United States 

Department of 

Agriculture

Federal Crop

Insurance

Corporation

FCIC-18160-1 (10-2022)

WHOLE-FARM 

REVENUE 

PROTECTION PILOT 

HANDBOOK

2023 and Succeeding Policy

Years
THIS PAGE IS INTENTIONALLY LEFT BLANK
October 2022 FCIC-18160-1 TP 1 

UNITED STATES DEPARTMENT OF AGRICULTURE

FARM PRODUCTION AND CONSERVATION

RISK MANAGEMENT AGENCY

KANSAS CITY, MO 64133

TITLE: WHOLE-FARM REVENUE PROTECTION PILOT 

HANDBOOK

NUMBER: FCIC–18160-1

OPI: Product Management

EFFECTIVE DATE: 2023 and Succeeding Policy Years ISSUE DATE: October 28, 2022

SUBJECT:

Provides the procedures and instructions for the 

Whole-Farm Revenue Protection plan of insurance

APPROVED:

/s/ Richard H. Flournoy 

Deputy Administrator for Product Management

REASON FOR ISSUANCE

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

SUMMARY OF CHANGES

Listed below are the changes to the 2023 FCIC-18160-1 Whole-Farm Revenue Protection Pilot Handbook with 

significant content change. All changes, and additions are highlighted. Minor changes and corrections are not 

included in this listing. *** used throughout the handbook indicate where major deletions occurred.

Reference Description of Change

Throughout Updated to meet the new External Handbooks Standards; including renumbering when 

applicable (See crosswalk chart below), updating references, and several editorial 

edits.

Throughout Removed references and procedures related to Allowable and Approved Expenses.

Subparagraph 1C Page 1: Added required civil rights language.

Subparagraph 1E Page 2: Added duration of handbook subparagraph.

Subparagraph 1F Page 2: Removed the address associated with RMA as it is not applicable.

Subparagraph 3A Page 6: Added example for late fiscal year filers electing Micro Farm.

Subparagraph 3B Page 7: Added language regarding retention of farm tax farm expense records.

Subparagraph 7(2) Page 8: Added language regarding post-production expenses related to accrual 

accounting method.

Subparagraph 21(3) & 

(5)

Page 12: Updated language to the new $17 million insured revenue limit for WFRP and 

$350,000/$400,000 for Micro Farm, respectively.

Paragraph 45 Page 25: Removed all language related to Allowable Expenses and the Allowable 

Expense Worksheet.

Subparagraph 48(2) Page 28: Added language requiring the reporting of commodities not insured by 

another policy on the Yield and Revenue Report.

Paragraph 49 Pages 33-38: Reformatted and renumbered the RFOR procedures.

Subparagraph 49(9)(f) Page 35-36: Updated Example 3 to reflect edits to procedures in (f).

Subparagraph 49(9)(g) Pages 34-36: Revised procedures for the 40% reduction of Expected Revenue for 

commodities not planted due to insured COLs on the RFOR.

Subparagraph 49(10) Page 38: Revised language and example for the new $17 million insured revenue limit.

Subparagraph 71E Page 51: Reformatted and renumbered the Expanding Operation calculation 

procedures.
October 2022 FCIC-18160-1 TP 2 

SUMMARY OF CHANGES (Continued)

Reference Description of Change

Paragraph 72 Page 58: Removed all language related to Allowable and Approved Expenses.

Paragraph 74 Page 62: Removed language related to Accounts Payable and Prepaid Expenses.

Paragraph 102 Page 72: Removed language related to adjustments to expenses.

Subparagraph 107E Page 77: Removed procedures for Expense Reduction Factor calculations.

Subparagraph 123(3) Page 79-80: Removed language referencing Adjusted Approved Revenue 

calculations.

Subparagraph 161(4)(a) Page 99: Added language requiring the removal of cost of commodities purchased 

for resale from expected revenue under Micro Farm.

Exhibit 1 Page 101: Added GSH and OPI acronym.

Exhibit 2 Pages 102-111: Removed definitions for Allowable Expenses, Approved Expenses, 

Average Allowable Expenses, Beginning Accounts Payable, Ending Accounts Payable, 

Expense Reduction Factor, and Prepaid Expenses.

Added “elevator” to the list of potential verifiable records.

Exhibit 3N Pages 121-122: Removed Allowable Expense Worksheet and added standards for 

Yield and Revenue Report.

Exhibit 4 items 9a-e, 10c, 

& 16c

Pages 126-128: Removed requirements to document expenses.

Exhibit 6 Pages 135-137: Renamed report to Accounts Receivable Report and removed Parts 3 

& 4.

Exhibit 7 item 8 & 11 Page 139: Added language requiring reporting of commodities on hand at the 

beginning of the tax year but sold prior to insurance attachment for the purpose of 

adjusting the revenue at claim time.

Exhibit 8 items 22a-b Page 151: Removed requirement to report Approved Expenses.

Exhibit 10 Pages 158-160: Added new Yield and Revenue Report for documentation of required 

information related to commodities not insured by another FCIC policy.

Exhibit 15 items 12-16, 

18, & 23

Pages 174-175: Removed requirements to calculate the Expense Reduction Factor 

and Adjusted Approved Revenue.

Exhibit 18B & C Page 185-195: Reformatted and renumbers the Expected Value and Yield 

procedures.

Exhibit 18B(4)(c)(ii) Page 185-187: Added language clarifying considerations to made if using the FCIC 

price as expected value with an example.

Exhibit 18C(3) Page 190: Added requirement to document yield and revenue history for 

commodities not insured by another FCIC policy on the Yield and Revenue Report.

The following is a crosswalk table for the converted 2023 WFRP Pilot Handbook.

Old Exhibit New Exhibit Old Exhibit New Exhibit

Exhibit 1 Exhibit 1 Exhibit 11 Exhibit 11

Exhibit 2 Exhibit 2 Exhibit 12 Exhibit 12

Exhibit 3 Exhibit 19 Exhibit 13 Exhibit 13

Exhibit 4 Exhibit 20 Exhibit 14 Exhibit 10

Exhibit 5 Exhibit 3 Exhibit 15 Exhibit 14

Exhibit 6 Exhibit 4 Exhibit 16 Exhibit 15

Exhibit 7 Exhibit 5 Exhibit 17 Exhibit 17

Exhibit 8 Exhibit 6 Exhibit 18 Exhibit 18

Exhibit 9 Exhibit 7 Exhibit 19 Exhibit 16

Exhibit 10 Exhibit 8 Exhibit 20 Exhibit 9
October 2022 FCIC-18160-1 TP 3 

RISK MANAGEMENT AGENCY WHOLE-FARM REVENUE PROTECTION

CONTROL CHART

TP

Page(s)

TC

Page(s)

Text

Page(s)

Exhibit 

Page(s) Date DirectiveNumber

Current Index 1-4 1-4 1-100 101-198 10-2022 FCIC-18160-1

FILING INSTRUCTIONS

This handbook replaces FCIC-18160, Whole-Farm Revenue Protection Pilot Handbook, dated December 17, 

