibit 18. The 

Total Expected Revenue is used in determining premium amount and approved revenue. 

(7) The approved revenue is determined by the AIP and is used to calculate the WFRP 

coverage amount and premium.

The approved revenue is determined on the Farm Operation Report and is the lesser of the:

(a) total expected revenue; or 

(b) whole-farm historic average revenue.

(8) Claim time only: If it is determined by the AIP that the insured filed their taxes using a 

method (net vs. gross in terms of allowable revenue) differently than any year within their 

whole-farm history period, then all years’ revenue determined to be filed using a different 

method within the whole-farm history period must be adjusted using the same method the 

insured used for the policy year.

72 Expenses

(1) To calculate the average expenses:

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

period:

(i) sum the allowable expenses for each year in the whole-farm history period; and

(ii) divide the result of (i) by five (rounded to the nearest whole dollar).
November 2018 FCIC -18160 51

72 Expenses (Continued)

Example: Insured A has the following allowable expenses: $83,500 for 2013; 

$109,660 for 2014; $83,500 for 2015; $73,900 for 2016; and $110,370 for 

2017. Insured A’s average expenses is $92,186 [($83,500 + $109,660 + 

$83,500 + $73,900 + $110,370) ÷ 5].

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

period:

(i) determine the allowable expenses for the lag year using the insured’s Schedule 

F or Substitute Schedule F (if applicable) and the Allowable Expenses 

Worksheet;

Note: 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

(ii) sum the allowable expenses for each year in the whole-farm history period;

(iii) add the result of (i) to the result of (ii); and

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

Example: Continuing with the same example in subparagraph 71(1)(b), insured B 

did not incur any farm expenses during the 2017 policy year due to an 

illness. The insured did incur farm expenses during the 2018 policy year

which is considered the lag year. The insured has the following allowable 

expenses: $110,370 for 2018 (lag year),); $83,500 for 2013; $109,660 for 

2014; $83,500 for 2015; $73,900 for 2016. Insured B’s average expenses 

are $92,186 [($110,370 + $83,500 + $109,660 + $83,500 + $73,900) ÷ 5].

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

period:

(i) determine the allowable expenses for the lag year using the insured’s Schedule 

F or Substitute Schedule F (if applicable) and the Allowable Expenses 

Worksheet;

Note: 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

(ii) sum the allowable expenses for each year in the whole-farm history period;

(iii) add the result of (i) and (ii) to allowable expenses that correspond to the 

allowable revenue determined in subparagraph 71(4); and

(iv) divide the result of (iv) by five (rounded to the nearest whole dollar).
November 2018 FCIC -18160 52

72 Expenses (Continued)

Example: Continuing with the same example in subparagraph 71(1)(c), insured C is 

a BFR with three years of tax records for 2015-2017. The insured also has 

farm expenses for the 2018 policy year which is considered the lag year. 

The insured has the following allowable expenses: $109,660 for 2018 (lag 

year); $83,500 for the corresponding expenses to the lowest allowable 

revenue from above is $83,500 (2015); $83,500 for 2015; $73,900 for 

2016; and $110,370 for 2017. Insured C’s average expenses are $92,186 

[($109,660 + $83,500 + $83,500 + $73,900 + $110,370) ÷ 5].

(2) Indexed average expenses must be calculated and used in determining the whole-farm 

historic average expenses if the insured chooses to use the revenue trend factor. Refer to

subparagraph 71(2) to determine if the person qualifies for indexed average revenue.

The following table provides the steps for calculating indexed average expenses.

Step Action

1 Divide the allowable expenses for each tax year in the whole-farm history period 

by the allowable expenses 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. For WFRP purposes, the result is 

capped at 1.200 and floored at 0.800.

Example: Insured A has the following allowable expenses: $83,500 for 2013; 

$109,660 for 2014; $83,500 for 2015; $73,900 for 2016; and 

$110,370 for 2017. The following is the result of the first step in the 

indexed average expenses calculation by year.

2014 = 1.313 ($109,660 ÷ $83,500) (capped at 1.200)

2015 = 0.761 ($83,500 ÷ $109,660) (cupped at .800)

2016 = 0.885 ($73,900 ÷ $83,500) 

2017 = 1.494 ($110,370 ÷ $73,900) (capped at 1.200)

2 Sum the results for each year obtained in step 1, then divide the total by four. 

Round result to three decimal places. For WFRP purposes, the result is floored 

at 1.000.

Example: Continuing the example in step 1, the result of the second step in the 

indexed average expenses calculation is 1.021 [(1.200 + 0.800 + 

0.885 + 1.200) ÷ 4].

3 Raise the result of step 2 to the fourth power to obtain the expense trend factor.

Round result to three decimal places, not to exceed the revenue trend factor.

Example: Continuing the example in step 1, the result of the third step in the 

indexed average expenses calculation is 1.087 (1.021 x 1.021 x 

1.021 x 1.021).

4 Multiply the expense trend factor calculated in step 3 by the average expenses. 

Round result to nearest whole dollar. The result is the indexed average expenses.

Example: Continuing the example in step 1, Insured A’s indexed average 

expenses is $100,206 (1.087 x $92,186). Refer to subparagraph (1) 

for determining average expenses of $92,186.
November 2018 FCIC -18160 53

72 Expenses (Continued)

(3) If the insured’s whole-farm historic average revenue is equal to their expanding operation 

adjusted revenue, their whole-farm average expenses will be calculated by multiplying their 

average allowable expenses by the expanding operation factor determined in subparagraph 

71(3)(d).

(4) The whole-farm historic average expenses are determined on the Whole-Farm History 

Report and are the expenses that correspond to the whole-farm historic average revenue. 

Refer to subparagraph 71(6) for determining whole-farm historic average revenue.

(5) The approved expenses are based on the determination of the approved revenue.

The following table provides how to determine approved expenses.

IF the approved 

revenue is ...

THEN the approved expenses are ....

equal to the total 

expected revenue

calculated by dividing the total expected revenue by the 

average allowable revenue and rounded to three decimal 

places and multiplying the result by the average allowable 

expenses. Round result to the nearest whole dollar.

Example: Insured A qualified and chose to use the indexed 

average revenue and has total expected revenue 

of $161,750, average allowable revenue of 

$138,392, and average allowable expenses of 

$92,186. Insured A’s approved expenses are 

$107,765:

$161,750 ÷ $138,392 = 1.169 

1.169 x $92,186 = $107,765 

equal to the whole-farm 

historic average revenue

the whole-farm historic average expenses determined on the 

Whole-Farm History Report.

73 Inventory

(1) 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, 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 are recorded on the Inventory Report and valued in 

accordance with exhibits 7 and 17.

(2) 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;
November 2018 FCIC -18160 54

73 Inventory (Continued)

(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 revenue-to-count when there is loss claimed.

Important: Refer to paragraph 106 for revenue-to-count calculation.

(3) 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.

(4) 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 

revenue-to-count at claim time.

(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 4. 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:

(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
November 2018 FCIC -18160 55

73 Inventory (Continued)

(d) complete and accurate count of nursery commodities.

(8) 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) 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.

74 Accounts Receivable, Payable, and Prepaid Expenses Report

The Accounts Receivable, Payable, and Prepaid Expenses 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) The Beginning Accounts Receivable, Payable, and Prepaid Expenses 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.

(2) The Ending Accounts Receivable, Payable, and Prepaid Expenses Report will be valued on

the last day of the insurance period and submitted by the earlier of:
November 2018 FCIC -18160 56

74 Accounts Receivable, Payable, and Prepaid Expenses Report (Continued)

(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.

(3) 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, Payable, and Prepaid Expenses 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, Payable, and Prepaid Expenses 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, Payable, and Prepaid Expenses 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: 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.

If any accounts receivable were previously written off as uncollectable and are not included 

in the beginning Accounts Receivable, Payable, and Prepaid Expenses 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.
November 2018 FCIC -18160 57

74 Accounts Receivable, Payable, and Prepaid Expenses Report (Continued)

(4) Accounts payable for the insured farm are reported in Part 3 of the Accounts Receivable, 

Payable, and Prepaid Expenses Report to count for expenses incurred but that are not yet 

showing up on the farm tax forms. The Accounts Receivable, Payable, and Prepaid 

Expenses Report is used to add expenses incurred prior to the insurance period to the 

Approved Expenses in the history period. It will also be used to add expenses incurred 

during the year but not yet paid for and not showing up on the farm tax forms to the 

approved expenses for the insurance period. This is important because if substantial 

expenses are not yet paid for, which can happen for tax purposes, the insurance period 

expenses could be below 70 percent of the approved expenses, which would result in a 

reduction of insured revenue.

Example: Insured A has accounts payable for fertilizer each year. The fertilizer cost that 

was due should be added to the expenses on the Allowable Expense Worksheet 

for the current policy year.

Insured A purchased 100 bags of fertilizer for production for the insurance 

period but had not paid for it. The Ending Accounts Receivable, Payable, and 

Prepaid Expenses Report will show the amount to be paid for the fertilizer. This 

amount will be added to the Allowable Expense Worksheet for the insurance 

period before calculating the expense reduction factor.

The AIP must not accept any accounts payable amount if the amount reported for WFRP 

purposes cannot be verified through the use of verifiable records and/or direct marketing 

sales records.

(5) For purposes of accounts payable, when an insured has declared bankruptcy and the 

expenses;

(i) are not paid because of the bankruptcy declaration, include the unpaid expenses in 

accounts payable for claims purposes; or

(ii) have been discharged by a court, do not include the unpaid expenses in accounts 

payable.

75-90 (Reserved)
November 2018 FCIC -18160 58

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 changes due to a reduction of irrigation water 

supply that are known, or should be known, at the time the Intended Farm 

Operation Report is submitted. For example, farm operations experiencing a 

reduction or lack of irrigation water that is known or apparent prior to when the 

Intended Farm Operation Report 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 Intended Farm Operation Report.

92 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.
November 2018 FCIC -18160 59

92 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.

(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.

(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.

(14) Failure to obtain a price for any commodity that is reflective of the local market value.
November 2018 FCIC -18160 60

92 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.

Uninsurable losses will be valued and added to the revenue-to-count, which will decrease any 

loss payments. Revenue-to-count 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 revenue-to-count 

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.

93 Quality Determinations

When the commodity is damaged 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.

94 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.

(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 that 

he/she is 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, etc.).
November 2018 FCIC -18160 61

94 Duties in the Event of Damage or Loss (Continued)

A. Insured’s Duties in the Event of Damage or Loss (continued)

(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.

(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 revenue-to-count if the commodity is not harvested.

(7) If the insured fails to comply with any of the notice requirements of the WFRP 

policy:
November 2018 FCIC -18160 62

94 Duties in the Event of Damage or Loss (Continued)

A. Insured’s Duties in the Event of Damage or Loss (continued)

(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 revenue-to-count, 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.

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 Whole-Farm History 

Report, Farm Operation Report, Beginning and Ending Inventory, Allowable 

Revenue and Allowable Expenses Worksheets, Beginning and Ending Accounts 

Receivable and Beginning and Ending Accounts Payable, 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 to calculate the allowable revenue and 

allowable expenses 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 the insured filed the claim for indemnity when commodities produced during the 

insurance period are still in storage.
November 2018 FCIC -18160 63

95 Replant Payment

(1) To qualify for a replant payment:

(a) The damaged commodity must be an annual plant;

(b) The insured commodity must be damaged by an insurable cause;

(c) The AIP must determine that it is practical to replant, and give consent to replant;

(d) 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.

Example 1: 50 acres of spring bell peppers and 50 acres of fall bell peppers are 

reported on the Intended Farm Operation Report 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.

(e) The insured must submit verifiable records that show their actual cost of replanting; 

and

(f) The AIP may inspect the acreage prior to making the replant payment.

(2) 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; 
November 2018 FCIC -18160 64

95 Replant Payment (Continued)

(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; or

(d) until a Revised Farm Operation Report is submitted.

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 

Revised Farm Operation Report (column 14E/14A) multiplied by the coverage level.

Determine the amount of a replant payment shown in the following example. Show all 

calculations in the Narrative section of the Claim for Indemnity Form or on a Special Report.

Example: 50 acres of commodity replanted

Expected Revenue per acre guarantee = $750 (column 12 of the Farm Operation Report)

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 x 20%) x 85%

The lesser of $75.00 or $127.50 is $75.00.

Replant Payment = $3,750 ($75.00 x 50 acres) x 1.000 (share)

Enter the replant calculations in the “Narrative” of the Replant Payment Worksheet.

96-100 (Reserved)
November 2018 FCIC -18160 65

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 B and the Claims for Indemnity Form for adjustments for inventory 

and accounts receivable.

B. 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, Payable, and Prepaid 

Expenses 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.
November 2018 FCIC -18160 66

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.

C. 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: 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).

COMMODITY 

NAME

Beginning 

Inventory

Value Value Received Ending 

Inventory

Value Net Value

Commodity B 6000 units $1.00/unit. $6,000 1000 units $1.00/unit $1,000

Commodity A 500 units $2.00/unit $1,000

Total Beginning Value $6,000 Total Ending Value $2,000

Inventory Adjustment: Total Ending Value ($2,000) – Total Beginning Value ($6,000) = -$4,000
November 2018 FCIC -18160 67

102 Adjustments to Expenses

A. Accrual Adjustments to Expenses

An insured’s allowable expenses for the policy year will be determined from their IRS tax 

form(s) for the policy year. However, an insured using a cash accounting method will have 

their allowable expenses adjusted using accrual accounting methods when:

(1) the insured prepays expenses and supplies to a greater extent than they historically did 

in the whole-farm history period in order to increase their expense factor; or

(2) losses in the insurance period prevent insured from prepaying for expenses and 

supplies to the extent they did historically in the whole-farm history period.

Beginning and ending balances of prepaid expenses and accounts payable are required to 

make accrual adjustments to expenses.

B. Adjustments for Changes in Prepaid Expenses

Prepaid allowable expenses are expenses for supplies purchased in the current year for use 

in the production of commodities in future years. Such expenses are reported to IRS as an 

expense in the year purchased. Because they are prepaid, the expense is valued at the cost 

paid. The supplies may be held on the insured’s farm(s) or held with the seller.

Example: Insured A purchases fertilizer in the current year that will be used in the 

production of commodities in the subsequent year. The cost of the fertilizer is a 

prepaid expense. Insured A may have the fertilizer on his farm or it may be 

held by the seller.

Subtract the ending balance of prepaid expenses from the beginning balance to calculate 

the amount to add or subtract from the insured’s cash basis expenses. If the result of 

subtracting the ending balance of prepaid expenses from the beginning balance is:

(1) positive, insured’s cash basis expenses will be decreased by the calculated amount;

(2) negative, insured’s cash basis expenses will be increased by the calculated amount.

Refer to subparagraph D for an example.

C. Adjustments for Changes in Accounts Payable

Subtract the beginning balance of the accounts payable from the ending balance to 

calculate the amount to add or subtract from the insured’s expenses. If the result of 

subtracting the beginning balance of operating accounts payable from the ending balance 

is:

(1) positive, insured’s cash basis expenses will be increased by the calculated amount;

(2) negative, insured’s cash basis expenses will be decreased by the calculated amount.

Accounts payable for allowable expenses will be valued at actual amount owed.

Refer to subparagraph D for an example.
November 2018 FCIC -18160 68

102 Adjustments to Expenses (Continued)

D. Example of Accrual Adjustments to Expenses for Income Taxes Filed on a Cash Basis

The following is an example of the calculations and accrual adjustments to expenses when 

allowed according to subparagraph A.

Insured A reports a loss and the following information:

Total allowable expenses for the insurance period: $100,000

Beginning prepaid expenses: $9,000

Ending prepaid expenses: $8,000

Beginning Accounts Payable: $5,000

Ending Accounts Payable: $6,500

The AIP calculates the amount of adjustment to the insured’s cash basis expense amount 

according to the following table.

Beginning Value Ending Value Adjustment Amount

Prepaid Expenses $9,000 $8,000 $1,000 ($9,000 - $8,000)

Accounts Payable $5,000 $6,500 $1,500 ($6,500 - $5,000)

Total $2, 500

The AIP adjusts Insured A’s allowable expenses for the insurance period to an accrual basis 

allowable expenses of $102,500 ($100,000 + $2,500).

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 

Revised Farm Operation Report and the Claim for Indemnity Form when a claim is filed.

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 Farm 

Operation Report.

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:
November 2018 FCIC -18160 69

103 Changes Occurring Within Policy Year (Continued)

A. Effect of Changes (continued)

(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;

(4) change in the share of the commodity(s) by the insured; and

B. Farm Operation Report Revisions

The AIP must correct the approved revenue and indemnity, when applicable, if the Revised 

Farm Operation Report requires revision and the total expected revenue changes. The 

expenses must also be recalculated, and the premium adjusted to reflect the revised 

approved revenue and expenses.

The AIP may deny liability if the information used to determine approved revenue is 

determined to be incorrect.

C. Determining the Expense Reduction Factor and Approved Revenue Adjusted for 

Expenses Not Incurred

Approved revenue must be adjusted using the expense reduction factor, when the allowable 

expenses for the policy year decreases by more than 30 percent compared to the approved 

expenses. Refer to subparagraph 72(5) for determining approved expenses. This 

adjustment, if applicable, is made when a claim is filed.

The approved revenue adjusted for expenses not incurred amount is for claims purposes 

and does not change the approved revenue amount used to determine premium. Reasons 

for decreases in allowable expenses for the policy year include, but are not limited to:

(1) intended commodities were prevented from planting by insurable causes, and 

replacement commodities requiring lower expenses were planted;

(2) the insured elects not to harvest an insured commodity because the expense of harvest 

exceeded the value of the commodity; and
November 2018 FCIC -18160 70

103 Changes Occurring Within Policy Year (Continued)

C. Determining the Expense Reduction Factor and Approved Revenue Adjusted for 

Expenses Not Incurred (continued)

(3) commodities damaged early in the growing season may have required less 

management practices.

The following table provides steps to determine the expense reduction factor and approved 

revenue adjusted for expenses not incurred.

Step Action

1 Divide the allowable expenses for the policy year by the approved expenses. Round result to 

three decimal places.

Example: Insured A’s approved expenses are $100,000 with approved revenue of $130,000. 

Insured A reports allowable expenses of $68,000 for the policy year. The result 

of step one for Insured A is 0.680 ($68,000 ÷ $100,000).

2 If the result of step one is:

(1) less than 0.700, go to step three; or

(2) 0.700 or greater, stop - no reduction in approved revenue is required.

3 Subtract the result of step one from 0.700

Example: Continuing example from step one, 0.020 (0.700 - 0.680) 

4 Determine the expense reduction factor by subtracting the result of step three from 1.000.

Example: Continuing example from step one, the expense reduction factor is 0.980 (1.000 –

0.020).

5 Determine the approved revenue adjusted for expenses not incurred amount by multiplying 

the approved revenue by the expense reduction factor (result of step four). Round to the 

nearest whole dollar.

Example: Continuing example from step one, Insured A’s approved revenue is $127,400 

($130,000 x 0.980).

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 Farm 

Operation Report for the current policy year 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.
November 2018 FCIC -18160 71

105 Damage and Price Fluctuation That Occurred in the Year Prior to the Policy Year (Cont.)

B. 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 Intended 

Farm Operation Report 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: Producer A’s perennial crop suffered ice damage during the winter of 2018 that 

will cause a loss of revenue from the crop in 2019. The damage did not affect 

2018 revenue. Producer A was insured under WFRP for 2018, will continue 

coverage in 2019, 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 2019 Farm Operation Report. However, 

beginning with the 2020 policy year, any loss of revenue from the ice damage 

that occurred in 2018 will not be covered. The expected revenue reported for 

the perennial crop in 2020 and subsequent policy years must not include any 

amount that was lost because of the 2018 ice damage.

106 Revenue-to-Count

Revenue-to-count 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.

The following table provides the steps for calculating revenue-to-count.

Step Action Applicable Procedure 

Reference

1 Determine insured’s allowable revenue for the policy year. Paragraph 44

2 Adjust the allowable revenue determined in step one, if 

applicable.

Paragraph 103

3 Adjust the allowable revenue determined in step two by 

adding or subtracting, as applicable, required adjustments for 

accounts receivable.

Subparagraph 101B

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.

Subparagraph 101C
November 2018 FCIC -18160 72

106 Revenue-to-Count (Continued)

Step Action Applicable Procedure 

Reference

5 Adjust the allowable revenue determined in step four by 

adding or subtracting, as applicable, required adjustments on 

the Market Animals and Nursery Inventory Report for 

commodities held to realize a gain.

Paragraphs 143 and 144 for 

animals and nursery 

commodities

6 Add all values assigned for uninsured causes of loss to the 

allowable revenue determined in step five.

Paragraph 44

7 Add the value assigned to abandoned acreage/commodities 

to the allowable revenue determined in step six.

Paragraph 44

8 Add any net gain from commodity hedging and speculation, 

not less than zero, to the allowable revenue determined in 

step seven.

Paragraph 44

9 Add the total of any indemnity received from an insurance

policy covering insured commodities authorized under the 

Act and any other Federal program payments to the 

allowable revenue determined in step eight.

Exceptions: Do not include:

1. ARC/PLC payments;

2. NAP payments;

3. Replant payments; or

4. 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.

Paragraph 44

10 Add any indemnities from insurance policies not authorized 

under the Act that exceed the deductible (adjusted for 

expenses, if applicable). 

Paragraph 123

107 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.
November 2018 FCIC -18160 73

107 Indemnities (Continued)

A. Claim for Indemnity (continued)

Reminder: The AIP may defer, at their discretion, the final claim adjustment up to 180 

days from the date the insured filed the claim for indemnity when

commodities produced during the insurance period are still in storage.

(2) 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) 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;

(ii) 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

(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, approved expenses, 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 revenue-tocount for the applicable policy year.

Changes made to filed Federal tax returns include changes made because of amended 

returns or IRS audits.
November 2018 FCIC -18160 74

107 Indemnities (Continued)

C. 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, accounts receivable, and 

accounts payable will be to remove production and expenses from previous years and to 

count production and expenses for the insured year.

D. Settlement of Claim

A claim cannot be settled until:

(1) the insured’s Federal taxes for the policy year are filed;

(2) any indemnities are received, if applicable, from all other Federally reinsured policies 

covering commodities insured under WFRP.

(3) the AIP determines if the insured has received a NAP payment from any crop insured 

under the WFRP policy. Refer to paragraph 124.

E. Calculating Indemnity

An indemnity is earned when the revenue-to-count for the policy year is less than the 

insured revenue and losses are due to insurable causes of loss.

Important: The approved revenue amount may require an expense reduction adjustment 

when a claim for indemnity is completed.

The following table provides the steps for calculating an indemnity. Refer to exhibit 16 for 

the Claim for Indemnity Form.

Step Action Applicable 

Procedure 

Reference

Calculate Insured Revenue for the Policy Year:

1 Determine the insured’s allowable expenses for the policy 

year on the Allowable Expense Worksheet using the farm 

tax forms from the policy year. Enter this number on the 

Claim for Indemnity Form

Paragraphs 45 and 

102

2 Transfer Approved Expenses from the Farm Operation 

report to the Claim for Indemnity Form

Subparagraphs

72(5)

3 Calculate any expense reduction Subparagraph 

103C

4 Multiply the insured’s approved revenue, as adjusted in step 

3 if applicable, by the insured’s coverage level to calculate 

the Insured Revenue for the year.

Refer to paragraph 

42 for available 

coverage levels 
November 2018 FCIC -18160 75

107 Indemnities (Continued)

E. Calculating Indemnity (continued)

Step Action Applicable 

Procedure 

Reference

Calculate Revenue Loss for the Policy year

5 Determine the amount of indemnities from insurance

policies not authorized by the Act that exceed the 

deductible.

Paragraph 123

6 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.

Paragraph 44

7 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 (5) depending upon the sign. 

Exhibits 7-9

8 Subtract the insured’s revenue-to-count from step 6 from 

the insured revenue to determine the Revenue Loss which 

is the indemnity to be paid.

Refer to paragraph 

106 to determine 

revenue to count.

108-120 (Reserved)
November 2018 FCIC -18160 76

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

CIH 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 Revised Farm Operation 

Report is submitted, coverage will not be transferred, and the insured will still be required to pay 

the premium due.

123 Other Insurance

(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 revenue-to-count.

(3) Insureds may obtain other insurance not authorized under the Act on commodities insured 

under WFRP. Any indemnities the insured receives from such insurance policies will not 

be considered revenue-to-count under the WFRP policy unless the total of all such 

indemnities exceeds the insured’s deductible (adjusted for expenses, if applicable). If the 

total of all such indemnities exceed the insured’s deductible, determine the amount to 

include as revenue to count as follows:

(a) Sum all indemnities received by the insured from insurance policies not authorized 

under the Act for damage to commodities insured under the WFRP policy;

(b) Multiply the insured’s deductible by the expense reduction factor to adjust for 

expenses not incurred;

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

Example: The insured’s WFRP deductible is $32,500 with an expense reduction factor of 0.980. 

The insured received an indemnity from two policies not authorized under the Act, 

$30,000 and $5,000. $35,000 Total indemnities ($30,000 + $5,000)

-$31,850 Deductible adjusted for expenses ($32,500 x 0.980)

$3,150 Revenue to count
November 2018 FCIC -18160 77

124 Noninsured Crop Disaster Assistance Program

(1) A person can purchase both WFRP coverage and coverage under NAP on the same 

commodity in the same year. The statute authorizing NAP states that if the producer is 

eligible to receive benefits under NAP and from any other USDA program for the same 

loss, the producer: (1) Cannot receive benefits from both programs; and (2) Must elect 

which benefit they wish to receive.

(2) If the insured has received a NAP payment, the insured must choose whether to accept the 

NAP payment or the WFRP indemnity.

(a) If the insured chooses to accept the NAP payment, no WFRP indemnity can be paid. 

The insured and the AIP must complete a Withdrawal of Claim form.

(b) If the insured chooses to accept the WFRP indemnity, the insured must repay the 

NAP payment. A form from FSA certifying the NAP payment has been repaid must 

be provided to the AIP before the claim can be settled.

125 Commodities as Payment

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

126 Mediation, Arbitration, and Judicial Reviews of AIP Determinations

The procedures in the CIH apply for:

(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.

127 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) 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.

128-140 (Reserved)
November 2018 FCIC -18160 78

PART 6 SPECIAL CIRCUMSTANCES

141 Organically Grown Commodities

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 Farm Operation Report and identified with the “Method 

of Establishment” code for transitional organic acreage.

B. Expected Values

Organic prices can be used as expected values for certified organic animals, animal 

products, and acreage only; organic prices does not apply to transitional or buffer zone 

acreage. Insureds that have an organic certificate from a certifying agent are eligible to 

receive an organic price for their commodities grown on certified organic acreage.

Organic prices can be used if:

(1) insured has an organic certificate 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 Revised Farm Operation Reporting 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 the current certificate; 

(2) the operator or tenant has an organic certificate.

Exception: 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.

Example: Insured A was issued an organic certificate in 2018 that lists corn, oats, 

and wheat. Insured A reports he/she intends to plant canola and flax on 

the certified organic acreage in 2019. The organic plan has not been 

updated for 2019 to include canola or flax, and the mentioned crops are 

not listed on the 2018 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 Farm Operation Report 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.
November 2018 FCIC -18160 79

141 Organically Grown Commodities (Continued)

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.

E. Change in Farm’s Organic Certification

If any acreage qualifies as certified organic on the date the Revised Farm Operation Report 

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.

F. 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. 

G. Documentation Required

The insured is required to provide the AIP with a copy of the organic certificate by the 

Revised Farm Operation Report 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.
November 2018 FCIC -18160 80

141 Organically Grown Commodities (Continued)

G. Documentation Required (continued)

Copies of the producer’s written organic certificate must be valid at the time a loss claim is 

submitted, and organic prices were used. If the insured does not have a valid certificate at 

claim time, the insured revenue will be recalculated without the 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 and 

allowable expenses. Added value from post-production operations is also not insurable under the 

WFRP policy and must be removed from allowable revenue and allowable expenses.

(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) sorting, grading, washing, waxing, labelling, trimming; 

(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

(b) 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.

(2) 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 (Refer to example in paragraph 45);
November 2018 FCIC -18160 81

142 Post-Production Operations and Market Readiness (Continued)

(b) be performed:

(i) in the field or

(ii) on land within a reasonable proximity to the field; and

(c) 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: Insured A reported $1,200,000 gross revenue for the 2017 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).

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

Refer to paragraph 21 for eligibility of farm operations that produce animals and animal 

products. Animals and Animal Product commodity codes are listed in the AD as animals 

and animal products.

B. 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.

***

C. 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.
November 2018 FCIC -18160 82

143 Animals (Continued)

D. Expected Revenue from Animals and Animal Products

Expected revenue must be adjusted by removing the cost or basis of the animals purchased 

for resale from the amount of expected revenue on the Farm Operation Report. The Market 

Animal and Nursery Inventory Report is used to document these numbers for the Intended 

Farm Operation Report.

E. 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) 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 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.

F. 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 Farm Operation Report 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 revenue-to-count.
November 2018 FCIC -18160 83

143 Animals (Continued)

G. Capping Animal and Animal Product Revenue at Revised Farm Operation Report 

Time

Eligibility requirements at SCD limit expected revenue from animals and animal products 

to $1 million. However, changes may occur during the policy year that result in the farm 

being over the limit when the Revised Farm Operation Report is completed. To determine 

if an insured has more than the allowed amount of animal and animal product revenue:

(1) Total the expected revenue on the Revised Farm Operation Report for all animals and 

animal products.

(2) If the result of (1) is greater than $1 million then:

(a) subtract the $1 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;

(d) multiply the result of (2)(c) by the expected revenue of each animal commodity 

and/or animal product shown on the Revised Farm Operation Report.

The result will be the capped amount. The total may not necessarily equal $1 million 

due to rounding.

Example: Revenue from animals and animal products exceeds the $1,000,000 

maximum:

Total Expected Revenue is $3,000,000. Maximum $1,000,000 limit on 

animals & animal products.

Cattle $350,000

Hogs $375,000

Sheep $115,000

Poultry $200,000

Total $1,040,000 ($40,000 over the $1,000,000 limit)

$40,000 ÷ $1,040,000 = 0.038462

1.000 - 0.038462 = 0.961538

Cattle $350,000 X 0.961538 = $336,538

Hogs $375,000 X 0.961538 = $360,577

Sheep $115,000 X 0.961538 = $110,577

Poultry $200,000 X 0.961538 = $192,308

Total $1,000,000
November 2018 FCIC -18160 84

143 Animals (Continued)

G. Capping Animal and Animal Product Revenue at Revised Farm Operation Report 

Time (continued)

Only the Total Expected Revenue of each commodity on the Revised Farm Operation 

Report will be changed. However, all allowable revenue produced from the animals and 

animal products will count as revenue to count

***

144 Nursery/Greenhouse

A. Eligibility

Refer to paragraph 21 for eligibility of farm operations with nursery/greenhouse operations. 

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.

B. 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 Farm Operation Report.

C. 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 Farm Operation 

Report. The Market Animal and Nursery Inventory Report is used to document these 

numbers for the Intended Farm Operation Report.

D. 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 plants purchased during the insurance period.

(1) 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.
November 2018 FCIC -18160 85

144 Nursery (Continued)

D. Inventory Adjustments to Revenue (continued)

(2) 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.

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).

E. 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 he is going to hold in inventory for two years. He is 

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 x 

$2.00) must be reported as revenue for WFRP purposes for that insurance 

period.

F. Capping Nursery/Greenhouse Revenue at Revised Farm Operation Report Time

Eligibility requirements at SCD limit expected revenue from nursery/greenhouse intended 

commodities to $1 million. However, changes may occur during the policy year that result 

in the farm being over the limits when the Revised Farm Operation Report is completed. 

To determine if an insured has more than the allowed amount of nursery/greenhouse 

revenue:

(1) Total the expected revenue on the Revised Farm Operation Report for all 

nursery/greenhouse commodities.

(2) If the result of (1) is greater than $1 million then:

(a) subtract the $1 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;

(d) multiply the result of (2)(c) by the expected revenue of each nursery/greenhouse 

commodity shown on the Revised Farm Operation Report.

The result will be the capped amount. The total may not necessarily equal $1 million 

above due to rounding.
November 2018 FCIC -18160 86

144 Nursery (Continued)

F. Capping Nursery/Greenhouse Revenue at Revised Farm Operation Report Time 

(continued)

Example: Revenue from Nursery/Greenhouse commodities exceeds the $1,000,000 

maximum:

Total Expected Revenue is $3,000,000. Maximum $1,000,000 limit on 

Nursery/Greenhouse commodities.

Plant 1 $350,000

Plant 2 $375,000

Plant 3 $115,000

Plant 4 $200,000

Total $1,040,000 ($40,000 over the $1,000,000 limit)

$40,000 ÷ $1,040,000 = 0.038462

1.000 - 0.038462 = 0.961538

Plant 1 $350,000 X 0.961538 = $336,538

Plant 2 $375,000 X 0.961538 = $360,577

Plant 3 $115,000 X 0.961538 = $110,577

Plant 4 $200,000 X 0.961538 = $192,308

Total $1,000,000

Only the Total Expected Revenue of each commodity on the Revised Farm Operation 

Report will be changed. However, all allowable revenue produced from the 

Nursery/Greenhouse commodities will count as revenue-to-count.

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 9.