2021, and October 17, 2022. This handbook is effective for the 2023 and succeeding policy years.
October 2022 FCIC-18160-1 TP 4 

RESERVED
October 2022 FCIC-18160-1 TC 1 

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK

TABLE OF CONTENTS

PART 1: GENERAL INFORMATION AND RESPONSIBILITIES............................................................................ 1

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

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

3 Access to Commodities and Records.............................................................................................. 6

4 Document Origination .................................................................................................................... 8

5 Duplicate WFRP Policies ................................................................................................................. 9

6 Tax Years......................................................................................................................................... 9

7 Accounting Methods....................................................................................................................... 9

8-20 (Reserved) ..................................................................................................................................... 10

PART 2: WFRP POLICY INFORMATION ....................................................................................................... 11

21 Eligibility........................................................................................................................................ 11

22 Pre-Acceptance Inspections.......................................................................................................... 14

23 Application .................................................................................................................................... 14

24 Vertically Integrated and Related Tax Entity ................................................................................ 17

25-40 (Reserved)....................................................................................................................................... 17

PART 3: COVERAGE AND REPORTS ............................................................................................................ 18

Section 1 Coverage Information and Required Reports................................................................... 18

41 Basic Information and Commodity Count .................................................................................... 18

42 Coverage Levels ............................................................................................................................ 22

43 Replant Payments......................................................................................................................... 23

44 Allowable Revenue and Allowable Revenue Worksheet.............................................................. 23

45 (Reserved)..................................................................................................................................... 26

46 Whole-Farm History Report.......................................................................................................... 26

47 Use of a Different Person’s Tax Returns....................................................................................... 27

48 Intended Farm Operation Report................................................................................................. 29

49 Revised Farm Operation Report ................................................................................................... 32

50 Final Farm Operation Report........................................................................................................ 40

51 IRS Tax Forms and Verifiable Records and/or Direct Marketing Sales Records........................... 40

52 WFRP Database............................................................................................................................. 43

53 Premium Calculation and Subsidy ................................................................................................ 44

54-70 (Reserved)....................................................................................................................................... 44

Section 2 Revenue Calculations...................................................................................................... 45

71 Revenue ........................................................................................................................................ 45

72 (Reserved)..................................................................................................................................... 59

73 Inventory....................................................................................................................................... 60

74 Accounts Receivable Report......................................................................................................... 62
October 2022 FCIC-18160-1 TC 2 

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK

TABLE OF CONTENTS

PART 4: LOSS AND CLAIM INFORMATION.................................................................................................. 64

Section 1 Loss Information............................................................................................................. 64

91 Insurable Losses............................................................................................................................ 64

92 Uninsurable Losses ....................................................................................................................... 64

93 Quality Determinations................................................................................................................. 67

94 Duties in the Event of Damage or Loss......................................................................................... 67

95 Replant Payment........................................................................................................................... 69

96-100 (Reserved)..................................................................................................................................... 71

Section 2 Claim Information........................................................................................................... 72

101 Adjustments to Revenue............................................................................................................... 72

102 (Reserved)..................................................................................................................................... 73

103 Changes Occurring Within Policy Year.......................................................................................... 73

104 Changes That Occurred in Year Prior to Policy Year..................................................................... 75

105 Damage and Price Fluctuation That Occurred in the Year Prior to the Policy Year ..................... 75

106 Revenue-to-Count......................................................................................................................... 75

107 Indemnities................................................................................................................................... 77

108-120 (Reserved)................................................................................................................................... 79

PART 5: ADMINISTRATIVE PROVISIONS..................................................................................................... 80

121 Assignment of Indemnity.............................................................................................................. 80

122 Transfer of Coverage..................................................................................................................... 80

123 Other Insurance and NAP ............................................................................................................. 80

124 Commodities as Payments............................................................................................................ 81

125 Mediation, Arbitration, and Judicial Reviews of AIP Determinations.......................................... 81

126 Controlled Substance Provisions .................................................................................................. 81

127-140 (Reserved)................................................................................................................................... 82

PART 6: SPECIAL CIRCUMSTANCES ............................................................................................................ 83

141 Organically Grown Commodities.................................................................................................. 83

142 Post-Production Operations and Market Readiness.................................................................... 85

143 Animals.......................................................................................................................................... 87

144 Nursery/Greenhouse .................................................................................................................... 90

145 Commodities with Market Order Reserves.................................................................................. 92

146 Commodities Sold with Co-op Retainages.................................................................................... 93

147 Vertically Integrated Operations .................................................................................................. 95

148 Commodities Purchased for Resale.............................................................................................. 96

149 Industrial Hemp ............................................................................................................................ 97

150 Combined Direct Marketing Commodities................................................................................... 98

151-160 (Reserved)................................................................................................................................... 99
October 2022 FCIC-18160-1 TC 3 

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK

TABLE OF CONTENTS

PART 7: MICRO FARM..............................................................................................................................100

161 Micro Farm.................................................................................................................................. 100

EXHIBITS...................................................................................................................................................102

Exhibit 1 Acronyms and Abbreviations.............................................................................................. 102

Exhibit 2 Definitions ........................................................................................................................... 103

Exhibit 3 Form Standards................................................................................................................... 114

Exhibit 4 Whole-Farm History Report................................................................................................ 126

Exhibit 5 Inventory Report ................................................................................................................. 131

Exhibit 6 Accounts Receivable Report................................................................................................ 136

Exhibit 7 Market Animal and Nursery Inventory Report.................................................................... 139

Exhibit 8 Farm Operation Report....................................................................................................... 146

Exhibit 9 Expected Value and Yield Source Document Certification Worksheet............................... 156

Exhibit 10 Yield and Revenue Report................................................................................................... 159

Exhibit 11 Replant Payment Worksheet.............................................................................................. 162

Exhibit 12 Schedule F Example............................................................................................................. 165

Exhibit 13 Substitute Schedule F Example ........................................................................................... 167

Exhibit 14 Allowable Revenue Worksheet........................................................................................... 169

Exhibit 15 Claim for Indemnity Form ................................................................................................... 175

Exhibit 16 Direct Marketing Sales Records.......................................................................................... 180

Exhibit 17 Inventory Valuation Guidelines........................................................................................... 182

Exhibit 18 Expected Value and Yield Guidelines.................................................................................. 184

Exhibit 19 Method of Establishment.................................................................................................... 198

Exhibit 20 Unit of Measure .................................................................................................................. 199
October 2022 FCIC-18160-1 TC 4 

RESERVED
October 2022 FCIC-18160-1 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, including Micro Farm.

WFRP pilot provides protection against loss of revenue that the insured expects to earn or will 

obtain from commodities produced or purchased for resale during the insurance period.

All terms referenced in this handbook have the same meaning as defined in the WFRP policy or 

Micro Farm Provisions (if applicable).

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. Title VI of the Civil Rights Act of 1964

The USDA prohibits discrimination against its customers. Title VI of the Civil Rights Act of 1964 

provides that “No person in the United States shall, on the ground of race, color, or national 

origin, be excluded from participation in, be denied the benefits of, or be subjected to 

discrimination under any program or activity receiving Federal financial assistance.” Therefore, 

programs and activities that receive Federal financial assistance must operate in a nondiscriminatory manner. Also, a recipient of RMA funding may not retaliate against any person 

because they opposed an unlawful practice or policy, or made charges, testified, or participated 

in a complaint under Title VI.

It is the AIPs’ responsibility to ensure that standards, procedures, methods, and instructions, as 

authorized by FCIC in the sale and service of crop insurance contracts, are implemented in a 

manner compliant with Title VI. Information regarding Title VI of the Civil Rights Act of 1964 

and the program discrimination complaint process is available on the USDA public website at 

www.ascr.usda.gov. For more information on the RMA Non-Discrimination Statement see the 

DSSH.

D. Related Handbooks

The following table provides handbooks related to this handbook.
October 2022 FCIC-18160-1 2 

1 General Information (Continued)

D. Related Handbooks (Continued)

Handbook Relation/Purpose

DSSH This handbook provides the official FCIC approved form standards and procedures 

for use in the sale and service of any eligible Federal crop insurance policy; required 

statements and disclosures; and the standards for submission and review of nonreinsured supplemental policies in accordance with the SRA.

CIH This handbook provides the official FCIC approved underwriting standards for 

policies administered by AIPs for the General Administrative Regulations, Actual 

Production History Regulation Subpart G; Common Crop Insurance Policy Basic 

Provisions, and Area Risk Protection Regulations. 

GSH This handbook provides the official FCIC approved standards for policies 

administered by AIPs under the General Administrative Regulations, Common Crop 

Insurance Policy Regulations Basic Provisions, including the Catastrophic Risk 

Protection Endorsement, Actual Production History Regulation Subpart G; the Area 

Risk Protection Insurance Regulations Basic Provisions; the Stacked Income 

Protection Plan of Insurance; the Rainfall and Vegetation Index Plans; and the 

Whole-Farm Revenue Protection Pilot Policy.

E. Duration of Handbook

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

F. Procedural Questions

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

(a) to the AIP; then, if not resolved,

(b) through appropriate channels within the AIP to the applicable RMA RO; then if 

not resolved,

(c) through appropriate channels within the AIP to RMA’s PASD by e-mail at

rma.wfrp@usda.gov. ***

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

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

identify the error and provide a proposed correction. ***

2 Responsibilities

A. RMA Responsibilities

RMA will:

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

WFRP program; and
October 2022 FCIC-18160-1 3 

2 Responsibilities (Continued)

A. RMA Responsibilities (Continued)

(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 and the Micro 

Farm Provisions (if applicable);

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

in the WFRP policy and the Micro Farm Provisions (if applicable), this handbook, and 

other documents issued by RMA;

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

(5) instruct the insured of their responsibilities in accordance with the WFRP policy, Micro 

Farm Provisions (if applicable), and Subparagraph 2D; 

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

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

in the WFRP policy, Micro Farm Provisions (if applicable), and this handbook;

(8) notify insured of changes following the AIP underwriting reviews;

(9) update revenue databases for carryover insureds;

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

(a) verify the revenue history;

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

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

(d) notify the insured of policy termination if they are indebted to the ceding AIP; 

and

(e) notify the ceding AIP when it has accepted the transferred policy.

(11) if necessary, make farm visits to determine beginning and ending inventories, such as 

bin or storage facility measurements, and pre-acceptance inspections;

(12) ensure all forms and reports required under the WFRP policy or the Micro Farm 

Provisions (if applicable) are properly signed and dated by the insured;
October 2022 FCIC-18160-1 4 

2 Responsibilities (Continued)

B. AIP Responsibilities (Continued) 

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

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

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 for each year in the whole-farm history period 

using associated tax returns, applicable worksheets, and supporting documentation; 

***

(4) review all reports for completeness and accuracy, and insure all applicable signatures 

and dates are provided;

(5) obtain all records and documentation required for program participation;

(6) provide all applicable forms and records to the AIP; and

(7) refer requests to the AIP for farm visits to determine beginning and ending inventories, 

such as bin or storage facility measurements, and pre-acceptance inspections.

D. Insured’s 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 IFOR for the insurance period. 

Information from other federal crop insurance plans of insurance the insured has may 

also be required by the AIP to use in underwriting the WFRP policy. This may include 

actual production histories and acreages.

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

141. 
October 2022 FCIC-18160-1 5 
October 2022 FCIC-18160-1 6 

2 Responsibilities (Continued)

D. Insured’s Responsibilities (Continued)

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

Refer to Subparagraph 48(6). 

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

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

(8) Complete the final production report on the FFOR by the earlier of the time a claim is 

submitted or the SCD of the subsequent policy year.

(9) Comply with all the terms and conditions of the WFRP policy and the Micro Farm 

Provisions (if applicable).

(10) Provide completed Schedule F or Substitute Schedule F form along with the original 

farm tax forms and verifiable and/or direct marketing sales records for consideration by 

the AIP for insurance, if an insured has short tax years in the farm history and wants to 

insure under WFRP.

(11) Provide any records or information requested by the AIP for underwriting or loss 

adjustment of the policy.

(12) Provide information to the AIP regarding insurance obtained from any other AIP or from 

any FSA office (e.g., NAP) on commodities covered by WFRP. The information provided 

must include the date such insurance was obtained.

Note: If the insured fails to timely submit any required information, or the AIP is unable to 

verify the information that was submitted, the AIP will deny any indemnity, or 

replant payment and the insured will still be required to pay the premium due.

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.
October 2022 FCIC-18160-1 7 

3 Access to Commodities and Records (Continued)

A. Record Retention (Continued)

Example 1: The whole-farm history period for a calendar or early fiscal year filer for the 2023 

policy year is 2017, 2018, 2019, 2020, and 2021 (2022 is a lag year and is not 

included in the 2023 whole-farm history period). Verifiable records for 2017 

through 2021, all years in the whole-farm history period, and for 2023 must be 

maintained for three years after the insurance period for 2023 ends or the date 

of final payment of indemnity for the 2023 policy year, whichever is later.

Example 2: The whole-farm history period for a late fiscal year filer for the 2023 policy year 

are tax years 2016, 2017, 2018, 2019, and 2020 (Tax year 2021 is a lag year and is 

not included in the 2023 whole-farm history period). Verifiable records for 2016 

through 2020, all years in the whole-farm history period, and for 2023 (tax year 

2022) must be maintained for three years after the insurance period for policy 

year 2023 ends or the date of final payment of indemnity for the 2023 policy 

year, whichever is later.