145 Commodities with Market Order Reserves

The applicant/insured must provide information for commodities on the Farm Operation Report 

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 Farm Operation Report for the commodity.
November 2018 FCIC -18160 87

146 Commodities Sold with Co-op Retainages

A. Supplemental Information

The applicant/insured must provide information for insured commodities on the Farm 

Operation Report 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 revenue-to-count 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-operatives payment schedule for the 

commodity.

Example: Commodity A production is delivered to the co-operative in the 2016 crop 

year. The co-operative makes cash payments to the producer weekly for the 

remainder of the 2016 crop year then, following the payment schedule for 

commodity A, makes four cash payments in 2017 crop year, four payments in 

2018 crop year, and a final cash payment in 2019 crop year.

C. Allocations

Allocations are distributed annually on the co-operative’s tax-year basis, according to the 

co-operative’s schedule.

Example: 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.
November 2018 FCIC -18160 88

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 

co-operative'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.

D. 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.
November 2018 FCIC -18160 89

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 2018 policy year, and markets grapes 

through ABC Co-operative, which distributes proceeds from the grapes in cash 

and allocations. In 2018, insured A received $12,115 cash payments and 

$10,200 in Allocation Credits and Permanent Equity Capital Credits for the 

2017 policy year. Insured A reported the total $22,315 to IRS in 2018.

Insured A’s total projected earnings for grapes were $48,271 in 2018. Insured 

A received $21,773 in “cash advance” payments in 2018, and reported the 

$21,773to IRS in 2018. 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.

Commodity Name Name of Buyer Beginning Amount Ending Amount Balance

Grapes ABC Co-operative $12,115 (Cash) $0 -$12,115

Grapes ABC Co-operative $10,200 (Allocations) $0 -$10,200

Grapes ABC Co-operative 0 $26,498 $26,498

Total Accounts Receivable Adjustments to 

Claim

$4,183

147 Vertically Integrated Operations

Vertically integrated operations are operations where all stages of production of a crop, from the

buying and selling or use of the final product are controlled by the same operation or by different 

operations that are related. Vertically integrated operations have transactions, including financial 

transactions, between different divisions of the operation or between the different related 

operations.

The integrated relationship between the divisions or related operations 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, allowable expenses, 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.

Example: 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. Different divisions and related operations 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, allowable expenses, and post-production operation costs for insured A.
November 2018 FCIC -18160 90

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 Revised 

Farm Operation Report is submitted.

(2) If the expected revenue from commodities purchased for resale reported on the Revised 

Farm Operation Report 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 revenue-to-count. 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 Revised Farm Operation Report 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;

(iv) multiply the result of (iii) by the expected revenue of each commodity 

purchased for resale shown on the Revised Farm Operation Report.

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
November 2018 FCIC -18160 91

148 Commodities Purchased for Resale (Continued)

Expected revenue from commodities produced on the farm operation is 

$85,000.

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 x 0.850000 = $42,500

Wheat (PFR) $25,000 x 0.850000 = $21,250

Hay (PFR) $25,000 x 0.850000 = $21,250

Total $85,000

Only the Total Expected Revenue of each commodity on the Revised Farm Operation 

Report will be changed. However, all allowable revenue produced from the commodities 

purchased for resale will count as revenue to count.
November 2018 FCIC -18160 92

Exhibit 1

Acronyms and Abbreviations

The following table provides the acronyms and abbreviations used in this handbook.

Approved 

Acronym/Abbreviation

Term

Act Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et. seq.)

AD Actuarial Documents

AIP Approved Insurance Provider

AMS Agricultural Marketing Service

ARC Agricultural Risk Coverage

BFR Beginning Farmer or Rancher

CCD Contract Change Date

CFR Code of Federal Regulations

CIH Crop Insurance Handbook

ERS Economic Research Service

FCIC Federal Crop Insurance Corporation

FSA Farm Service Agency

GFP Good Farming Practice

IRS Internal Revenue Service

NAP Noninsured Disaster Assistance Program

NASS National Agricultural Statistics Service

PAIR Pre-Acceptance Inspection Report

PASD Product Administration and Standards Division

PAW Pre-Acceptance Worksheet

PFR Purchase for Resale

PHTS Policy Holder Tracking System

PLC Price Loss Coverage

RMA Risk Management Agency

RRD Revised Reporting Date

SBI Substantial Beneficial Interest

SCD Sales Closing Date

SP Special Provisions of Insurance

SSN Social Security Number

U.S.C. United States Code

USDA United States Department of Agriculture

WFHR Whole-Farm History Report

WFRP Whole-Farm Revenue Protection
November 2018 FCIC -18160 93

Exhibit 2

Definitions

Abandon means 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 means 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 means 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 mean 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 expenses means farm expenses, specified by the WFRP policy and adjusted as applicable, 

that are incurred in the production of commodities on the applicant’s/insured’s farm and reported to 

the IRS on farm tax records.

Allowable revenue means 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, 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 mean 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, aquaculture 

species, bees, and fur bearing animals. For the purposes of WFRP, animals must be propagated or 

reared in a controlled environment.

Animal products means any commodity derived from a live animal, excluding commodities that are also 

animals. Examples include milk, eggs, and wool but not live calves or package bees.

Application means the form required to be completed by the applicant/insured and accepted by the

AIP before insurance coverage will begin.

Approved expenses means amount of allowable expenses the applicant’s/insured’s farm operation is 

expected to incur during the insurance period, as approved by the AIP.

Approved revenue means 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.

Assignment of indemnity means 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.
November 2018 FCIC -18160 94

Exhibit 2

Definitions (Continued)

Average allowable expenses mean the simple average of the allowable expenses for all years in the 

applicant’s/insured’s whole-farm history period.

Average allowable revenue means the simple average of the allowable revenue for all years in the 

applicant’s/insured’s whole-farm history period.

Beginning accounts payable means allowable expenses incurred prior to the insurance period and 

supported by verifiable records, but that have not been paid at the beginning of the insurance period.

Beginning accounts receivable means 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 is 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 five 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 postsecondary 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 means 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 means 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 means an insured that files taxes based on the 12 consecutive months 

corresponding to January 1 through December 31.

Cancellation date means 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.

Carryover insured means an insured that was covered under WFRP in the policy year immediately 

prior to the current policy year without respect to insurance provider.

Cash accounting method means 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 (CAT) means the minimum level of coverage offered by FCIC.
November 2018 FCIC -18160 95

Exhibit 2

Definitions (Continued)

Certificate means 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 means 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 means 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 means 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 means 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.

Commodities purchased for resale mean 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 means any agricultural product established or produced by the farm operation, except 

timber, forest, and forest products, animals for sport, show, or pets.

Commodity code is 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.

Commodity count means the number of commodities on the farm operation as determined in section 

19(c) of WFRP policy

Consent means approval in writing by the AIP allowing the insured to take a specific action.

Contemporaneous records mean 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 means the date by which changes to the policy, if any, will be made available.

Contract grower means a person retained under contract to manage the growth of a commodity owned 

by another person.

Controlled Substance is any substance whose manufacture, distribution, or use is federally regulated 

under the Controlled Substance Act.
November 2018 FCIC -18160 96

Exhibit 2

Definitions (Continued)

Cooperative Extension System means a nationwide network consisting of a state office located at each 

state’s land-grant 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 mean any county, parish, political subdivision of a state, or other area specified in the AD.

Damage means injury, deterioration, or loss of production of an insured commodity due to insured or 

uninsured causes.

Days mean calendar days, unless otherwise specified.

Deductible means 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 has the same meaning as the term defined in 7 CFR part 400, subpart U.

Direct marketing means 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 means 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 means 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 means 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.

Diversification discount means 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 19(c) of the 

WFRP Policy.

Early fiscal year filer means an insured that files taxes with a fiscal year that begins prior to September 

1.

End of insurance period, date of means the date upon which insurance coverage ceases for the policy 

year.

Ending accounts payable means allowable expenses incurred during the insurance period and 

supported by verifiable records, but that have not been paid at the end of the insurance period.
November 2018 FCIC -18160 97

Exhibit 2

Definitions (Continued)

Ending accounts receivable means 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 means 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 is a factor that is used to calculate the expanded operation adjusted 

revenue for farm operations that are physically expanding.

Expected revenue means the amount of revenue the applicant/insured expects to receive from a 

commodity as stated on the Farm Operation Report.

Expected value means 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 mean 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.

Expense reduction factor means a factor that is used to reduce the approved revenue for claim 

purposes when allowable expenses for the policy year are less than 70 percent of approved expenses.

Expense trend factor means a factor that is used to measure the year–to-year growth in expenses of the 

insured’s farm operation.

Farm operation means 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 means 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 Farm Operation Report consists of three parts; the Intended Farm Operation Report, Revised Farm 

Operation Report, and Final Farm Operation Report, with each part due at the time specified in the 

WFRP Policy.

Farm premium rate means the premium rate for coverage under this policy calculated based on the 

commodities on the insured’s farm operation.
November 2018 FCIC -18160 98

Exhibit 2

Definitions (Continued)

Farm tax forms means IRS income tax forms 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.

Fiscal year means 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 means 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 means 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 means a domestic establishment including individuals with a familial relationship and 

others who live on the same property

Indexed average expenses means the average allowable expenses adjusted to reflect expense growth 

during the whole-farm history period.

Indexed average revenue means the average allowable revenue adjusted to reflect revenue growth 

during the whole-farm history period.

Insurable interest means the percentage of the commodity that is at financial risk of loss.

Insurance period means the 12-month period corresponding to the producer’s tax year beginning in the 

calendar year in which the SCD occurs.

Insured means 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 means a commodity the insured will produce or purchase for resale during the 

insurance period.

Insured revenue means the total amount of insurance provided to the insured.

Intended commodity is a commodity the insured reported on their Intended Farm Operation Report.

Lag year means the tax year immediately preceding the insurance period.

Late fiscal year filer means an insured with a fiscal year that begins September 1 or later.
November 2018 FCIC -18160 99

Exhibit 2

Definitions (Continued)

Local market price means the average price offered by buyers of the commodity in the area where the 

applicant/insured normally sells that commodity.

Market readiness operations means 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 and allowable expenses 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 is 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 means 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 means 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 – Value of a commodity at the beginning of the insurance period minus the cost of the 

commodity.

Noninsured Crop Disaster Assistance Program is a program administered by FSA which provides 

coverage to producers of crops that do not have a permanent crop insurance program available.

Notice of loss means a written notice the insured is required to file in the agent's office whenever they 

initially discover that allowable revenue for the policy year may be less than insured revenue.

Nursery and greenhouse commodities means 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 means the act of deducting one amount from another amount.

Organic agricultural experts mean 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.
November 2018 FCIC -18160 100

Exhibit 2

Definitions (Continued)

Organic farming practice means 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 means 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 mean 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 means an entity that actually physically produces the commodity.

Pass-through entity means 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 is 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 means 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 means 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 mean 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, jams, jellies, wine, or cider, or costs for cold and controlled 

atmosphere storage.

Prepaid expenses mean the expenses relating to insured commodities that have been paid prior to the 

beginning of the insurance period.

Produced means 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 means physical land or structures used for the production of commodities on the 

insured’s farm operation.

Prohibited substance means 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.
November 2018 FCIC -18160 101

Exhibit 2

Definitions (Continued)

Qualifying revenue threshold is 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 is 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 means the same annual commodity replanted on the same acreage as the first 

insured commodity for harvest in the same insurance period.

Replanting means 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 means a factor that is used to measure the year to year growth in revenue of the 

insured’s farm operation.

Sales closing date means 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 means a tax form commonly used to file Federal taxes for a farm.

Short tax year means 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.

Special Provisions means the part of the policy that contains specific provisions of insurance that may 

vary by geographic area.

Substantial beneficial interest means 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 is 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 means the AIP’s statement to the insured, based upon the Farm Operation 

Report that provides specific information about the insured’s policy including the amount of insurance 

coverage.
November 2018 FCIC -18160 102

Exhibit 2

Definitions (Continued)

Tax entity means any person that has a tax reporting requirement.

Tax filer type means 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 means 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 be the calendar year in which the 12-month period begins.

Total expected revenue means 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 Farm 

Operation Report, including expected revenue from commodities lost to a covered cause of loss.

Transitional acreage means acreage on which organic farming practices are being followed but the 

acreage does not yet qualify to be designated as organic acreage.

Verifiable records mean contemporaneous records provided from a disinterested third party (such as 

records from a warehouse, 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.

Void means the policy is considered not to have existed for a policy year.

Whole-farm historic average revenue and expenses means the historic, average allowable revenue and 

allowable expenses generated from the farm operation, adjusted according to the policy, and stated on

the Whole-Farm History Report.

Whole-farm history period means the five consecutive tax years prior to the lag year.

Whole-Farm History Report means the report that documents the applicant’s/insured’s farm 

operation’s allowable revenue and allowable expenses for each tax year used to determine their wholefarm historic average revenue and expenses, and other information necessary to determine the farm 

operation’s whole-farm historic average revenue and expenses.
November 2018 FCIC -18160 103

Exhibit 3

Method of Establishment

The following table provides methods of establishment, abbreviations, and the numeric code for RMA 

processing.

Method of Establishment Abbreviation Numeric Code

Acre AC 20

Acre – Native Sod AC 19

Acre – Organic AC 21

Acre – Transitional Organic AC 16

Head HEAD 17

Head – Organic HEAD 18

Head – Transitional Organic HEAD 15

Linear Feet LN/FT 96

Linear Feet – Organic LN/FT 97

Linear Feet – Transitional Organic LN/FT 90

Number NUM 95

Number – Organic NUM 93

Number – Transitional Organic NUM 88

Other OTHER 99

Other – Organic OTHER 98

Other – Transitional Organic OTHER 91

Plant PLANT 22

Plant – Organic PLANT 25

Plant – Transitional Organic PLANT 24

Square Feet SQ/FT 23

Square Feet – Organic SQ/FT 26

Square Feet – Transitional Organic SQ/FT 27

Weight WT 94

Weight – Organic WT 92

Weight – Transitional Organic WT 89

***
November 2018 FCIC -18160 104

Exhibit 4

Unit of Measure

The following table provides units of measure, abbreviations, and the numeric code for RMA 

processing.

Unit of Measure Abbreviation Numeric Code

Bag/Sack BG/SK 11

Bale BALE 12

Barrel BBL 10

Bin BIN 24

Box BOX 13

Bushel BU 01

Carton CTN 14

Dozen DOZ 15

Each EACH 97

Flat FLAT 16

Gallon GAL 07

Head HEAD 17

Hive HIVE 18

Hundredweight CWT 03

Lug LUG 19

Nursery/Greenhouse NUG 96

Other OTHER 99

Ounce OZ 05

Package PKG 21

Peck PECK 09

Pint PINT 06

Plant PLANT 22

Pound LB 02

Purchased for Resale PFR 98

Quart QT 08

Square Foot SQ/FT 23

Ton TON 04
November 2018 FCIC -18160 105

Exhibit 5

Form Standards

This exhibit provides form standards:

(1) that are in addition to or in lieu of the standards and elements provided in the DSSH; and

(2) 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 

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.”

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.”

B. Anti-Rebating Certification

Substitute “Policy Year” as a substantive element in place of “Crop Year.”

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.

C. Application, Policy Transfer/Application, and Policy Change

Substitute “Effective Policy Year” as a substantive element in place of “Effective Crop Year.”

(1) 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”

(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”
November 2018 FCIC -18160 106

Exhibit 5

Form Standards (Continued)

C. Application, Policy Transfer/Application, and Policy Change (continued)

(2) The following statement must be within a box above the insured‘s signature line and date.

“I understand that:

(a) my approved revenue and approved expenses 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 Information to be Entered

Applicant’s/Ins

ured’s Name

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). 

Policy Year 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.

State/Code and 

County/Code

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.”

Substitute the required language to provide insurance for policy transfer with the following.
November 2018 FCIC -18160 107

Exhibit 5

Form Standards (Continued)

C. Application, Policy Transfer/Application, and Policy Change (continued)

“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.”

D. Policy Cancellation

Substitute “Effective Policy Year” as a substantive element in place of “Effective Crop Year.”

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.”

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.”

(1) “Name of Crop”

(2) “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

Substitute “Effective Policy Year” as a substantive element in lieu of “Effective Crop Year.”

(1) 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.
November 2018 FCIC -18160 108

Exhibit 5

Form Standards (Continued)

F. Withdrawal of Claim for Indemnity

(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.”

G. Whole-Farm History Report

The AIPs are responsible for developing the Whole-Farm History Report form. The WholeFarm History Report must be titled “WHOLE-FARM HISTORY REPORT”. The AIPs are NOT 

authorized to modify or delete any of the required elements. Refer to exhibit 6 for the WholeFarm History Report required elements and example.

In place of the certification statement in the DSSH, the Whole-Farm History 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 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).”

The Whole-Farm History Report must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.