Example 3: The whole-farm history period for an insured that elects Micro Farm and is a 

calendar or early fiscal year filer for the 2023 policy year with three years of tax 

records is 2020, 2021, and 2022. Verifiable records for 2020 through 2022, all 

years in the whole-farm history period, and for 2023 must be maintained for 

three years after the insurance period for 2023 ends or the date of the final 

payment of indemnity, whichever is later.

Example 4: The whole-farm history period for an insured that elects Micro Farm and is a late 

fiscal year filer for the 2023 policy year with three years of tax records is 2019, 

2020, and 2021. Verifiable records for 2019 through 2021, all years in the wholefarm history period, and for 2023 (tax year 2022) must be maintained for three 

years after the insurance period for policy year 2023 ends or the date of final 

payment of indemnity for the 2023 policy year, whichever is later.

The AIP or any employee of USDA, or any person acting for the AIP or USDA authorized to 

investigate or review any matter relating to insurance authorized under the Act may extend the 

record retention period beyond three years by notifying the insured of such extension in 

writing.

B. Accessing Records and Commodities

Within the record retention period, insureds must, upon request, provide complete verifiable 

records and/or direct marketing sales records to the AIP, any employee of USDA, or any person 

acting for the AIP or USDA authorized to investigate or review any matter relating to insurance 

authorized under the Act. Insureds must also, upon request, obtain records from any person 

who may have custody of such records, including but not limited to, FSA offices, banks, 

warehouses, gins, cooperatives, marketing associations, landlords, and accountants.

Records that may be accessed include, but are not limited to, records pertaining to the:
October 2022 FCIC-18160-1 8 

3 Access to Commodities and Records (Continued)

B. Accessing Records and Commodities (Continued)

(1) planting, replanting, inputs, production, harvest, storage, sale, shipment, and 

disposition of the insured commodities;

(2) insurable, insured, and uninsured acres;

(3) facilities;

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

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

(6) documentation supporting beginning and ending inventories, and accounts receivable; 

***

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

the insured commodities; 

(8) Expenses stated on the farm tax forms, including all forms and records supports these 

figures; and

(9) mediation, arbitration, and litigation records related to the insured and insured 

commodities.

The AIP or any employee of USDA, or any person acting for the AIP or USDA, authorized to 

investigate or review any matter relating to insurance authorized under the Act may examine 

the insured commodities at any location where such commodities may be found or maintained. 

Such commodities may be examined as often as reasonably necessary during the record 

retention period.

C. Failure to Provide Records or Access

Failure to provide access to the insured commodities on the farm, maintain or provide any 

required records, authorize access to the records maintained by third parties, or assist in 

obtaining all such records will result in a determination that no indemnity is due for the policy 

year for which the failure occurred.

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.
October 2022 FCIC-18160-1 9 

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 a person has any short tax years in their whole-farm 

history period or if their lag year is a short tax year, refer to Subparagraph 21(2)(a). 

The person’s tax year, calendar or fiscal, is used for WFRP accounting purposes. The WFRP policy year 

is designated by the calendar year that begins after the CCD (for late fiscal year filers, the policy year 

will differ from the tax year insured under this policy).

For accounting purposes, the terms beginning and ending inventories, and beginning and ending 

accounts receivable, are synonymous with the beginning and ending dates for the IRS tax year. ***

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 to the year in which revenue was earned. ***

Under the WFRP policy, including the Micro Farm Provisions, coverage is for a loss of revenue 

that insureds expect to earn or will obtain from commodities they produce or purchase for 

resale during the insurance period. The accrual accounting method, using the Inventory 

Report(s) and Accounts Receivable Report (if applicable), is used to determine what has been 

produced during the insurance period only. For the purposes of the whole-farm history period, 

allowable revenue, and post-production expenses (if applicable) will not be adjusted using the 

accrual accounting method.
October 2022 FCIC-18160-1 10

7. Accounting Methods (Continued)

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)
October 2022 FCIC-18160-1 11

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 

whole-farm history period, unless they are a carryover insured; and
October 2022 FCIC-18160-1 12

21 Eligibility (Continued)

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

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

the previous policy year, and they have fewer than five years of farm tax forms in 

their whole farm history period:

(A) The insured, if qualified as a:

1 BFR or VFR, must have at least three consecutive years of farm 

tax records in their whole-farm history period;

2 BFR or VFR in the previous policy year, must have at least four 

consecutive years of farm tax forms in their whole-farm history 

period; and

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

Example 1: A producer qualifies as a BFR in the 2023 policy year. To be 

eligible for a 2023 WFRP policy, the producer must have farm tax 

records for 2019, 2020, and 2021. The producer must have also 

earned farm revenue in 2022. 

Example 2: A producer would have qualified as a VFR in the 2022 policy year. 

To be eligible for a 2023 WFRP policy, the producer must have 

farm tax records for 2018, 2019, 2020, and 2021. The producer 

must have also earned farm revenue in 2022. 

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

If the applicant has a short-tax year(s) in their whole-farm history or their lag year is a 

short-tax year, they are not ineligible for coverage. Refer to Subparagraph 46(1). 

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

court:

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

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

(i) the individual provides evidence an insurable share exists;
October 2022 FCIC-18160-1 13

21 Eligibility (Continued)

(ii) a written statement describing the farm operation and insurable share is 

provided;

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

(iv) the court-appointed guardian or parent guarantees payment of the annual 

premium.

When a minor reaches 18 years of age, or is conferred legal majority by a court, and is 

competent to enter a legally binding contract, their existing WFRP policy is dissolved and 

a new application is required.

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

(a) at SCD the insured revenue for the policy year is greater than $17 million based on the 

IFOR; 

(b) the commodity count as determined using the IFOR is equal to one during the insurance 

period; and

(i) Potatoes are the only commodity with expected revenue that equals or exceeds 

the qualifying revenue threshold; or

(ii) Revenue protection is available for the commodity with expected revenue equal 

to or greater than the qualifying revenue threshold through another plan of 

insurance offered under the authority of the Act. Refer to Paragraph 41. 

(c) CAT coverage is elected through another plan of insurance offered under the authority 

of the Act that could provide coverage during the insurance period for any insurable 

commodity whether acreage is planted or not; or

(d) the farm operation includes any production of or revenue from controlled substances 

(refer to Paragraph 126 for controlled substance and 149 regarding Industrial Hemp).

Note: RMA is precluded from offering insurance for controlled substances 

under WFRP by the provision’s statute and regulations, including the 

Food Security Act of 1985. Commercial production of any controlled 

substances will cause the producer’s farm operation to be ineligible for 

WFRP.

(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.
October 2022 FCIC-18160-1 14

21 Eligibility (Continued)

(5) In addition to subparagraphs 21(1), (2), (3)(d), and (4), to be considered eligible for the Micro 

Farm Provisions, the insured must:

(a) have at least three years of consecutive tax records immediately preceding the policy 

year, including the lag year;

If the insured has not filed farm tax forms with the IRS for the lag year, they must 

provide a completed Substitute Schedule F Worksheet and Allowable Revenue 

Worksheet reflecting the revenue earned by their farm operation during that tax year.

(b) at SCD, have an approved revenue of $350,000 or less for their first year of coverage or 

$400,000 or less if they are a carryover insured;

(c) not be a vertically integrated operation; and

(d) not have any commodity produced on their farm operation insured by another policy 

issued under the authority of the Act, including WFRP.

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 or for any 

perennial commodity grown on a farm operation covered under the Micro Farm Provisions. For 

carryover insureds, pre-acceptance inspections are required if the policy was transferred and

documentation required by Subparagraph 23(8) was not provided by the ceding AIP.

A PAIR is required when the insured answers “YES” to the PAW question, “Has Damage (e.g., Disease, 

Hail, Freeze) Occurred to Trees/Vines/Bushes/Bog that Will Reduce the Insured Crop’s Production from 

Previous Crop Years?” If it is determined that a tree disease is present prior to insurance attaching, any 

loss of revenue due to such disease will be considered an uninsured cause of loss. The AIP may submit 

an RO determined yield request to obtain an accurate yield for the IFOR.

For the first year of insurance, a pre-acceptance inspection and applicable inspection report (i.e., PAIR) 

for the commodity (refer to CIH for procedures) must be completed before accepting an application if 

any insured commodity is damaged prior to the application being submitted. The expected revenue on 

the IFOR must be reduced to reflect the reduced revenue caused by the damage occurring before 

acceptance of the application.

If perennial commodities with production cycles exceeding 12 months are damaged, the expected 

revenue may be reduced for two or more WFRP or Micro Farm policy years and may require additional 

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

began.

23 Application

(1) An application is required. Before accepting the application, AIPs must ensure the application:
October 2022 FCIC-18160-1 15

23 Application (Continued)

(a) is for a qualifying person;

(b) contains all required information according to the WFRP policy and the Micro Farm 

Provisions (if applicable);

(c) the county listed should be the county where most of the total expected revenue is 

expected to be earned; 

(i) If no county is expected to provide most of the total expected revenue, the 

county listed should be the county with the highest amount of expected 

revenue.

(ii) Regardless of the county listed, the county with the highest expected revenue at 

the time the RFOR is submitted will be used for rating purpose.

(iii) Document the county change on the RFOR. Refer to Exhibit 8. 

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

for the tax year; and

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

The application must be rejected if all requirements in the policy for acceptance are not met. If 

an application is rejected, the original application and a letter explaining why the application 

was rejected must be sent to the applicant. 

(2) The insurance period may begin prior to the SCD and damage to commodities may occur prior 

to insurance attaching. If damage has occurred, an inspection must be performed prior to 

acceptance of the application. Refer to Paragraph 22 for information about pre-acceptance 

inspections.

(3) Completed and signed applications for WFRP must be submitted on or before the SCD for the 

producer’s tax filer type. If the SCD falls on a Saturday, Sunday, or Federal holiday, the SCD is 

extended to the next business day.

Example for Calendar Year Filer: A producer’s tax year is January 1, 2023 - December 

31, 2023. The producer’s application and all applicable 

forms must be submitted on or prior to the SCD that 

falls in 2023. 

Example for an Early Fiscal Year Filer: A producer’s tax year is August 1, 2023 - July 31, 2024. 

The producer’s application and all applicable forms 

must be submitted on or prior to the SCD that falls in 

2023. 
October 2022 FCIC-18160-1 16

23 Application (Continued)

Example for a Late Fiscal Year Filer: A producer’s tax year is September 1, 2022 - August 

31, 2023. The producer’s application and all applicable 

forms must be submitted on or prior to November 20, 

2022, SCD for the 2023 policy year.

(4) The insured must provide information to the AIP regarding insurance obtained from any other 

AIP or from any FSA office (e.g., NAP) on commodities covered by WFRP. The information 

provided must include the date such insurance was obtained.

(5) To transfer a policy from one AIP to another, the insured must request a transfer in writing on 

or before the cancellation date. The insured must complete and submit a Policy 

Transfer/Application to the assuming AIP, or the assuming AIP must complete and sign, and 

have the insured sign, a Request to Transfer a Policy including the ceding AIP’s policy number 

for the policy being transferred.

(6) If a Policy Transfer/Application is not used, an application must be completed and signed by the 

insured and the assuming AIP indicating the crop was insured in the previous policy year. The 

assuming AIP must, within 45 days after the applicable cancellation date, notify the ceding AIP 

when the transfer has been accepted and a new policy has been issued.

(7) An insured may transfer a policy only once per insurance period between the AIPs. A transfer 

within an AIP from one policy issuing company to another is not considered a transfer for this 

purpose.

(8) The assuming AIP should notify the insured the policy will be terminated if the insured is 

indebted to the ceding AIP.

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

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

(b) Copy of the current year’s FOR.

(c) Copy of the PAW, if applicable.

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

(10) AIPs are required to transmit premium, loss, and revenue data to RMA. RMA maintains this 

data in its databases.

(11) For the initial policy year, the AIP will notify the insured if the whole-farm historic average 

revenue determined to be correct is less than 95 percent of the whole-farm historic average 

revenue stated on the WFHR submitted by the insured. If the AIP provides the insured such 

notice:

(a) the insured may submit a written request for reconsideration;
October 2022 FCIC-18160-1 17

23 Application (Continued)

(b) such requests must be made not later than 30 days after the date the AIP provided such 

notice; and

(c) if the insured does not request reconsideration, the AIP will revise the insured’s WFHR 

to reflect the amount of allowable revenue the AIP determines to be correct for each 

year in the insured’s whole-farm history period. ***

(12) The WFRP policy may not be cancelled during the first year. The insured or the AIP may cancel 

a WFRP policy for any policy year following the first year by giving a signed notice to the other 

party on or before the cancellation date. A request made by the insured to cancel the policy 

after the cancellation date will be effective the following policy year.

(13) Notwithstanding Subparagraph 23(12) above, if the insured is a carryover insured, the AIP will 

cancel their policy, effective as of the cancellation date, if the AIP does not receive the insured’s 

completed WFHR and IFOR as required under section 15 of the WFRP policy on or before the 

SCD or the insured elects coverage under the Micro Farm Provisions for the current policy year.

(14) When an insured changes person type, such as changing from an individual to a corporation, a 

new application must be submitted by the new person on or before the SCD. Coverage will 

continue until the end of the policy year when a change in person type occurs after insurance 

has attached for the year. However, the policy will be automatically cancelled as of the 

cancellation date, and a new application and associated documents must be submitted by the 

applicable SCD to continue coverage under WFRP.

The insured must be the same person as the person designated on the United States Income 

Tax form for the year of insurance and all the years in the whole-farm history period.

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. The 

Market Certification is not applicable to WFRP and Micro Farm.