H. Inventory Report

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 7 for the Inventory Report required elements and example.

In place of the certification statement in DSSH, the Inventory Report must include the following 

certification statement immediately above the applicant/insured signature.
November 2018 FCIC -18160 109

Exhibit 5

Form Standards (Continued)

H. 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).”

The Inventory Report form must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.

I. Accounts Receivable, Payable, and Prepaid Expenses Report

The AIPs are responsible for developing the Accounts Receivable, Payable, and Prepaid 

Expenses Report form. The Accounts Receivable, Payable, and Prepaid Expenses Report must 

be titled “ACCOUNTS RECEIVABLE, PAYABLE, AND PREPAID EXPENSES REPORT.”

The AIPs are not authorized to modify or delete any of the required elements. Refer to exhibit 8 

for the Accounts Receivable, Payable, and Prepaid Expenses Report required elements and 

example.

In place of the certification statement in DSSH, the Accounts Receivable, Payable, and Prepaid 

Expenses 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).”

The Accounts Receivable, Payable, and Prepaid Expenses Report must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.
November 2018 FCIC -18160 110

Exhibit 5

Form Standards (Continued)

J. Market Animal and Nursery Inventory Report

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 9 for the Market 

Animal and Nursery Inventory Report required elements and example.

If applicable, beginning and ending inventories are necessary to determine the revenue to count 

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 Farm Operation 

Report 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 revenue-tocount. 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.

An ending inventory must also be completed if an indemnity is to be claimed. Part 4 calculates 

the revenue to count 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.

If animals are marketed in pounds, gross inventory values will be determined by multiplying the 

number of animals X the average lbs. per animal for the type/category X applicable value/price 

per lb.

For animals sold individually (by the head/animal), inventory values will be measured by

multiplying the number of animals/livestock X the average value/price per animal for the 

type/category.
November 2018 FCIC -18160 111

Exhibit 5

Form Standards (Continued)

J. Market Animal and Nursery Inventory Report (continued)

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.

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).”

The Market Animal and Nursery Inventory Report must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.

K. Farm Operation Report

The AIPs are responsible for developing the Farm Operation Report form. The Farm Operation 

Report must be titled “FARM OPERATION REPORT”. The AIPs are not authorized to modify 

or delete any of the required elements. Refer to exhibit 10 for the Farm Operation Report 

required elements and example.

In place of the certification statement in the DSSH, the Farm Operation Report must include the 

following certification statements 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 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).”
November 2018 FCIC -18160 112

Exhibit 5

Form Standards (Continued)

K. Farm Operation Report (continued)

I understand that obtaining multiple Federal benefits, such as a Noninsured Crop Disaster 

Assistance Program (NAP) payment(s) and a Federal crop insurance indemnity, is prohibited by 

law. I certify that I have or will disclose any other USDA benefit; including any NAP benefit, 

received for this crop. Failure to disclose the receipt of multiple Federal benefits, or failure to 

repay one of the multiple Federal benefits such as either the NAP benefit or the Federal crop 

insurance indemnity for the same crop, may result in my being disqualified from receiving 

Federal crop insurance benefits, as well as being ineligible for various programs administered by 

the Farm Service Agency for up to five (5) years.

The Farm Operation Report must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address. 

L. Replant Payment Worksheet

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.

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).”

The Replant Payment Worksheet form must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.
November 2018 FCIC -18160 113

Exhibit 5

Form Standards (Continued)

M. Substitute Schedule F

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. 

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).”

The Substitutes Schedule F must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address

N. Allowable Expenses Worksheet

The Allowable Expenses Worksheet is a required worksheet the AIPs must use to determine an 

applicant’s/insured’s allowable expenses 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 applicant’s/insured’s tax reported expenses. The 

Allowable Expenses Worksheet must be titled “ALLOWABLE EXPENSES WORKSHEET.” 

Refer to exhibit 14 for the Allowable Expenses Worksheet required elements and example.

In place of the certification statement in DSSH, the Allowable Expenses 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).”
November 2018 FCIC -18160 114

Exhibit 5

Form Standards (Continued)

N. Allowable Expenses Worksheet (continued)

The Allowable Expense Worksheet must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address

O. Allowable Revenue Worksheet

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 15 for the Allowable Revenue 

Worksheet required elements and example.

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).”

The Allowable Revenue Worksheet must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.

P. Claim for Indemnity Report

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 16 for the Claim for 

Indemnity Report required elements and example.

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. 
November 2018 FCIC -18160 115

Exhibit 5

Form Standards (Continued)

P. Claim for Indemnity 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, 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).”

The Claim for Indemnity Report must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.

Q. Expected Value and Yield Source Document Certification Worksheet

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 20 for the Expected Yield and Value Source Document 

Certification Worksheet required elements and example.

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.

“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).”

The Expected Value and Yield Source Document Certification Worksheet must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.
November 2018 FCIC -18160 116

Exhibit 6

Whole-Farm History Report

A. Required Elements Description

The following table provides descriptions of the Whole-Farm History Report form required 

elements.

Item Required Element Description

1. Producer 

Information:

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).

2. Agency 

Information:

Name, address, telephone number and code number of the agent. 

Include policy number for carryover insureds.

3. Policy Year: The current policy year. Includes beginning and ending month of 

fiscal year if applicant/insured filed Federal taxes on fiscal year basis.

4. IRS Accounting 

Method:

IRS accounting method, cash or accrual, used by applicant/insured.

5. State/County: State and county where the majority of the total expected revenue for 

the policy year will be derived.

6. Tax Year The five consecutive tax years prior to the policy year, not including 

the lag year.

7. Allowable Revenue Allowable revenue (item 12 of Allowable Revenue Worksheet) for 

each tax year entered in item 6.

Exceptions:

(1) For a qualifying person with four years of farm tax forms in their 

whole-farm history period enter:

(a) In the first block the allowable revenue that corresponds to 

the lag year; and

(b) In the next four blocks, the allowable revenue that 

corresponds to the tax year entered in item 6.

(2) For a qualifying person with three years of farm tax forms in 

their whole farm history period enter:

(a) In the first block the allowable revenue that is the lowest of 

the three years with farm tax forms and the lag year;

(b) In the second block, the allowable revenue that corresponds 

with the lag year; and

(c) In the next three blocks, the allowable revenue that 

corresponds with the tax years entered in item 6.
November 2018 FCIC -18160 117

Exhibit 6

Whole-Farm History Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

8. Allowable 

Expenses

Allowable expenses (item 14 of Allowable Expenses Worksheet) for 

each tax year entered in item 6.

Exceptions:

(1) For a qualifying person with four years of farm tax forms in their 

whole-farm history period enter:

(a) In the first block, the allowable expenses that corresponds 

to the lag year; and

(b) In the next four blocks, the allowable expenses that 

correspond to the tax year entered in item 6.

(2) For a qualifying person with three years of farm tax forms in 

their whole farm history period enter:

(a) In the first block the allowable expenses that corresponds 

to the allowable revenue of the tax year that is entered in 

item 7;

(b) In the second block, the allowable expenses that 

corresponds with the lag year; and

(c) In the next three blocks, the allowable expenses that correspond 

with the tax years entered in item 6.

9. Total Total allowable revenue and expenses, respectively, for all tax years 

entered in item 6. Sum the allowable revenue and allowable expenses, 

respectively, for all tax years entered in item 6 and enter the result.

10. Average Simple average of the allowable revenue and expenses, respectively, 

for all tax years entered in item 6.

Divide the result of item 9 for allowable revenue and expenses by 

five.

11. Indexed Average

Yes No

Indexed average allowable revenue and expenses, if applicable. If the 

applicant/insured qualifies for indexed average revenue and chooses to 

use the revenue trend factor, enter the indexed average revenue and 

expenses. Refer to paragraph 71 and 72.

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.
November 2018 FCIC -18160 118

Exhibit 6

Whole-Farm History Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

12. Expanded 

Operation Average 

Expanded operation adjusted revenue and expenses. Refer to

paragraphs 71 and 72.

13. Whole-Farm 

Historic Average

(Revenue-greater of 

items 10, 11, or 12, 

and corresponding 

expenses)

Whole-farm historic average revenue and expenses. The whole-farm 

historic average revenue and expenses is the greater of item 10, 11, or 

item 12.

Note: The whole-farm historic average expenses is equal to the 

expenses that correspond to the whole-farm historic average 

revenue.

The following required entries are not illustrated on the Whole-Farm History Report example 

below.

14. Applicant/Insured 

Signature and Date

Applicant/insured signature and date. 

15. AIP Representative 

Signature and Date

AIP Representative signature and date.

Refer to exhibit 5 for required certification and other statements.
November 2018 FCIC -18160 119

Exhibit 6

Whole-Farm History Report (Continued)

B. Example Whole-Farm History Report

The following is an example only. It is an example Whole-Farm History Report. AIPs must 

develop a Whole-Farm History Report using the required elements and statements.

Whole-Farm History Report

1. Producer Information:

I.M. Insured Person Type: Individual

Anytown, USA, 11111

Phone: 999.999.9999 SSN: xxx.xx.xxxx

2. Agency Information: Agent Code: XX

I.M. Agent Policy: xxxx

Anytown, USA 11111

Phone: 111.111.1111

3. Policy Year:

2019

4. IRS Accounting Method: Cash 5. State/County:

Michigan/Vanburen

6. Tax Year 7. Allowable Revenue 8. Allowable Expenses

2013 $130,500 $83,500

2014 $149,500 $109,660

2015 $112,000 $83,500

2016 $139,600 $73,900

2017 $160,360 $110,370

9. Total $691,960 $460,930

10. Simple Average $138,392 $92,186

11. Indexed 

Yes No

$184,200 ($138,392 x 1.331) $100,206 ($92,186 x 1.087)

12. Expanded Operation $177,142 ($138,392 x 1.28) $117,998 ($92,186 x 1.28)

13. Whole-Farm Historic 

Average (Revenue-greater 

of items 10, 11, or 12, and 

corresponding expenses)

$184,200 $100,206
November 2018 FCIC -18160 120

Exhibit 7

Inventory Report

A. Required Elements Description

The following table provides descriptions of the Inventory Report required elements.

Item Required Element Description

PART 1: Producer Information 

1. IRS Accounting 

Method:

The accounting method, cash or accrual, the applicant/insured used to 

file Federal income tax with IRS for the policy year.

2. Policy Year: The current policy year. Includes beginning and ending month of 

fiscal year if applicant/insured filed Federal tax on fiscal year basis.

3. Producer 

Information:

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). 

4. Agency 

Information:

Name, address, telephone number and code number of the agent. 

Include policy number.

5. State/County: State and county where the majority of the total expected revenue for 

the policy year will be derived.

6. Commodity Name 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: 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.
November 2018 FCIC -18160 121

Exhibit 7

Inventory Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

PART 2: Beginning Inventory (First day of the Insurance Period) 

7. Location(s) Location of the commodity.

Example: 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.

8. Beginning 

Inventory

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: Verifiable records supporting the amount reported must be 

provided.

PART 3: Beginning Inventory (Value end of Insurance Period.)

9. Value For beginning inventories of commodities:

(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.

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
November 2018 FCIC -18160 122

Exhibit 7

Inventory Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

9. Value (continued) (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 

Farm Operation Report.

Example: 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.

Important: Verifiable records supporting the amount reported must 

be provided.

10 Cost or Basis Make no entry.

11. Value Received Result of multiplying item 8 x item 9.

Separate entries are required when the commodity is disposed of in 

more than one method.

Example: Insured had 1,000 bushels of farm stored corn in beginning 

inventory. During the insurance period, he 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) 

12. Location Location of the commodity.

Example: 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.

13. Ending Inventory 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: Verifiable records supporting the amount reported must 

be provided.
November 2018 FCIC -18160 123

Exhibit 7

Inventory Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

14. Average Value 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 Farm Operation Report. For 

commodities produced but not intended to be sold, such as livestock 

feed, enter “0”.

Example: 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.

15. Cost or 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.

16. Net Value Result of multiplying item 13 x item 14, then subtracting the amount 

in item 15 if applicable.

17. Total Beginning 

Value

Total of column 11.

18. Total Ending Value Total of column 16.

PART 5: Inventory Adjustment (To be completed only if a claim is filed)

19. 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.

20. Applicant/Insured 

Signature and Date

Applicant/Insured signature and date.

21. AIP Representative 

Signature and Date

AIP representative signature and date.

Refer to exhibit 5 for required certification and other statements.
November 2018 FCIC -18160 124

Exhibit 7

Inventory Report (Continued)

B. Example Inventory Report Form

The following is provided as an example only. AIPs must develop an Inventory and Accounts Receivable Report using the required elements and 

statements.

INVENTORY REPORT

PART 1 - PRODUCER INFORMATION

1. IRS 

Accounting 

Method: 

Accrual

2. Policy Year: 

2019

3. Producer Information:

I.M. Insured Person Type:

Box 1 Individual

Anytown, USA, 11111

Phone: 999.999.9999 SSN: 

xxx.xx.xxxx

4. Agency Information: Agent Code: XX

I.M. Agent Policy: xxxx

Box 2

Anytown, USA 11111

Phone: 111.111.1111

5. State/County:

Michigan/Vanburen

INVENTORIED COMMODITIES

6. Commodity 

Name

PART 2: Beginning Inventory 

(First Day of Insurance Period

PART 3: Beginning Inventory 

(Value End of Insurance 

Period)

PART 4: Ending Inventory (Last Day of the Insurance Period)

7. Location(s) 8. Beginning 

Inventory

9. Value 10. Cost 

or Basis

11. Value 

Received

12. Location(s) 13. Ending 

Inventory

14. Average 

Value

15. Cost 

or Basis

16. Net 

Value

Corn Storage 100 bu. $5.00 -- $500 0 $0

17. TOTAL BEGINNING VALUE $500 18. TOTAL ENDING VALUE $0

PART 5 – Inventory Adjustment (To be completed ONLY if a claim is filed)

19. Adjustment:

ITEM 18 AMOUNT: ($0) - ITEM 17 AMOUNT: ($500) = (-$500) Inventory Adjustment. Enter this amount, (+) or (-) in item 22 on the Claim for 

Indemnity Form.
November 2018 FCIC -18160 125

Exhibit 8

Accounts Receivable, Payable, and Prepaid Expenses Report

A. Required Elements Description

The following table provides descriptions of the Accounts Receivable, Payable, and Prepaid 

Expenses Report required elements.

PART 1 – PRODUCER INFORMATION

Item Required Element Description

1. Name 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).

2. Policy Number The insured’s assigned policy number.

3. Policy Year: The current policy year. Includes beginning and ending month of fiscal 

year if applicant/insured filed Federal tax on fiscal year basis.

4. Agency 

Information: 

The name, address, telephone number, and code number of the agent 

that provides insurance service to the insured.

PART 2. ACCOUNTS RECEIVABLE

5. Commodity Name 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: 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.

6. Name and Address 

of Buyer

Name of buyer for each commodity in item 5.

7. Beginning Amount 

(Dollars)

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.
November 2018 FCIC -18160 126

Exhibit 8

Accounts Receivable, Payable, and Prepaid Expenses Report (Continued)

A. Required Elements Description (Continued)

Item Required Element Description

8. Ending Amount 

(Dollars)

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 $4000.00 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.

9. Balance (8 - 7) 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. 

10. Total Accounts 

Receivable 

Adjustments to 

Claim (Dollars)

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.

11. Commodity Name Name of insured commodity for which expenses have not been paid at 

the beginning of the insurance period, regardless of the location of the 

commodity.

12. Name and Address 

of Creditor

Name of creditor for each commodity in item 11.

13. Beginning Amount 

(Dollars)

Total dollar amount payable for each insured commodity in item 11 that 

have unpaid expenses at the beginning 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 there are unpaid expenses.

14. Ending Amount 

(Dollars)

Total dollar amount payable for each insured commodity in item 11 that 

have unpaid expenses 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 there are unpaid expenses.
November 2018 FCIC -18160 127

Exhibit 8

Accounts Receivable, Payable, and Prepaid Expenses Report (Continued)

A. Required Elements Description (Continued)

PART 3. ACCOUNTS PAYABLE

Item Required Element Description

15. Balance (14-13) The change in accounts payable for each commodity in item 11. For 

each commodity, subtract the beginning amount (item 13) from the 

ending amount (item 14). The result can be positive or negative.

16. Total Accounts 

Payable 

Adjustments to 

Claim (Dollars)

Total change in accounts payable from all insured commodities. Sum 

the result of item 11 for each commodity. The result can be positive or 

negative.

PART 4. PREPAID EXPENSES

17. Beginning Prepaid 

Expenses Balance

Total dollar amount of balance of prepaid expenses for each insured 

commodity at the beginning of the insurance period.

Important: Verifiable records supporting the amount must be provided 

for each commodity for which there are prepaid expenses.