25-40 (Reserved)
October 2022 FCIC-18160-1 18

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 

(excluding the combined direct marketing commodity code) on the FOR is counted once 

to determine the number of commodities, regardless of the number of times the 

commodity code is used;

Example: 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 FOR (excluding the 

combined direct marketing commodity code) 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;
October 2022 FCIC-18160-1 19

41 Basic Information and Commodity Count (Continued)

(b) determine the number of the commodities or intended commodities in (a) that have 

expected revenue equal to or greater than the qualifying revenue threshold. If one of 

these commodities is combined direct marketing, count combined direct marketing as 

two commodities for the purpose of this determination;

(c) sum the expected revenue amounts from the result of (b) and subtract the result from 

the Total Expected Revenue;

(d) divide the result of (c) by the qualifying revenue threshold to determine the number of 

additional commodities to count (use whole numbers and do not round); and

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

Example 1: At SCD, the applicant reported six (6) commodities on the IFOR (corn, mums, 

geraniums, pigs, carrots, cucumbers, and squash) that will be produced with a 

Total Expected Revenue of $170,250. Mums and geraniums have the same 

commodity code so the expected revenue for each are added together and 

count as one commodity.

The expected revenue from each of at least three of the commodities must be 

equal to or greater than the qualifying revenue threshold ($9,534) for the 

applicant to be eligible for a coverage level above 75 percent (as shown in SP).

Calculation: [{(1.0 ÷ 6 commodities) × 0.333 = .056} × $170,250 = $9,534] 

Round to 3 decimals after each calculation.

The expected revenue for each commodity is:

$93,750 for corn;

$9,500 ($9,000 + $500) for mums and geraniums;

$50,000 for pigs;

$9,000 for carrots; 

$6,000 for cucumbers; and

$2,000 for squash.

Only two commodities (corn and pigs) individually have expected revenue equal 

to or greater than the qualifying revenue threshold ($9,534). However, the 

applicant can combine the expected revenue of any of the other commodities 

(nursery (mums and geraniums)), carrots, cucumbers, and squash) to meet the 

qualifying revenue threshold. The combined revenue for the nursery ($9,500), 

carrots ($9,000), cucumbers ($6,000), and squash ($2,000) is $26,500. $26,500 ÷ 

$9,534 = 2.8 (no rounding) resulting in an additional 2 counted commodities 

bringing the commodity count to 4. The applicant is eligible for a coverage level 

above 75 percent (as shown in SP).
October 2022 FCIC-18160-1 20

41 Basic Information and Commodity Count (Continued)

Example 2: At SCD, the applicant reported three (3) commodities on the IFOR (corn, pigs, 

and combined direct marketing commodities) that will be produced with a Total 

Expected Revenue of $160,750. The combined direct marketing commodity 

code revenue ($17,000) is excluded from the qualifying revenue threshold 

calculation.

Calculation: [{(1.0 ÷ 2 commodities) × 0.333 = .167} × $143,750 = $24,006] 

Round to 3 decimals after each calculation.

The expected revenue for each commodity is:

$93,750 for corn;

$50,000 for pigs; and

$17,000 for combined direct marketing commodities;

Only two (2) commodities (corn and pigs) individually have expected revenue 

equal to or greater than the qualifying revenue threshold ($24,006). However, 

the insured has reported the combined direct marketing commodity code that 

counts as two (commodities). Therefore, the insured’s commodity count is equal

to four (4).

(5) A farm operation producing multiple commodities with DIFFERENT commodity codes is 

ineligible for WFRP if:

(a) The farm operation qualifies for only ONE commodity using the commodity count 

calculation in the WFRP policy; and

(b) The commodity listed on the FOR with the highest expected revenue has another FCIC 

Revenue plan of insurance available for the county listed on the WFRP application.

Note: 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 FOR using multiple lines with the 

same commodity code is ineligible for WFRP if:

(a) the farm operation qualifies for only one commodity using the commodity count 

calculation in the WFRP policy; and

(b) the commodity listed on the FOR with highest expected revenue (within the common 

commodity code) has another FCIC Revenue plan of insurance available for the county 

listed on the WFRP application.
October 2022 FCIC-18160-1 21

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 available, such as, but not 

limited to, specific dry bean or pea types and corn silage, revenue 

coverage will not be considered available for WFRP purposes and the 

farm operation may be eligible for WFRP insurance.

Example 1: A farm operation in Carter County, Montana produces wheat (00100) 

with expected revenue of $100,000, alfalfa (003301) with expected 

revenue of $10,000, and hay (003308) with expected revenue of $2,000. 

The farm operation qualifies for only one commodity based on the 

commodity count calculation. A Revenue Protection policy is available in 

Carter County, Montana for wheat (the commodity listed on the FOR 

with the highest expected revenue); therefore, this farm operation is 

ineligible for a WFRP policy.

Example 2: A farm operation in St. Clair County, Michigan produces two types of dry 

beans (004700); black beans with expected revenue of $100,000, and 

small red beans with expected revenue of $10,000; and hay (003308) 

with expected revenue of $2,000. The farm operation qualifies for only 

one commodity based on the commodity count calculation. A Revenue 

Protection policy is available in this county for black beans (the 

commodity listed on the FOR with the highest expected revenue), so this 

farm operation is ineligible for a WFRP policy.

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

dry beans (004700); great northern beans with expected revenue of 

$100,000, small red beans with expected revenue of $10,000, and black 

beans with expected revenue of $2,000. The farm operation qualifies for 

only one commodity based on the commodity count calculation. Great 

northern beans are the largest revenue producing commodity on this 

farm and while a Revenue Protection policy is available in this county for 

most dry bean types, revenue protection is not available in this county 

for great northern beans (Refer to note above in 41(B)(4)(b)), so the farm 

is eligible for a WFRP policy.

Note: There are several type codes for dry beans and dry peas under the Dry 

Bean Revenue and Dry Pea Revenue insurance plans; however, the 

commodity code for most dry beans under WFRP is 004700 and for some 

dry peas under WFRP is 006700. Dry beans and dry peas are examples of 

commodities that the type with the highest expected revenue within the 

multiple types listed on the FOR will be used for determination of WFRP 

eligibility.
October 2022 FCIC-18160-1 22

41 Basic Information and Commodity Count (Continued)

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) If the AIP verifies a commodity reported on an insured’s IFOR was not established or was 

destroyed due to an insured COL and replaced with another commodity, the insured’s 

commodity count will not be less than the commodity count calculated using the IFOR. A 

timely NOL must be submitted to allow the AIP the opportunity to verify there was an insured 

COL.

Example: An insured submits an IFOR with three intended commodities and expected 

values, corn ($25,000), soybeans ($50,000), and wheat ($25,000). Due to an 

insured COL, the insured was unable to plant corn, but was able to plant 

additional soybeans as a replacement commodity at a later date. Due to the 

required adjustment on the RFOR (see Paragraph 49), there are now two 

commodities and values submitted, soybeans ($75,000) and wheat ($25,000). 