18. Ending Prepaid 

Expenses Balance

Total dollar amount of balance of prepaid expenses for each insured 

commodity at the end of the insurance period. 

Important: Verifiable records supporting the amount must be provided 

for each commodity for which there are prepaid expenses.

19. Balance (17-18) The change in prepaid expenses. Subtract the ending amount (item 18) 

from the beginning amount (item 17). The result can be positive or 

negative.

20. Total Prepaid 

Expenses 

Adjustments

Total change in prepaid expenses. Sum all entries in item 19. The 

result can be positive or negative

21. Total Accounts 

Payable/Prepaid 

Expenses 

Adjustments to 

Claim (16 + 20)

Total change in accounts payable and prepaid expenses for all insured 

commodities. Sum the items 16 and 20. Round to the nearest whole 

dollar. This entry will be transferred to item 13 on the Allowable 

Expenses Worksheet at claim time.

The following required entries are not illustrated on the Accounts Receivable, Payable, and 

Prepaid Expenses Report example below.

22. Applicant/Insured 

Signature and Date

Applicant/Insured signature and date.

23. AIP Representative 

Signature and Date

AIP representative signature and date.

Refer to exhibit 5 for required certification and other statements.
November 2018 FCIC -18160 128

Exhibit 8

Accounts Receivable, Payable, and Prepaid Expenses Report (Continued)

B. Example Accounts Receivable, Payable, and Prepaid Expenses Report Form 

The following is provided as an example only. AIPs must develop an Accounts Receivable, Payable, and Prepaid Expenses Report using the 

required elements and statements.

ACCOUNTS RECEIVABLE, PAYABLE, AND PREPAID EXPENSES REPORT

PART 1 - PRODUCER INFORMATION

1. NAME 2. POLICY NUMBER 3. POLICY YEAR 4. AGENCY INFORMATION

I.M. INSURED XXXXXXXXX YYYY I.R. AGENT XXXXX

PART 2. ACCOUNTS RECEIVABLE

5. Commodity Name 6. Name and Address of Buyer 7. Beginning Amount 8. Ending Amount 9. Balance (8 - 7)

10. Total Accounts Receivable Adjustments to Claim

PART 3. ACCOUNTS PAYABLE

11. Commodity Name 12. Name and Address of Creditor 13. Beginning Amount 14. Ending Amount 15. Balance (14-13)

16. Total Accounts Payable Adjustments

PART 4. PREPAID EXPENSES

17. Beginning Prepaid Expenses Balance 18. Ending Prepaid Expenses Balance 19. Balance (17-18)

20. Total Prepaid Expenses Adjustment

21. Total Accounts Payable/Prepaid Expense Adjustment to Claim (16 + 20)
November 2018 FCIC -18160 129

Exhibit 9

Market Animal and Nursery Inventory Report

A. Required Elements Description

The following table provides descriptions of the Market Animal and Nursery Inventory Report 

form required elements.

Part 1 - Producer Information

Item Required Element Description

1. Name 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).

2. Policy Number The insured’s assigned policy number.

3. Policy Year: The current policy year. Includes beginning and ending month of fiscal 

year insured is an early or late fiscal year filer.

4. Agency

Information: 

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

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

6. Number For each type/category) of animals in Column 5, enter the number on 

hand at the beginning of the insurance period.

Section B - Ending Inventory On The Last Day Of The Insurance Period

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.

Part 3 – Market Animals or Nursery

Type of Animals or Commodities

8. Type/Category The type/category of animals or commodities (cattle/feeder calves, 

hogs/feeder pigs, turkeys/broilers, chickens/broilers, catfish/stockers, 

etc.).

A separate line entry must be made 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.
November 2018 FCIC -18160 130

Exhibit 9

Market Animal and Nursery Inventory Report (Continued)

A. Required Elements Description (continued)

Section A - Beginning Inventory - First Day of The Insurance Period

8 Type/Category 

(continued) 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.

9. Number For each type/category of animals, animal products, nursery or 

greenhouse commodities in column 9, enter the number on hand at the 

beginning of the insurance period.

10. Average Weight, 

Container Size, etc.

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 (e.g., baby calves or weaning pigs sold by 

the head), enter a dash (-).

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

(3) For animals that died due to insured causes during the insurance 

period, a dash (-).

Nursery or Greenhouse: Enter:

(1) For commodities raised or purchased for resale, enter the average 

value per commodity at the beginning of the insurance period; or

(2) For commodities that died during the insurance period, a dash (-).

12. Average Value/Unit 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) x the average value (column 11).

(2) For animals sold individually and nursery and greenhouse 

commodities enter the same value as column 11.

13. Total $ Value The total value of all the animals, animal products, nursery, or 

greenhouse commodities entered on the line. Multiply the number of 

commodities (column 9) x the average value (column 12).

This value is the cost/basis that is transferred to the Farm Operation 

Report
November 2018 FCIC -18160 131

Exhibit 9

Market Animal and Nursery Inventory Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

14 Actual Cost 

(Claims Only)

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.

15 Net Value (Claims 

Only)

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

16. Number Animals or Animal Products: The number of animals on hand at the 

end of the 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.

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.

17. Average Weight, 

Container Size, etc.

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.

Nursery or Greenhouse: Enter:

(1) For plants sold individually or the cost/basis is greater than the 

sold price, a dash (-).

(2) For plants that died due to insured causes during the insurance 

period, the entry from column 10 of the same type/category.
November 2018 FCIC -18160 132

Exhibit 9

Market Animal and Nursery Inventory Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

18. Average Value 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) For plants that have a cost/basis greater than the sold price, the 

result of subtracting the sold price from the cost/basis.

19. Average 

Value/Unit

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) x the average value (column 18).

(2) 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.

20. Total $ Value Animals or Animal Products: The total value of all animals, animal 

products, nursery, or greenhouse commodities entered on the line. 

Multiply the number of commodities (column 16) x the average value 

(column 19).

21. Cost or Basis Animals or Animal Products: The average cost or basis of the 

animals, animal products, nursery, or greenhouse commodities 

purchased for resale or growth during the insurance period. For 

breeding animals purchased as assets, enter the amount paid less the 

depreciation allowed in previous tax years and the current tax year, 

multiplied times the number of animals being depreciated. For animals 

produced on the farm or carried over from the beginning inventory, 

enter “0.”
November 2018 FCIC -18160 133

Exhibit 9

Market Animal and Nursery Inventory Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

22. Net Value 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.

23. Total Beginning 

Value

Total of Column 13.

24. Total Ending Value 

Less Cost or Basis:

Total of Column 22.

Part 4 - Inventory Adjustment (To Be Completed Only If A Claim Filed)

25. Adjustment: 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.

26. Applicant/Insured 

Signature and Date

Applicant/Insured Signature and Date @ SCD

27. AIP Representative 

Signature and Date

AIP Representative Signature and Date @ end of insurance period.

Refer to exhibit 5 for required certification and other statements.
November 2018 FCIC -18160 134

Exhibit 9

Market Animal and Nursery Inventory Report (Continued)

B. Example Market Animal and Nursery Inventory Report Form (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.

MARKET ANIMAL AND NURSERY INVENTORY REPORT

Part 1 - Producer Information

1. NAME 2. POLICY NUMBER 3. POLICY YEAR 4. AGENCY INFORMATION

I.M. INSURED XXXXXXXXX YYYY I.R. AGENT XXXXX

Part 2 – Breeding Livestock Only

Type of Animals or 

Commodity

Section A - Beginning Inventory First Day of the Insurance Period Section B - Ending Inventory Last Day of the Insurance Period

Type/Category

5

Number

6

Number

7

Part 3 – Market Animals or Nursery

Type of Animals or 

Commodities

Section A - Beginning Inventory First Day of the Insurance Period Section B - Ending Inventory Last Day of the Insurance Period

Type/Category

8

Number

9

Average 

Weight or 

Container 

Size

10

Average 

Value

11

Average 

Value/Unit

12

Total $ 

Value

13

Actual

Cost 

(Claims 

Only)

14

Net Value 

(Claims 

Only)

15

Number

16

Average 

Weight or 

Container 

Size

17

Average 

Value

18

Average 

Value/Unit

19

Total $ 

Value

20

Cost or 

Basis

21

Net $ 

Value

22

Mums 1,000- - $2.00/plant $2.00/Plants- $2,000 $500 $1,500 0 - - - - - 0

Hogs 125 hd. 50 lbs. $1.00/lb. $50.00/hd. $6,250 $6,250 0 - - - - - 0

23 Total Beginning Value $7,750 24 Total Ending Value $0

Part 4 - Inventory Adjustment (to be completed ONLY if a claim is filed)

25. Adjustment:

Amount in item 24 $0 Amount in item 23 $7,750 = -$7,750 Inventory Adjustment. Enter result, (+) or (-), in item 28 on the Claim for Indemnity Form.
November 2018 FCIC -18160 135

Exhibit 9

Market Animal and Nursery Inventory Report (Continued)

B. Example Market Animal and Nursery Inventory Report Form (continued)

The following is provided as Livestock example only. Refer to the second Farm Operation Report in exhibit 10for livestock example.

MARKET ANIMAL AND NURSERY INVENTORY REPORT

Part 1 - Producer Information

1. NAME 2. POLICY NUMBER 3. POLICY YEAR 4. AGENCY INFORMATION

I.M. INSURED XXXXXXXXX YYYY I.R. AGENT XXXXX

Part 2 – Breeding Livestock Only

Type of Animals or Commodity Section A - Beginning Inventory First Day of the Insurance Period Section B - Ending Inventory Last Day of the Insurance Period

Type/Category

5

Number

6

Number

7

Bulls 3 3

Bred Cows 67 67

Bred Heifers 8 8

Replacement 8 8

Part 3 – Market Animals or Nursery

Type of Animals or Commodities Section A - Beginning Inventory First Day of the Insurance Period Section B - Ending Inventory Last Day of the Insurance Period

Type/Category

8

Number

9

Average 

Weight or 

Container 

Size

10

Average 

Value

11

Average 

Value/Unit

12

Total $ 

Value

13

Actual

Cost 

(Claims 

Only

14

Net 

Value 

(Claims 

Only)

15

Number

16

Average 

Weight or 

Container 

Size

17

Average 

Value

18

Average 

Value/Unit

19

Total $ 

Value

20

Cost or 

Basis

21

Net $ 

Value

22

Feeder - - - - 34 588 $1.35 $794/hd. $26,996 - $26,996

Feeders 62 590 1.30 $767/hd. $47,554 $47,554 0 - - - - - 0

Bulls (Calves) - - - - 2 - $2,250 $2,250/hd. $ - $4,500

Bulls (yearlings) 2 - $2,250/hd. $2,250/hd. $4,500 $4,500 1 - $5,250 $5,250/hd. $ - $5,250

Bulls (2 Year) 1 - $5,250/hd. $5,250/hd. $5,250 $5,250 0 - - - - 0

Bull (yearling) Deceased 1 $2,250 $2,250/hd. $2,250 $2,250

Cow (basis higher than sold price) 1 1 - $200 $200 $200 $200

23 Total Beginning Value $57,304 24 Total Ending Value $39,196

Part 4 - Inventory Adjustment (to be completed ONLY if a claim is filed)

25. Adjustment:

Amount in item 24 $39,196 Amount in item 23 $57,304 = -$18,108 Inventory Adjustment. Enter result, (+) or (-), in item 28 on the Claim for Indemnity Form.
November 2018 FCIC -18160 136

Exhibit 10

Farm Operation Report

A. Required Elements Description

The following table provides descriptions of the Farm Operation Report form required elements.

Item Required Element Description

1. Policy Year: 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.

2. Producer 

Information:

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).

3. Agency 

Information:

Name, address, telephone number, code number of the agent and policy 

number.

4. State/County: 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.

4a. Did the county 

where the majority 

of revenue is 

expected to be 

earned change 

within the policy 

year? Yes No

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.

5. Other Insurance: 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

6. Commodity Name

***

Intended: Name of each intended commodity that is or will be 

purchased for resale or produced for revenue during the 

insurance period. Refer to paragraph 48(2)(e) and (f).

Revised: List any additional commodities purchased for resale or 

produced for revenue. Refer to paragraph 49

7. Commodity Code Enter the commodity code for the intended commodity listed in the AD

8. Rate Code Enter the rate code for the intended commodity listed in AD

9. Method of 

Establishment 

Method of how the intended commodity is produced, such as acres, 

head, or square feet. For intended commodities that are certified 

organic, use the organic code associated with the method.

10. Yield Expected yields used will be in accordance with the section 18 of the 

policy and Exhibit 18 of this handbook
November 2018 FCIC -18160 137

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

10. Yield (continued) 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 4 for units of measure.

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.

11. Expected Value Intended: 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.

Revised: If additional commodities were added, enter the expected 

value in dollars and cents in accordance with Exhibit 18.

Refer to exhibit 4 for units of measure

12. Expected Revenue 

(10x11)

Enter the result of multiplying item 10 times item 11. Enter method of 

establishment immediately after the dollar amount.

13A. Intended Quantity 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) total number of acres, rounded to tenths, for field grown 

commodities;

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.
November 2018 FCIC -18160 138

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

13A. Intended Quantity

(continued)

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: 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 Farm Operation Report after 

SCD.

13B. Cost/Basis and/or 

Value

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 x $1.00).

Make no entry for commodities added to Farm Operation Report after 

SCD.

13C. Share Enter the insured’s share in the commodity at the time the Intended 

Farm Operation Report is submitted, to four decimal places.

13D. Percent Produced 

to Sell

Enter the percent of the commodity produced to sell in decimal form, 

rounded to four places (i.e., 50% entered as 0.5000).

13E. Total Expected 

Revenue

[(12x13A) – 13B) 

x 13C] x 13D.

Enter the result of multiplying (item 12 x item 13A, minus item 13B) 

x item 13C. Multiply the result by item 13D. Round to the nearest 

whole dollar. If the result is a negative number, enter zero. 
November 2018 FCIC -18160 139

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (continued)

Revised

Item Required Element Description

14A. Actual Quantity 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: Include only bearing acres for perennial field 

grown commodities.

(c) Enter the quantity of additional commodities listed in item 6.

Refer to paragraph 49.

14B. Actual Cost/Basis 

and/or Value

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:
November 2018 FCIC -18160 140

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

14B. Actual Cost/Basis 

and/or Value

(continued)

(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.

14C. Share 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.

14D. Percent Produced 

to Sell

Enter the percent of the commodity produced to sell in decimal form, 

rounded to four places (i.e., 50% entered as 0.5000).

14E. Total Expected 

Revenue

(1) For additional commodities, or those which item 14C is not the 

same as 13C, enter the result of multiplying (item 12 x item 14A

minus item 14B) x item 14C. Round to the nearest whole dollar. 

If the result is a negative number, enter zero.

(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
November 2018 FCIC -18160 141

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (continued)

Final

Item Required Element Description

15A. Final Production Enter the total amount of production of each commodity produced for 

the insurance period. 

15B. 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.

16. Total Expected 

Revenue at SCD

Enter the sum all amounts in column 13D.

17. Total Expected 

Revenue

Enter the sum all amounts in column 14D and column 15B as 

applicable.

18. Total Expected 

Revenue @ SCD 

(Total of item 16

and 17 @ SCD), 

Enter the sum of item 16 and 17 at SCD.

19. Whole-Farm 

Historic Average 

Revenue (item 15

of WFHR) 

Enter the amount from item 15 of the applicant’s/insured’s current 

Whole-Farm History Report.

20. Total Expected 

Revenue @ 

Revised Reporting 

Date (item 17)

Total expected revenue for the farm operation for the policy year. 

Enter the result of item 17.

21. Approved Revenue 

(Lesser of item 18

and 19 @ SCD or 

item 19 and 20 @ 

RRD) 

Approved revenue for the farm operation for the policy year. 

21a. Approved Revenue 

@ SCD

Enter the lesser of item 18 or item 19 as of the SCD.

21b. Approved Revenue 

@ Revised 

Reporting Date

Enter the lesser of item 19 or item 20 as of the Revised Reporting 

Date.

22. Approved 

Expenses

Approved expenses for the farm operation for the policy year.

22a. Approved 

Expenses @ SCD

Approved expenses at SCD. (Refer to subparagraph 72(5) for approved 

expenses determination)

22b. Approved 

Expenses @ RRD

Approved expenses at RRD. (Refer to subparagraph 72(5) for 

approved expenses determination)
November 2018 FCIC -18160 142

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

23. Narrative, Expected 

Values and Report 

of Changes:

***

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 Farm Operation Report. (i.e., two separate plantings 

of the same commodity on the same acreage during the insurance 

period).

24. Integrated/PostProduction 

Operations:

Check “YES” or “NO” as applicable. Refer to paragraphs 142 and 

147 for further instructions.

The following required entries are not illustrated on the Farm Operation Report example 

below.

25. Applicant/Insured 

Signature @ SCD 

and Date

Applicant/insured signature @ SCD and date. Insured must sign and 

date Farm Operation report each time it is updated.

26. AIP Representative 

Signature @ SCD 

and Date

AIP representative signature @ SCD and date. AIP representative 

must sign, and date Farm Operation report each time it is updated.

27. Insured Signature 

@ Revised 

Reporting Date and 

Date

Insured signature @ Revised Reporting Date and date. Insured must 

sign and date Farm Operation report each time it is updated.

28. AIP Representative 

Signature @ 

Revised Reporting 

Date and Date

AIP representative signature @ Revised Reporting Date and date. 

AIP representative must sign, and date Farm Operation report each 

time it is updated.

29. Insured Signature 

@ Final Reporting 

and Date

Insured signature @ Final Reporting and Date and date.

30. AIP Representative 

Signature @ Final 

Reporting and Date

AIP representative signature @ Final Reporting and Date and date.

Refer to exhibit 5 for required certification and other statement.
November 2018 FCIC -18160 143

Exhibit 10

Farm Operation Report (Continued)

B. Farm Operation Report Form Example

The following is provided as an example only. AIPs must develop a Farm Operations Report using the required elements and statements.

FARM OPERATION REPORT

1.Policy Year: 

2019

2. Producer Information:

I.M. Insured Person Type: Individual

Anytown, USA, 11111

Phone: 999.999.9999 SSN: xxx.xx.xxxx

3. Agency Information: Agent Code: XX

I.M. Agent Policy: xxxx

Anytown, USA 11111

Phone: 111.111.1111

4. State/County:

Michigan/Vanburen

5. Other Insurance:

Corn Policy xxxx

4a. Did the county where the majority of the revenue is 

expected to be earned change within the policy year?

 Yes No

Intended Revised Final

6. Commodity 

Name

7. 

Commodity

Code

8. 

Rate

Code

9.

Method of 

Establishment

10.

Yield

11.

Expected 

Value

12.

Expected 

Revenue 

(10x11)

13A.

Intended

Quantity

13B. 

Cost/Ba

sis 

and/or 

Value 

13C. 

Share

13D. 

Percent 

Produced 

to Sell

13E.

Total Expected 

Revenue

[(12x13A) –

13B) x 13C] x

13D.

14A. Actual

Quantity

14B.

Actual 

Cost/B

asis 

and/or 

Value

14C.

Share

14D. Actual 

Percent 

Produced to 

Sell

14E.

Total 

Expected 

Revenue

15A. Final

Total 

Production

15B. Final

Revenue

Corn NIRR 004100 1002 Acres 150 bu. $5.00/bu. $750.00/ac. 250 ac. 1.0000 0.5000 $93,750 250 ac. 1.0000 0.5000 $88,750 11,250 bu. $56,250

Mums 007300 0073 Plants 1 Plant $10.00/plant $10.00/plant 1000 plants $2,000 1.0000 $8,000 1000 plants $2,000 1.0000 $8,000 200 plants $1,800

Geraniums 007300 0073 Plants 1 Plant $10.00/plant $10.00/plant 1000 plants $1,000 1.0000 $9,000 1000 plants $1,000 1.0000 $9,000 1000 plants $8,000

Hogs –

Farrow/Finish

081500 0804 Head 225 lbs. $1.00/lbs. $225.00/head 250 head $6,250 1.0000 $50,000 250 head $6,250 1.0000 $50,000 125 head $21,875

Soybeans NIRR 008100 1009 Acres 50 bu. $10.00/bu. 10 ac. 1.0000 $5,000 500 bu. $5,000

16. Total At SCD $160,750

17. Total $160,750 $92,925

18. Total Expected Revenue @ SCD (Total of Item 16 and 17 @ SCD) $160,750

19. Whole-Farm Historic Average Revenue (Item 15 of WFHR) $184,200

20. Total Expected Revenue @ Revised Reporting Date (Item 17) $160,750

21. Approved Revenue (Lesser of item 18 and 19 @ SCD or item 19 and 20 @ RRD) 21a. $160,750 21b. $160,750

22. Approved Expenses 22a. $107,120 22b. $107,120

23. Narrative, Expected Values, and Report of Changes:

Mums - Item 15A and 15B 800 plants lost due to uninsured cause of loss. $7200 adjustment must be made to Claim for Indemnity Form if completed.

Hogs - Item 15A and 15B 125 head lost to insured cause of loss (facilities destroyed by adverse weather).

Corn - 250 acres intended. 200 ac. planted, and 50 ac prevented from being planted. 10 ac of the prevented acres were planted to soybeans. Calculated: $93,750 (corn) - $5,000 (soybeans) = $88,750 (corn)

Soybeans – 10 ac planted to replace corn that was prevented from planting.

24. Integrated/Post-production Operations: ( ) YES or (x) NO Refer to Special Circumstances in Section 6.
November 2018 FCIC -18160 144

Exhibit 10

Farm Operation Report (Continued)

B. Farm Operation Report Form Example (continued)

The following is provided as Livestock example only.

FARM OPERATION REPORT

1.Policy Year: 

2019

2. Producer Information:

I.M. Insured Person Type: Individual

Anytown, USA, 11111

Phone: 999.999.9999 SSN: xxx.xx.xxxx

3. Agency Information: Agent Code: XX

I.M. Agent Policy: xxxx

Anytown, USA 11111

Phone: 111.111.1111

4. State/County:

Michigan/Vanburen

5. Other Insurance:

Corn Policy xxxx

4a. Did the county where the majority of the revenue is 

expected to be earned change within the policy year?

 Yes No

Intended Revised Final

6. Commodity 

Name

7. 

Commodity

Code

8. 

Rate Code

9.

Method of 

Establishment

10. Yield 11.

Expected 

Value

12.

Expected 

Revenue 

(10x11)

13A.

Intended

Quantity

13B. 

Cost/Ba

sis 

and/or 

Value 

13C. 

Share

13D. 

Percent 

Produced to 

Sell

13E.

Total 

Expected 

Revenue

[(12x13A) –

13B) x 13C] x

13D.

14A. Actual

Quantity

14B.

Actual 

Cost/Basis 

and/or 

Value

14C.

Share

14D. 

Actual 

Percent 

Produced 

to Sell

14E.

Total 

Expected 

Revenue

15A. Final

Total 

Production

15B. Final

Revenue

Cow 082300 0823 Head 1,200 lbs. $1.00/lbs/ $1,200/hd. 1 head $1,000 1.0000 $200 1 head $1,000 1.0000 $200 1,000 lbs.` $0

Bull (2 yr. old) 082300 0823 Head 1 head $6,000/hd. $6,000/hd. 21 head $5,250 1.0000 $750 1 head $5,250 1.0000 $750 1 head $750

Bull (yearling) 082300 0823 Head 1 head $5,250/hd. $5,250/hd. 2 head $4,500 1.0000 $6,000 2 head $4,500 1.0000 $6,000 1 head $6,000

Bull (calves) 082300 0823 Head 2 head $2,250/hd. $2,250/hd. 2 head 1.0000 $4,500 2 head - 1.0000 $4,500 2 head $4,500

Feeders 080000 0801 Head 650 lbs. $1.35 $878 62 head $47,554 1.0000 $6,882 62 head $47,554 1.0000 $6,882 62 head $6,882

Feeders 080000 0801 Head 550 lbs. $1.25 $678 66 head 1.0000 $45,408 66 head - 1.0000 $45,408 66 head $45,408

16. Total At SCD $63,740

17. Total $64,740 $63,540

18. Total Expected Revenue @ SCD (Total of Item 16 and 17 @ SCD)

19. Whole-Farm Historic Average Revenue (Item 15 of WFHR)

20. Total Expected Revenue @ Revised Reporting Date (Item 17)

21. Approved Revenue (Lesser of item 18 and 19 @ SCD or item 19 and 20 @ RRD) 21a. 21b.

22. Approved Expenses 22a. 22b.

23. Narrative, Expected Values, and Report of Changes:

EXAMPLE LIVESTOCK FARM OPERATION: Producer has 67 Bred Cows, 8 Bred Heifers, 8 Replacement Heifers, and 3 Bulls (refer to exhibit 9). Producer is expecting 68 calves (34 heifers, 32 steers, and 2 pure bred bulls). The 66 

calves will be sold as feeders the following year and the 2 pure bred bulls will be sold as 2-year olds for $6000 (valued at $250/ month growth). One pure bred died as a yearling. Producer also purchased one cow for $1,000 expecting to 

sell for $1,200. Later sold it for $800 (cost basis more than sold price).

24. Integrated/Post-production Operations: ( ) YES or (x) NO Refer to Special Circumstances in Section 6.
November 2018 FCIC -18160 145

Exhibit 11

Replant Payment Worksheet

A. Required Elements Description

The following table provides descriptions of the Replant Payment Worksheet 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 

Information:

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).

6. Agency Information Name, address, telephone number and code number of the agent. 

Include policy number.

7. Companion 

Policy(s)

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.

8. Date of Damage: 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.

9. Cause of Damage: 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.

10. Primary Cause (%): 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.

11. Dates of Notice: Date(s) insured provided notice of loss.

12. Commodity 

Name/Code

Name and commodity code number of the commodity replanted

For commodities with varying shares of replant costs, make separate 

line entries.

13. Determined Acres 

Replanted

Number of acres of the commodity the AIP determines were actually 

replanted, and that the AIP agreed were practical to replant and gave 

consent to replant.
November 2018 FCIC -18160 146

Exhibit 11

Replant Payment Worksheet (Continued)

A. Required Elements Description (Continued)

Item Required Element Description

14. Actual Replant Cost The actual per acre cost to replant the commodity the AIP determines 

from records provided by the insured.

15. Maximum Replant 

Payment

The maximum dollar amount per acre (20% of the expected revenue of 

the commodity (column 10 of the Farm Operation Report) x coverage 

level).

16. Replant payment 

per Acre (Lesser of 

Column 14 or 15)

Enter the lesser of the actual replant cost (column 14) or the maximum 

replant payment (column 15).

17. Replant Cost 

Allowed (Column 

13 X Column 16)

Enter the result of the determined acres replanted (column 13) 

multiplied by the replant payment per acre (column 16).

18. Share Enter the insured’s share of the replanting payment for the acres of the 

commodity replanted.

19. Replant Payment Enter the result of column 17 multiplied by column 18.

20. Total Total is the sum of all monetary entries in column 19

21. Narrative Document:

(1) reason no replant payment due, if applicable;

(2) calculation of item 15 (maximum replant payment)

(3) 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.

22. Similar Damage on 

Other Farms in the 

Area?

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.”

23. Assignment of 

Indemnity?

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.

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 5 for required certification and other statements.
November 2018 FCIC -18160 147

Exhibit 11

Replant Payment Worksheet (Continued)

B. Replant Payment Worksheet Form Example

The following is provided as an example only. AIPs must develop a Replant Payment Worksheet using the required elements and 

statements.

REPLANT PAYMENT WORKSHEET

1. Policy Year:

2019

2. State/County:

MI / Bay

5. Insured Information:

I.M. Insured Person Type:

Box 1 Individual

Anytown, USA, 11111

Phone: 999.999.9999 SSN: xxx.xx.xxxx

6. Agency Information: Agent Code: XX

I.M. Agent 

Box 2

Anytown, USA 11111

Phone: 111.111.1111

7. Companion Policy(s)

NONE

3. Policy Number:

xxxxxxxxxx

4. Claim Number:

xxxxxxx

8. Date of Damage:

MAY 25, 2019

9. Cause of Damage:

HAIL

10. Primary Cause (%):

100%

11. Date(s) of Notice:

5/27/2019

12.Commodity 

Name/Code

13. Determined 

Acres Replanted

14. Actual 

Replant Cost

15. Maximum 

Replant Amount 

16. Replant Payment 

per Acre (Lesser of 

Column 14 or 15)

17. Replant Cost 

Allowed (Column 13 x 

Column 16)

18. Share 19. Replant 

Payment

Corn NIRR/004100 50.0 $75.00 $127.50 $75.00 $3,750 1.0000 $3,750

20. TOTAL $3,750

21. Narrative: Consent given to replant 50 acres of Corn. Actual replant cost verified with insured’s receipts. Maximum replant payment allowed calculation .20 x 

(150bu/acre x $5.00/bu.) x .85(coverage level).

22. Similar Damage on Other Farms in the Area? YES 23. Assignment of Indemnity? NO
November 2018 FCIC -18160 148

Exhibit 12

Schedule F Example

Example of Completed Schedule F Form:
November 2018 FCIC -18160 149

Exhibit 12

Schedule F Example (Continued)

Example of Completed Schedule F Form (continued)
November 2018 FCIC -18160 150

Exhibit 13

Substitute Schedule F Example

A. Use of the Substitute Schedule F

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.

B. Required Elements Description

The Substitute Schedule F will be completed by the insured using the instructions provided by the 

IRS for the Schedule F.

The following table provides descriptions of the Substitute Schedule F required elements not 

provided for by the IRS instruction.

Required Element Description

The following required entries are not illustrated on the Substitute Schedule F example below.

Insured’s Signature and Date: Insured signature and date.

AIP Representative Signature and Date AIP representative’s signature and date.
November 2018 FCIC -18160 151

Exhibit 13

Substitute Schedule F Example (Continued)

C. Substitute Schedule F Form Example

The following is provided as an example only:

Substitute Schedule F
November 2018 FCIC -18160 152

Exhibit 14

Allowable Expenses Worksheet

A. Use of Allowable Expenses Worksheet

The Allowable Expenses Worksheet is a required worksheet AIPs must use in determining an 

applicant’s/insured’s allowable expenses 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 expenses.

B. Information Directly from Schedule F

Completion of the Allowable Expenses 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 II Expenses” on the Allowable Expenses Worksheet are taken directly from the 

list of farm expenses listed in Part II of the Schedule F tax form. The farm expenses listed on the 

Schedule F have changed over time and may change in future years. Therefore, the items to be 

listed in the required element titled “Schedule F Part II Expenses” may vary from year to year.

C. Required Elements Description

The following table provides descriptions of the required elements for the Allowable Expenses 

Worksheet.

Note: The descriptions provided in the table are based on the 2013 Schedule F form.

Item Required Elements Description

1. Producer 

Information:

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).

2. Policy Number: Policy number. Enter “N/A” if no policy number has been assigned to 

applicant.

3. State/County: State and county where the majority of the total expected revenue for 

the policy year will be derived.

4. Tax Year: Tax year of the corresponding Schedule F from which the information 

is being taken.

5. Adjustment Codes: Codes to identify specific types of adjustments made to expense 

amounts listed on applicant’s/insured’s Schedule F. Enter:

(1) “A = Schedule F expenses specifically excluded;”

(2) “B = Cost of post-production operations;”

(3) “H = Not directly related to production;” and

(4) “I = Other.”

6. Schedule F Part II 

Expenses

List of farm expense items taken directly from Part II of the 

applicant’s/insured’s Schedule F. Enter the farm expenses listed in 

Part II of the applicant’s/insured’s Schedule F for the tax year entered 

in item 4.
November 2018 FCIC -18160 153

Exhibit 14

Allowable Expenses Worksheet (Continued)

C. Required Elements Description (continued)

Item Required Elements Description

7. Schedule F Line 

Number

Line number on the Schedule F for the required entry.

8. Amount on Schedule 

F

Dollar amount entered on Schedule F for each farm expense listed in 

item 6.

For each farm expense item listed in item 6, enter the exact dollar 

amount the applicant/insured entered on their Schedule F for that farm 

expense. Enter “0” if no dollar amount was entered for the farm 

expense on the Schedule F.

9. Expense Adjustment 

Amount and Code

Dollar amount to be subtracted from the dollar amount in item 8, and 

the applicable adjustment code from item 5.

The following farm expenses reported on the Schedule F must be 

excluded from allowable expenses for WFRP purposes. Therefore, 

enter the exact dollar amount the applicant/insured entered on their 

Schedule F for the following farm expenses. Immediately after the 

dollar amount, enter adjustment code “(A).”

(1) Employee benefits program, other than on line 23.

(2) Interest: Mortgage and Other.

(3) Pension and Profit-sharing plans.

(4) Rent or lease: Vehicles, machinery, equipment, and Other (land, 

animals, etc.).

(5) Taxes.

For the farm expense item titled “depreciation and section 179 

expense,” enter the amount of depreciation for everything other than 

animals, immediately followed by adjustment code “(I).”

For each farm expense item not listed above, enter:

(1) the amount equal to the post-production costs, immediately 

followed by adjustment code “(B),” if the amount entered in item 8 

includes post-production costs;

(2) the amount equal to all indirect expenses, immediately followed by 

adjustment code “(H)”, if the amount entered in item 8 includes 

any indirect expenses;

(3) the amount equal to all other expenses not allowed to be included 

in allowable expenses for WFRP purposes according to the WFRP 

policy, immediately followed by adjustment code “(I),” if the 

amount entered in item 8 includes any such expenses; and
November 2018 FCIC -18160 154

Exhibit 14

Allowable Expenses Worksheet (Continued)

C. Required Elements Description (continued)

Item Required Elements Description

9. Expense Adjustment 

Amount and Code 

(continued)

(4) “0” if the amount entered in item 8 does not include postproduction costs, indirect expenses, or any other expenses not 

allowed to be included in allowable expenses for WFRP purposes.