The commodity count will remain at three due to an insured COL reducing it at 

the time the RFOR is submitted.

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

(9) Refer to the WFRP policy for administrative fee amount and payment date. The procedures in 

the CIH regarding administrative fee waivers and third-party prohibitions apply.

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 AD; 

(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.

(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. This is 

not applicable to commodities insured under Micro Farm Provisions because coverage 

provided by another policy authorized under the Act is not allowed.
October 2022 FCIC-18160-1 23

42 Coverage Levels (Continued)

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

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

(2) For Micro Farm, replant payments are not allowed.

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 3 and 14 for required elements with 

descriptions and examples of the Allowable Revenue Worksheet.

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

(a) the sales of animals, and other commodities you purchased for resale, less the cost or 

other basis of such animals or other commodities (line 1c of Schedule F) (include 

revenue from CCC loans forfeited);

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

Schedule F.);

(c) the taxable amount of total cooperative distributions (line 3b of Schedule F) (Include 

only those directly related to the sale of insured commodities and supported by 

verifiable records, (e.g., distributions for corn, not fertilizer); and

For claim purposes, only include cooperative distributions related to the sale of 

commodities produced in the insurance period.

(d) other revenue reported on line 8 of Schedule F. Exclude Federal and State gasoline or 

fuel tax credits or refunds if included on this line. Include all revenue directly related to 

the production of commodities and supported by verifiable records that the IRS requires 

you to report, including, but not limited to:
October 2022 FCIC-18160-1 24

44 Allowable Revenue and Allowable Revenue Worksheet (Continued)

(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).

(e) For Micro Farm, post-production operations and value added may be included. Refer to 

Paragraph 161. 

(3) Completion of the Allowable Revenue Worksheet is required to show which commodities are 

allowed from the farm tax forms and what adjustments are necessary.

(4) The AIP must not accept any revenue amount or an adjustment to the revenue amount if the 

amount reported for WFRP purposes cannot be verified using verifiable records or direct 

marketing sales records.

(5) The following are commonly used IRS tax forms used to report farm revenue and expenses. If 

forms other than the Schedule F are used, a Substitute Schedule F must be completed. The 

Substitute Schedule F must result in the same revenue as the alternative tax form used and 

records must be available to support the Substitute Schedule F to the AIP’s satisfaction.

(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 RTC for claim purposes. Refer to 

Paragraph 101 for information regarding adjustments to revenue for claims purposes.
October 2022 FCIC-18160-1 25

44 Allowable Revenue and Allowable Revenue Worksheet (Continued)

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

(a) revenue from any post-production operations;

Exception: For Micro Farm, if revenue generated from post-production operations is 

used when determining the whole-farm historical average and the 

expected revenue, it must be included as RTC.

(b) revenue from value added to commodities, such as gift baskets and wine;

Exception: For Micro Farm, if revenue generated from value-added to commodities 

is used when determining the whole-farm historical average and the 

expected revenue, it must be included as RTC.

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

(d) revenue earned from custom hire or rental activities;

(e) cooperative distributions that are not directly related to the sale of an insured 

commodity (at claim time, use only those that are applicable to the policy year);

(f) revenue earned as an animal contract grower;

(g) revenue from wages, salaries, tips, cash rent, rental of equipment or livestock, or 

supplies;

(h) revenue from government agricultural programs, disaster payments, and replant 

payments;

(i) revenue from uninsurable commodities, such as, animals for show or sport, timber, 

forest, forest products, controlled substances, and those commodities not grown in the 

United States; 

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

(k) revenue from sources other than insurable commodities, such as bottled water or 

souvenir sales.

(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 RTC for claims:

(a) net gain from commodity hedging or speculation;

(b) value assigned for uninsured cause of loss or abandoned acreage;

(c) accrual adjustments for beginning and ending accounts receivables and inventories;
October 2022 FCIC-18160-1 26

44 Allowable Revenue and Allowable Revenue Worksheet (Continued)

(d) crop insurance indemnities authorized under the Act and prevented planting payments 

from other FCIC policies; and

Example: Insured A has apples insured under WFRP and under a FCIC yield based 

apple policy. Any indemnity under the yield-based apple policy is not 

included in the allowable revenue however, it is included in RTC for 

WFRP.

(e) any payments received from NAP or other insurance indemnities from policies not 

authorized under the Act:

(i) must be excluded from allowable revenue in each year of the whole-farm history 

period, however;

(ii) the portion of payments and indemnities that exceeds the insured’s deductible, 

as determined in Paragraph 123, will be included as RTC for claims in the current 

policy year.

45 (Reserved)

46 Whole-Farm History Report

(1) Insureds must provide a completed WFHR on or before the SCD for the policy year.

If the applicant has a short-tax year in their whole-farm history or their lag year is a short tax 

year, they must resubmit their whole-farm history based on the calendar or fiscal year used for 

the policy year within the history and the AIP may, at their discretion, and based on the 

person’s resubmitted records, allow the applicant to obtain WFRP insurance.

(2) The WFHR includes the:

(a) allowable revenue calculated on the Allowable Revenue Worksheet in Paragraphs 44 for 

each year of the whole-farm history period; ***

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

the 2023 policy year is 2017, 2018, 2019, 2020, and 2021. Tax year 2022 

is the lag year and is not included in the 2023 whole-farm history period, 

except for a qualifying person with less than five years in their wholefarm history period.

Example 2: The whole-farm history period for a late fiscal year filer for the 2023 

policy year are tax years 2016, 2017, 2018, 2019, and 2020. Tax year 

2021 is a lag year and is not included in the 2023 whole-farm history 

period, except for a qualifying person with less than five years in their 

whole-farm history period.
October 2022 FCIC-18160-1 27

46 Whole-Farm History Report (Continued)

Example 3: The whole-farm history period for a calendar or early fiscal year filer 

under Micro Farm for the 2023 policy year with three years of tax records 

is 2020, 2021, and 2022; with four years of tax records is 2019, 2020, 

2021, and 2022; and with five years of tax records is 2018, 2019, 2020, 

2021, and 2022. 

(b) all calculated average revenues, including indexed and with or without elected 

insurance options, and expanded operation values (if applicable). Refer to Paragraph

71; and

(c) highest of the average, indexed average (if applicable), revenue cup (if elected) or 

expanded operation (if applicable) allowable revenue that is entered as the whole-farm 

historic average revenues. ***

Refer to Exhibits 3 and 4 for required elements, descriptions of required elements, and an 

example of a WFHR.

A copy of the applicant’s/insured’s tax form(s) for each year in the whole-farm history period 

must be provided with the WFHR. If Substitute Schedule F forms are used, they must also be 

provided at that time. An Allowable Revenue Worksheet will need to be completed for each 

tax year. Refer to Paragraph 51 for more information about required farm tax forms and 

verifiable information. ***

47 Use of a Different Person’s Tax Returns

(1) An applicant/insured may use the tax records of another person to meet the requirement of 

providing tax records for the years in the whole-farm history period if the requirements in the 

policy are met.