Verifiable payroll, processor, or other records must be provided to 

determine the amount of post-production costs, indirect expense, and 

other expense to be enter in item 9.

10. Allowable Expense 

Per Item

Amount of allowable expense for each farm expense listed in item 6. 

Determine the amount of allowable expense for each farm expense 

listed in item 6 by subtracting the amount(s) entered in item 9 from the 

amount entered in item 8.

11. Total Schedule F 

Part II Expenses

Enter the total for:

(1) farm expenses on Schedule F, by summing all amounts in item 8;

(2) expense adjustment amount, by summing all amounts in item 9; 

and

(3) allowable expenses per item, by summing all amounts in item 10.

12. Cost or other basis 

of livestock or other 

items reported on 

line 1a or 37 of the

Schedule F

Cost, or other basis, of animals or other items purchased for resale.

For CASH FILERS enter the exact dollar amount the applicant/insured 

entered in item 1b of Part I, Farm Income, of their Schedule F.

For ACCRUAL FILERS enter the exact dollar amount the 

applicant/insured entered in item 46 of their Schedule F.

13. Accounts Payable 

Adjustment

Enter the amount from item 21 on the Accounts Receivable, Payable, 

and Prepaid Expenses Worksheet. This entry is made only at claim 

time.

14. Allowable Expenses 

for Tax Year

Enter the sum of adding the total for allowable expenses per item (item 

11 entry for column 10) plus items 12 and 13.

The following required entries are not illustrated on the Allowable Expenses Worksheet 

example below.

15. Applicant/Insured 

Signature and Date

Applicant/Insured signature and date:

16. AIP Representative 

Signature and Date

Signature of AIP representative that completed the worksheet, and date 

completed.

Refer to exhibit 5 for required certification and other statements.
November 2018 FCIC -18160 155

Exhibit 14

Allowable Expenses Worksheet (Continued)

D. Allowable Expenses Worksheet Form Example

The following is an example Allowable Expenses Worksheet using farm expenses from 2013 

Schedule F or Substitute Schedule F.

Allowable Expenses Worksheet

1. Producer Information:

I.M. Insured Person Type: 

Individual

Box 1 

Anytown, USA, 11111 

Phone: 999.999.9999 

2. Policy Number:

XXXXXX

5. Adjustment Codes:

A = Schedule F expenses specifically 

excluded

B = Cost of post-production operations

H = Not directly related to production 

I = Other

3. State/County:

Michigan/Vanburen

4. Tax Year: 2019

6. Schedule F Part II Expenses 7. Schedule 

F Line 

Number

8. Amount on 

Schedule F

9. Expense Adjustment 

Amount and Code

10. Allowable 

Expense Per Item

Car and truck Expenses 10 $3,250 0 $3,250

Chemicals 11 $6,520 0 $6,520

Conservation expenses 12 $2,640 0 $2,640

Custom hire 13 $3,900 0 $3,900

Depreciation and section 179 expense 14 $3,500 $3,500 (I) 

all depreciation was for 

other than animals

0

Employee benefit programs other than on 

line 23

15 0 0 0

Feed 16 $15,000 0 $15,000

Fertilizers and lime 17 $9,200 0 $9,200

Freight and trucking 18 $3,550 0 $3,550

Gasoline, fuel, and oil 19 $9,350 0 $9,350

Insurance (other than health) 20 $3,650 0 $3,650

Interest: Mortgage and Other 21a + 21b $14,500 $14,500 (A) 0

Labor hired 22 $10,300 0 $10,300

Pension and profit-sharing plans 23 0 0 0

Rent or lease: Vehicles, machinery, 

equipment, and Other (land, animals, etc.)

24a + 24b $6,750 $6,750 (A) 0

Repairs and maintenance 25 $5,500 0 $5,500

Seeds and plants 26 $10,410 0 $10,410

Storage and warehousing 27 0 0 0

Supplies 28 $4,780 $2,500 (B) $2,280

Taxes 29 $5,450 $5,450 (A) 0

Utilities 30 $5,550 0 $5,550

Veterinary, breeding, and medicine 31 $4,000 0 $4,000

Other expenses (specify):

Association membership

Computer/software

Legal fees

Commodity Grading

32

$350 0 $350

$750 $750 (H) 0

$950 $950 (H) 0

0 0 0

11. Total Schedule F Part II Expenses $129,850 $34,400 $95,450

12. Cost or other basis of livestock or other items reported on line 1a or 37 of the

Schedule F

0 

13. Accounts Payable/Prepaid Expense Adjustment 0

14. Allowable Expenses for Tax Year $95,450
November 2018 FCIC -18160 156

Exhibit 15

Allowable Revenue Worksheet

A. 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.

B. 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.

If at claim time, it is determined by the AIP that the insured filed their taxes using a method (net 

vs. gross in terms of allowable revenue) differently than any year within their whole-farm history 

period, then all years’ allowable revenue determined to be filed using a different method within 

the whole-farm history period must be adjusted using the same method the insured used for the 

policy year.

C. 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 2013 Schedule F form.

Item Required Elements Description

1. Producer 

Information:

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).

2. Policy Number: Policy number. Enter “N/A” if no policy number has been assigned to 

applicant.

3. State/County: State and county where the majority of the total expected revenue for 

the policy year will be derived.

4. Tax Year: Tax year of the corresponding Schedule F from which the information is 

being taken. 
November 2018 FCIC -18160 157

Exhibit 15

Allowable Revenue Worksheet (Continued)

C. Required Elements Description (Continued)

Item Required Elements Description

5. Adjustment Code Codes to identify specific types of adjustments made to revenue 

amounts listed on applicant’s/insured’s Schedule F. Enter:

(1) “A = Schedule F income specifically excluded”;

(2) “B = Cost of post-production operations”;

(3) “C = Co-op distributions not directly related”;

(4) “G = Net gain from commodity hedges”;

(5) “H = Not directly related to production”; and

(6) “I = Other”.

Note: “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

6. Schedule F Part I 

(cash) or III 

(accrual) Revenue

List of farm revenue items taken from Part I or Part III of the 

applicant’s/insured’s Schedule F.

7. Schedule F Line 

Number

Line number on the Schedule F for the required entry.

8. Amount on Schedule 

F

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.
November 2018 FCIC -18160 158

Exhibit 15

Allowable Revenue Worksheet (Continued)

C. Required Elements Description (Continued)

Item Required Elements Description

8. Amount on Schedule 

F (continued)

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.

For farm revenue item “Commodity Credit Corporation (CCC) loans 

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 federal 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) Federal and state gasoline or fuel tax credit or refund.

(2) Income from bartering.

(3) Payments from buyers of commodities for bypassed acreage.

(4) Payments from marketing orders.

Enter “0” if no dollar amount was entered for the farm revenue item on 

the Schedule F.
November 2018 FCIC -18160 159

Exhibit 15

Allowable Revenue Worksheet (Continued)

C. Required Elements Description (Continued)

9. Revenue Adjustment 

Amount and Code

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) Agricultural Program Payments.

(2) Crop insurance proceeds and federal crop disaster payments.

(3) Custom hire (machine work) income.

(4) CCC loans repaid (except those repaid by a third-party buyer).

(5) 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” 

because the Allowable Expenses Worksheet accounts for appropriate 

adjustments.

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.
November 2018 FCIC -18160 160

Exhibit 15

Allowable Revenue Worksheet (Continued)

C. Required Elements Description (Continued)

Item Required Elements Description

9. Revenue Adjustment 

Amount and Code 

(continued)

For each farm revenue item not listed above, enter the amount equal to:

(1) the post-production costs 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

(5) all other revenue not allowed to be included in allowable revenue 

for WFRP purposes according to the WFRP policy, such as

revenue 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.

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.

10. Allowable Revenue 

Per Item

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.

11. Total Schedule F 

Part I or III Revenue

Enter the total for:

(1) farm revenue on Schedule F, by summing all amounts in item 8;

(2) revenue adjustment amount, by summing all amounts in item 9; and

(3) allowable revenue per item, by summing all amounts in item 10.

12. Allowable Revenue 

for Tax Year

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.

13. Applicant/Insured 

Signature and Date

Applicant/Insured signature and date:

14. AIP Representative 

Signature and Date

Signature of AIP representative that completed the worksheet, and date 

completed.

Refer to exhibit 5 for required certification and other statements.
November 2018 FCIC -18160 161

Exhibit 15

Allowable Revenue Worksheet (Continued)

D. Allowable Revenue Worksheet Example

The farm expenses 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 2013 Schedule F.

Allowable Revenue Worksheet 

1. Producer Information:

I.M. Insured Person Type: Individual

Box 1 

Anytown, USA, 11111 Phone: 999.999.9999 

2. Policy Number:

XXXXXX

3. State/County:

Michigan/Vanburen 

4. Tax Year: 2019

5. Adjustment Codes:

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 

I = Other

6. Schedule F Part I (cash) or III (accrual) Revenue 7. 

Schedule 

F Line 

Number

8. Amount on 

Schedule F

9. Revenue 

Adjustment Amount 

and Code

10. 

Allowable 

Revenue Per 

Item

a. Sales of animals and other resale items, less the 

cost or other basis of such items

1c or 37 0 0

b. Sales of livestock, produce, grains, and other 

products you raised

2 or 37 $97,400 $1,100 (B)

(for packing 

supplies)

$96,300

c. Cooperative distributions 3b or 38b $3,800 $3,240 (C) $560

d. Agricultural program payments 4b or 39b $18,200 $18,200 (A) $0

e. Commodity Credit Corporation (CCC) loans 

reported under election 

5a or 40a

0 0 0

f. CCC loans forfeited 5c or 40c 0 0 0

g. Crop insurance proceeds and federal crop 

disaster payments

6b or 41 $31,875 $31,875 (A) 0

h. Custom hire (machine work) income 7 or 42 $5,000 $5,000 (A) 0

i. Other income, including federal and state 

gasoline or fuel tax credit or refund:

Federal and state gasoline or fuel tax credit or 

refund

8 or 43 $2,400 $2,400 (A) 0

Income from bartering $200 0 $200

Payments from buyers of commodities for 

bypassed acreage

$1,000 0 $1,000

Payments from marketing orders $1,000 0 $1,000

11. Total Schedule F Part I or III Revenue $160,875 $61,815 $99,060

12. Allowable Revenue for Tax Year $99,060
November 2018 FCIC -18160 162

Exhibit 16

Claim for Indemnity Form

A. Required Elements Description

The following table provides descriptions of the Claim for Indemnity Report required elements.

Item Required Elements 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 indemnity is being calculated.

4. Claim Number: Claim Number assigned by the AIP.

5. Insured Information: 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).

6. Agency Information Name, address, telephone number and code number of the agent. 

Include policy number.

7. Companion 

Policy(s)

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.

8. Date of Damage: 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.

9. Cause of Damage: 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.

10. Primary Cause (%): 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.

11. Dates of Notice: Date(s) insured provided notice of loss.

12. Allowable Expenses 

for Policy Year

Whole dollar amount of allowable expenses for the policy year. Enter 

amount from item 14 of the Allowable Expenses Worksheet for the 

policy year.

13. Approved Expenses Approved expenses for the policy year, as calculated after making all 

required adjustments. Enter the amount from item 22b on the Farm 

Operation Report.
November 2018 FCIC -18160 163

Exhibit 16

Claim for Indemnity Form (Continued)

A. Required Elements Description (continued)

Item Required Elements Description

14. Expense Percentage 

(12/13)

Percentage amount used to determine the percentage amount of 

reduction in approved revenue, if applicable. Divide the allowable 

expenses for the policy year (item 12) by the approved expenses for the 

policy year (item 13). Enter as a three decimal place number. Refer to

paragraph 103.

15. Expense Reduction 

Percentage

Percentage amount used to determine the percentage amount of 

reduction in approved revenue, if applicable. If the result of item 14 is 

equal to or greater than .700, enter 1.000. If the result of item 14 is less 

than .700, subtract the result of step 14 from .700. The result must not 

be less than zero. Refer to paragraph 103.

16. Expense Reduction 

Factor

Percentage amount used to reduce the Approve Revenue, if applicable. 

If item 15 equals 1.000, enter 1.000. Otherwise enter the result of 

subtracting the item 15 from 1.000.

17. Approved Revenue Approved revenue for the policy year. Enter amount from item 21b on 

the Farm Operation Report.

18. Approved Revenue 

Adjusted for 

Expenses Not 

Incurred

Approved Revenue adjusted for expenses not incurred. Multiply item 

16 by item 17. Round to the nearest whole dollar.

19. Coverage Level Coverage level elected by insured.

20. Insured Revenue The amount of revenue insured under WFRP. Enter result of item 18 

by item 19. Round to nearest whole dollar.

21. Other Indemnities The total of all indemnities received from insurance policies not 

authorized by the Act.

22. Deductible The amount of revenue not insured by the WFRP policy. Enter the 

result of subtracting approved revenue times coverage level from the 

approved revenue. Item 17 - (item 17 x coverage level).

23. Deductible Adjusted 

for Expenses not 

Incurred (22 x 16)

The amount of revenue not insured by the WFRP policy adjusted for 

expenses not incurred, if applicable. Enter the result of multiplying 

item 22 by item16.

24. RTC Adjustment The amount of indemnities from insurance policies not authorized by 

the Act in excess of the deductible to be included as revenue to count. 

If item 23 is equal to or greater than item 21, enter “0.” If item 23 if 

less than item 21, enter the result of subtracting item 23 from item 21.

25. Allowable Revenue 

for Policy Year

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.

26. Inventory 

Adjustment

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.
November 2018 FCIC -18160 164

Exhibit 16

Claim for Indemnity Form (Continued)

A. Required Elements Description (continued)

Item Required Elements Description

27. Accounts Receivable 

Adjustment

Total dollar amount of adjustments made for policy year for accounts 

receivable on Accounts Receivable, Payable, and Prepaid Expenses

Report. Enter the amount from item 10 on the Accounts Receivable, 

Payable, and Prepaid Expenses Report. This amount may be positive 

or negative.

28. Market Animal and 

Nursery Adjustment

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.

29. All other 

Adjustments

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 and any other 

Federal program payments;

(4) net gains from commodity hedging; and

(5) the amount in item 24 (indemnities from other insurance policies 

not authorized under the Act that exceed the deductible.)

Exceptions: Do not include:

1. ARC/PLC payments;

2. NAP payments;

3. Replant payments; or

4. 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
November 2018 FCIC -18160 165

Exhibit 16

Claim for Indemnity Form (Continued)

A. Required Elements Description (continued)

Item Required Elements Description

30. Revenue-to-Count 

(25+26+27+28+29)

Revenue-to-count 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.

31. Revenue Loss Dollar amount of revenue loss for the policy year. Enter the result item 

20 minus item 26.

32. Narrative 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.

33. Date Policy Year 

IRS Federal Taxes 

Filed:

Month, day, and year the insured’s farm tax forms were sent to the IRS 

for the policy year.

34. Similar Damage on 

Other Farms in the 

Area?

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.”

35. Assignment of 

Indemnity?

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.”

36. Has the insured 

received a NAP 

payment from FSA?

Enter “Yes” if the insured received a NAP payment from FSA, 

otherwise enter “No.” If the answer is “Yes,” refer to paragraph 124.

The following required entries are not illustrated on the Claim for Indemnity Report example 

below.

37. Applicant/Insured’s 

Signature and Date:

Insured signature and date.

38. AIP Representative 

Signature and Date

AIP representative’s signature and date.

Refer to exhibit 5 for required certification and other statements.
November 2018 FCIC -18160 166

Exhibit 16

Claim for Indemnity Form (Continued)

B. Example Claim for Indemnity Form

The following is provided as an example only. AIPs must develop a Claim for Indemnity Form using the required elements and statements.

CLAIM FOR INDEMNITY FORM

1. Policy Year:

2019

2. State/County:

MI / Bay

5. Insured Information:

I.M. Insured Person Type:

Box 1 Individual

Anytown, USA, 11111

Phone: 999.999.9999 SSN: xxx.xx.xxxx

6. Agency Information: Agent Code: 

XX

I.M. Agent 

Box 2

Anytown, USA 11111

Phone: 111.111.1111

7. Companion Policy(s)

NONE

3. Policy 

Number:

xxxxxxxxxx

4. Claim 

Number:

xxxxxxx

8. Date of Damage:

July 2019

9. Cause of Damage:

Drought

10. Primary Cause (%):

100

11. Date(s) of Notice:

8/1/2019

CALCULATION OF CLAIM

12. Allowable 

Expenses for 

Policy Year

13. Approved 

Expenses 

14. Expense 

Percentage

(12/13)

15. Expense 

Reduction 

Percentage

16. Expense 

Reduction 

Factor

17. Approved 

Revenue

18. Approved 

Revenue 

Adjusted for 

Expenses Not 

Incurred

(16 x 17)

19. 

Coverage 

Level

20. Insured Revenue

(18 x 19)

$95,450 $107,120 .891 1.000 1.000 $160,750 $160,750 85% $136,638

21. Other 

Indemnities

$9,000 22. Deductible $24,112 23. Deductible Adjusted for 

Expenses not Incurred (22 x 16)

$24,112 24. RTC 

Adjustment

0

25. Allowable 

Revenue for Policy 

Year

26. Inventory 

Adjustment

27. Accounts 

Receivable 

Adjustment

28. Market Animal and 

Nursery Adjustment

29. All Other 

Adjustments

30. Revenue-toCount

(25+26+27+28+29)

31. Revenue Loss

(20 – 30)

$99,060 -$500 $0 -$7,750 $30,075 $120,885 $15,753

32. Narrative: Item 29 is the sum of MPCI indemnity and uninsured cause of loss revenue adjustment.

33. Date Policy Year IRS Federal Income Taxes Filed: 

4/15/20

34. Similar Damage on Other Farms in the Area? YES 35. Assignment of Indemnity? NO

36. Has the insured received a NAP payment from 

FSA? No
November 2018 FCIC -18160 167

Exhibit 17

Inventory Valuation Guidelines

A. 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 4 for units of 

measure, abbreviations, and the numeric code for RMA processing.

B. 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.

C. 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) 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.

(2) 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.

D. 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.
November 2018 FCIC -18160 168

Exhibit 17

Inventory Valuation Guidelines (Continued)

E. 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) actual price received if the commodity is sold prior to the end of the insurance period; 

or

(b) 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.

(2) For claims purposes, beginning and ending inventories will be valued at the:

(a) actual price received if the commodity is sold prior to the time the claim is finalized; or

(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.

Example: 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.
November 2018 FCIC -18160 169

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 Farm Operation Report. Refer to exhibit 2 for the definition of expected value.

A. Determinations

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: 

(1) The date the Intended Farm Operation Report is submitted for commodities on the Intended 

Farm Operation Report;

(2) The date the Revised Farm Operation Report is submitted for commodities that are different 

than those submitted on the Intended Farm Operation Report (expected values will be 

carried forward from the Intended Farm Operation Report for commodities on the Intended 

Farm Operation Report);

(3) The date of planting for commodities that were planted and reported after the Revised Farm 

Operation Report date and for which a late revision is allowed by the AIP; or

(4) 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.

The insured cannot increase the expected value of a commodity on the Farm Operation Report 

after they have submitted their Intended Farm Operation Report (unless a marketing contract is 

applicable).

Source documents, if not required and submitted with the application, must be available to 

substantiate those values and support the yields and prices in the event of a claim.

B. 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 Farm Operation Report. An 

expected value per unit of measure, such as bushels, pounds, tons, boxes, etc., must be 

determined for each commodity listed. Refer to Exhibit 4 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 Farm Operation Report 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):

(a) different practice, type or variety of the same commodity;
November 2018 FCIC -18160 170

Exhibit 18

Expected Value and Yield Guidelines (Continued)

B. Expected Value (continued)

(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: 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.

(2) Required Adjustments in Expected Value

(a) 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.

(3) Required Adjustments in Expected Value (continued)

(b) If adjustments to the expected value for a commodity or line on the Farm Operation 

Report 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.

(4) 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.
November 2018 FCIC -18160 171

Exhibit 18

Expected Value and Yield Guidelines (Continued)

B. Expected Value (continued)

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.

(5) Methods for Determining Expected Values

The expected value on the Farm Operation Report 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 table provides the methods and sources for determining and reviewing 

expected values for commodities, in order of priority:

IF the commodity ... THEN use ...

is under a marketing contract the price contained in the marketing contract.

Refer to subparagraph A(5) for more information.

is produced and sold during the current 

insurance period, but prior to the time the 

Intended Farm Operation Report is 

completed

The actual sale price the commodity was sold for.

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 Intended Farm Operation Report 

being completed

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):

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.
November 2018 FCIC -18160 172

Exhibit 18

Expected Value and Yield Guidelines (Continued)

B. Expected Value (continued)

IF the commodity ... THEN use ...

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 Intended Farm Operation Report 

being completed (continued)

***

Example: 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, less local basis, where 

the insured normally sells the commodity. These 

prices may include post-production costs that must 

be removed.

Example: The FCIC published price for potatoes is 

$15.00 per hundredweight. The postproduction costs are $5.00 per 

hundredweight. The price the insured 

can expect to receive is $10.00 per 

hundredweight.

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.

The average new crop price offered by at least two 

commercial buyers, one selected by the insured and 

one by the AIP

Prices from a reliable disinterested third-party 

source that the AIP approves. Refer to 

subparagraph A(6)(b). These prices may include 

post-production costs that must be removed.

is not under a marketing contract to be 

sold at a specified price, has not been 

sold during the insurance period prior to 

the Intended Farm Operation Report 

being completed, and no disinterested 

third-party source exists

The average price the insured received for the three 

most recent years.

Note: The AIP may adjust the three-year average 

to reflect local market trends as stated in 

subparagraph A(4).

is not under a marketing contract to be 

sold at a specified price, has not been 

sold during the insurance period prior to 

the Intended Farm Operation Report 

being completed, and no acceptable price

source exists

Zero as the expected value and all revenue will be 

considered revenue-to-count for claim purposes.
November 2018 FCIC -18160 173

Exhibit 18

Expected Value and Yield Guidelines (Continued)

B. Expected Value (continued)

(6) Marketing Contract Price

(a) 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).

(7) Sources of Expected Values

(a) 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 insured’s three-year average price, the AIP will not agree to using 

the insured’s three year average 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;
November 2018 FCIC -18160 174

Exhibit 18

Expected Value and Yield Guidelines (Continued)

B. Expected Value (continued)

(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;

(iv) 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 

Intended Farm Operation report the following March, the AIP will not agree to 

using the FCIC published price to determine the expected value; and

(v) Must be recorded on the Expected Yield and Value Source Document 

Certification Worksheet.

(vi) Must be verifiable and if not submitted with the Expected Yield and Value 

Source Document Worksheet, must be available for review by the AIP at claim 

time.

(b) 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; and

(iv) Marketing Cooperative Reports.

(v) Futures Market Prices for the month of harvest with basis removed to adjust to 

the local market basis

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.

C. 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 Farm Operation Report. 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.
November 2018 FCIC -18160 175

Exhibit 18

Expected Value and Yield Guidelines (Continued)

C. Expected Yield (continued)

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 Farm Operation Report 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, a separate line 

should be used on the Farm Operation Report and the Expected Value and Yield Source 

Document Certification Worksheet for each yield or a weighted average yield used and 

documented for the entire commodity by rate code. The yield reported on your Farm 

Operation Report 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 or beginning production of certified 

organic commodities) or production method used during the insurance period; and 

(d) in the case of perennials consider:

(i) 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;

(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.

Important: 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.
November 2018 FCIC -18160 176

Exhibit 18

Expected Value and Yield Guidelines (Continued)

C. Expected Yield (continued)

The following table provides the methods and sources for determining and reviewing expected 

values for commodities:

IF the commodity 

is ...

AND ... THEN the expected yield...

insured by another 

policy offered 

under the Act that 

provides 

individual yield 

coverage in the 

county where the 

commodity will be 

produced

the insured:

(1) 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

(2) 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 wholefarm history period does 

reflect the yield the insured 

can expect to produce during 

the insurance period.

will be that policy’s average 

approved yield for all units on the 

farm’s policy offered under the Act 

that provides individual yield 

coverage.

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. Actual yield 

data under the new practice must be 

provided and serve as the base for 

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.

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.

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 Intended Farm 

Operation Report is submitted.
November 2018 FCIC -18160 177

Exhibit 18

Expected Value and Yield Guidelines (Continued)

C. Expected Yield (continued)

IF the commodity 

is ...

AND ... THEN the expected yield...

not insured under 

an individual yield 

coverage policy

(1) has been produced on the 

insured’s farm operation 

during the whole-farm history 

period, including the lag year;

(2) the insured has at least three 

years of production history of 

the commodity in their wholefarm history period, including 

the lag year; and

(3) the insured provides yield 

records for all years they 

produced the commodity 

during the whole-farm history 

period, including the lag year.

will be the average yield produced 

on the insured’s farm operation 

during the whole-farm history 

period, including the lag year, if 

available when the Intended Farm 

Operation Report is submitted.

(1) has been produced on the 

insured’s farm operation; and

(2) the insured does not have at 

least three years of production 

history within the whole-farm 

history period, including the 

lag year; and

(3) the insured provides yield 

records for all years within the 

whole-farm history period,

including the lag year, if 

available when the Intended 

Farm Operation Report is 

submitted, for which they do 

have production history.

will be based on the average yield 

produced on the insured’s farm 

operation as determined by the AIP:

(1) using the provided yield 

records for production history 

within the whole-farm history 

period, including the lag year; 

and

(2) for the years within the 

whole-farm history period, 

including the lag year, the 

insured has no production 

history, or no yield records are 

provided, a yield that best 

reflects what the insured’s 

farm operation can expect to 

produce from the most 

applicable following sources 

for the insured’s farm 

operation:
November 2018 FCIC -18160 178

Exhibit 18

Expected Value and Yield Guidelines (Continued)

C. Expected Yield (continued)

IF the commodity 

is ...

AND ... THEN the expected yield...

not insured under 

an individual yield 

coverage policy

(continued)

(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:

(i) university yield 

trial data; or

(ii) crop budget 

reports

has not been produced on the 

insured’s farm operation

will be based on the average yield, 

as determined by the AIP, using the 

three most recent years, including 

the lag year, obtained 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;
November 2018 FCIC -18160 179

Exhibit 18

Expected Value and Yield Guidelines (Continued)

C. Expected Yield (continued)

IF the commodity 

is ...

AND ... THEN the expected yield...

not insured under 

an individual yield 

coverage policy

(continued)

(2) Yields published or used by 

other USDA programs (e.g., 

yields used to establish NAP 

coverage); or

(3) Yield information provided by 

participants in the 

Cooperative Extension 

System, or a successor 

organization that does not 

include:

(a) university yield trial 

data; or

(b) crop budget reports

an expected yield cannot be 

established

will be zero.

D. 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) 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:

(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.

(b) a yield consistent with the amount the insured can expect to produce on their farm 

operation if the yield:
November 2018 FCIC -18160 180

Exhibit 18

Expected Value and Yield Guidelines (Continued)

(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.

(c) 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.

(2) If the AIP determines the error in reporting the price or yield was inadvertent the AIP will 

modify the Revised Farm Operation Report 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: A simple statement from the insured stating the error or omission was 

inadvertent is not sufficient to prove the error or omission was inadvertent.
November 2018 FCIC -18160 181

Exhibit 19

Direct Marketing Sales Records

The following forms are examples only.

Estimated Daily Commodity Receipts

1. INSURED’S NAME 2. DATE

I.M. INSURED JUNE 11, 2019

3. NAME OF MARKET 4. TOTAL CASH RECEIPTS

FARMERS MARKET $524.00

5. CROP 6. ESTIMATED PERCENT 

OF TOTAL CASH 

RECEIPTS

7. REVENUE PER CROP 

APPLES 15% $78.60

BEANS 30% $157.20

CARROTS 40% $209.60

POTATOES 15% $78.60

8. TOTAL 100% $524.00

9. Remarks
November 2018 FCIC -18160 182

Exhibit 19

Direct Market Sales Records (Continued)

DAILY MARKET RECORD

1. Insured’s Name 2. Date

I.M. Insured June 11, 2019

3. Name of Market 4. Total Cash Receipts

Anytown Farmers Market $620.00

5. 

Commodity

6. Amount 

Taken To 

Market

7. Amount 

Returned 

Home

8. Amount 

Sold

9. Today’s 

Price

10. Revenue 

By 

Commodity

Apples 100 Lbs. 25 Lbs. 75 Lbs. $1.00 $75.00

Beans 100 Lbs. 15 Lbs. 85 Lbs. $2.00 $170.00

Carrots 100 Lbs. 31 Lbs. 69 Lbs. $3.00 $207.00

Red Potatoes 100 Lbs. 4 Lbs. 96 Lbs. $0.75 $72.00

White 

Potatoes

100 Lbs. 4 Lbs. 96 Lbs. $1.00 $96.00

11. TOTAL $620.00

12. Remarks:
November 2018 FCIC -18160 183

Exhibit 20

Expected Value and Yield Source Document Certification Worksheet

A. Required Elements Description

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

Item Required Element Standard

1. Name The name of the insured as it appears on the application.

2. Policy Number The insured’s assigned policy number.

3. Policy Year: The current policy year. Includes beginning and ending month of fiscal 

year if insured is an early or late fiscal year filer.

4. Agency 

Information: 

The name, address, telephone number, and code number of the agent that 

provides insurance service to the insured.

Part 2 – Commodity Information

5. Commodity Enter the name of the insured commodity and commodity code

6. Commodity Code Enter the commodity code for the intended commodity listed in the AD

7. Rate Code Enter the rate code for the intended commodity listed in AD

8. Practice Enter the practice, if applicable.

9. Type Enter the type of the commodity, if applicable.

10. Variety Enter the variety of the commodity, if applicable.

11. Unit of Measure Enter the unit of measure consistent with how the commodity is 

marketed. 

12. Expected Yield

***

Enter the expected yield per method of establishment the producer can 

expect during the insurance period. Refer to exhibit 18.

13. Source

***

Identify the source used to determine the expected yield. Insureds must 

provide verifiable documentation in accordance with section 18 of the 

policy for the expected yield certified on this worksheet at the time the 

Intended Farm Operation Report is submitted or the date the Revised 

Farm Operation Report is submitted or revised if the commodity was not 

on the Intended Farm Operation Report. If not required to be submitted 

with the Expected Yield and Value Source Document Certification 

Worksheet, verifiable documents must be available for review by the AIP 

at claim time.

14. Expected Value Enter the expected value per method of establishment the producer can 

expect to receive during the insurance period. The expected values must 

be determined using Section 18 of the WFRP policy and Exhibit 18 of 

this handbook.

15. Source Identify the source used to determine the expected value. The source 

must be 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 yield certified on this worksheet at the time the 

Intended Farm Operation Report is submitted or the date the Revised 

Farm Operation Report is submitted or revised if the commodity was not 

on the Intended Farm Operation Report. If not required to be submitted 

Expected Value and Yield Source Document Certification Worksheet, 

verifiable documents must be available for review by the AIP at claim 

time.
November 2018 FCIC -18160 184

Exhibit 20

Expected Value and Yield Source Document Certification Worksheet (Continued)

A. Required Elements Description (continued)

The following required entries are not illustrated on the Expected Value and Yield Source 

Document Certification Worksheet example below.

16. Applicant/Insured 

Signature and Date

Applicant/Insured Signature and Date

17. AIP Representative 

Signature and Date

AIP Representative Signature and Date

Refer to exhibit 5 for required certification and other statements.
November 2018 FCIC -18160 185

Exhibit 20

Expected Value and Yield Source Document Certification Worksheet (Continued)

B. Example Expected Value and Yield Source Document Certification Worksheet

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.

Expected Value and Yield Source Document Certification Worksheet

Part 1 - Producer Information

1. Name 2. Policy Number 3. Policy Year 4. Agency Information

I.M. INSURED XXXXXXXXX YYYY/Mar. – Feb. I.R. AGENT XXXXX

Part 2 – Commodity Information

5. Commodity 

Name

6. Commodity 

Code

7.Rate 

Code 8. Practice 9. Type 10. Variety 11. Unit ofMeasure

12. Expected

Yield 13. Source 14. Expected Value 15. Source

Corn 04100 1002 NIRR Grain NA Bushels 180.0 MPCI Average

yield $3.75 FCIC published price less local basis

Soybeans 008100 1008 NIRR NA NA Bushels 75.0 MPCI Average

Yield $9.56

Local cash bid price –

Lewiston Elevator, October 

Delivery

Oats 001600 0915 NIRR Certified

Organic NA Bushels 120.0 MPCI AverageYield 6.65 Market Contract – Lewiston Organic Coop

Bulls 082300 0823 Registered Black 

Angus 2-Year-Old Head 10 NA $3000.00

3 yr. producer historic

average sales records 2016-

2018.

Calves 080000 0800 Fall Calves Steers/

Heifers NA Lb. 600

3-year

Average Sale 

Weight 2016-

2018

$1.35/lb. CME Cattle Futures Market 

Oct 2018 Quote