The purchase, lease, or inheritance of a farm operation, by itself, is not sufficient for an 

applicant/insured to use the tax returns of the person from whom they purchased, leased, or 

inherited an operation. An AIP may approve an applicant/insured’s use of a different person’s 

tax returns for the applicable years in the whole-farm history period if:

(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
October 2022 FCIC-18160-1 28

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

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

income tax returns.

(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 WFHR that represents the combination of the 

applicant’s/insured’s allowable revenue, and the allowable revenue of the other 

person for the applicable tax years; and ***

(iv) verifiable documentation that:

(A) at least 90 percent of the other person’s farm operation was obtained by 

the applicant/insured and added to their farm operation;

(B) the other person whose tax returns the applicant/insured wishes to use

had an insurable interest in all the commodities produced on the farm 

operation the applicant/insured obtained; and

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

(i) verifiable documentation that supports the income on the tax return(s) of the 

other person; and ***

(ii) verifiable documentation of all post-production operations related to the other 

person’s farm operation for the tax years the applicant/insured uses.

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

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

(b) obtaining another farm operation or the change in the person type was not done to 

avoid any tax law or any program eligibility criteria, including evading the ineligibility for 

program benefits under 7 C.F.R. part 400, subpart U.

(3) The AIP must notify the applicant/insured whether the use of the different person’s tax records 

is approved or denied within 15 business days after receiving all required information.

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

(a) approved, the applicant’s/insured’s allowable revenue and the other person’s allowable 

revenue will be combined for the applicable year; or ***
October 2022 FCIC-18160-1 29

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

(b) denied, the applicant’s/insured’s WFHR and all other applicable reports will be modified 

to reflect only the approved allowable revenue of the applicant/insured for each 

applicable year. ***

48 Intended Farm Operation Report

(1) The IFOR is the form on which the insured provides all required information regarding the 

intended commodities they plan to produce during the insurance period and expect to earn or 

will obtain revenue from during the insurance period. Refer to Exhibit 8 that includes an 

example of an IFOR, RFOR, and FFOR.

Insureds must provide an IFOR to the AIP on or before the SCD for the policy year. Insureds 

may submit an IFOR following the CCD of the current policy year. For example, the CCD for 

2023 is August 31, 2022. An insured may submit an IFOR on or after September 1, 2022, for the 

2023 policy year. If a carryover insured does not file an IFOR by the SCD, the policy will be 

cancelled. Refer to Subparagraph 23(13). 

(2) The IFOR will include a list of all intended commodities the insured plans to produce during the 

year. The following apply to the IFOR:

(a) Commodity and rate codes can be found in the AD. If the AIPs find a commodity is 

missing from a county list, they should use the most applicable “Other” commodity code 

such as, Other Fruits. If the commodity is widely grown, notify the RMA Regional Office 

for their region.

(b) The expected revenue for each intended commodity reported, with expected yields 

reflecting the amount of production to be sold and expected values reflecting the 

expected sale price from markets where the crop is normally sold. Refer to Exhibit 18. 

The source of the expected value and expected yield must be documented on the 

Expected Value and Yield Source Document Certification Worksheet. Refer to Exhibit 9. 

For intended commodities that are not insured by another policy authorized under the 

Act, the insured’s acreage, production, and revenue history (direct market commodities) 

must be reported on the Yield and Revenue Report. Refer to Exhibit 10. 

(c) Commodities that are direct marketed may be listed on the FOR under the combined 

direct marketing commodity found in the AD. Refer to Paragraph 150. 

(d) If a marketing contract becomes effective after the IFOR is submitted, the expected 

value shall be revised to reflect the price contained in the marketing contract for the 

portion of production under contract.

(e) For commodities harvested prior to 10 days after the AIP accepts the application in the 

initial year, the expected yield must be the harvested yield.

(f) Commodities produced on Native Sod must be listed on a separate line on the IFOR.
October 2022 FCIC-18160-1 30

48 Intended Farm Operation Report (Continued)

(g) Commodities with multiple rate codes must be listed on separate lines on the IFOR. 

Also, commodities with multiple types, practices, shares, or that have different expected 

values, regardless of whether there are separate rate codes, must be listed on multiple 

lines on the IFOR. Expected values that are less than zero cannot be combined with 

other lines of a commodity to achieve a weighted average for the commodity.

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

forms the basis of the insurance.

(i) Premium rating for WFRP is based on the commodities grown and the amount of 

expected revenue for each commodity reported for the applicable rate code listed in the 

AD. Premium rates are calculated for each individual farm and are based on the RFOR, 

so it is important to report accurately. When commodities or amounts of commodities 

change on a revised report (compared to the Intended Report), the approved revenue, 

premium rate, and premium will change.

(j) The Whole-Farm Historic Average Revenue from the WFHR are carried forward to the 

IFOR. Total Expected Revenue from all commodities on the IFOR is summed. The 

approved revenue is determined as the lesser of the Whole-Farm Historic Average 

Revenue or the Total Expected Revenue from the IFOR. ***

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

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

(l) The AIP should note any condition or change that will affect the approved revenue 

compared to the whole-farm historic average revenue, including but not limited to any 

IRS reporting changes, such as a change in accounting methods, tax year, or person 

type.

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

void and no coverage will be provided. Refer to Subparagraph 21(3)(d) and Paragraphs 

126, and 149 regarding industrial hemp.

(n) The Total Expected Revenue (item 13E) on the IFOR should reflect only the amount of 

revenue the insured can expect to earn or obtain from commodities produced to sell 

during the insurance period and the insured’s share of the revenue for the commodity 

on that line.

Example: The insured’s farm operation includes a .500 share of 7 acres of onions. 

The Total Expected Revenue for the line will be multiplied by the 

insured’s share: 4.0 tons × $150.00 = $600 × 7.0 acres = $4,200 × .500 

share = $2,100 Total Expected Revenue
October 2022 FCIC-18160-1 31

48 Intended Farm Operation Report (Continued)

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

(3) The total number of acres of the same commodity planted and harvested more than once in 

the insurance period must be reported on the IFOR.

Example: Insured A intends to plant and harvest lettuce on the same five acres two 

separate times during the insurance period. This is a normal practice for the 

insured and is considered a GFP for the area. Insured A would report they intend 

to plant 10 acres of lettuce on the FOR.

(4) The expected value provided on the IFOR for a commodity that was purchased for resale must 

not include the cost, or other basis, of the commodity. Refer to Exhibit 18 for guidelines on 

determining expected value.

Important: 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 IFOR. If an intended 

commodity has a different rate code, expected values, or the insured’s share is less than 100 

percent, the AIP must list it on separate lines on the IFOR.

Example: Insured A intends to plant 10 acres of onions with a yield of 4 tons per acre for 

one price and 2 tons per acre for a substantially different price. Production from 

7 acres will be sold to a processor with an expected value of $150/ton, and the 

remaining production from 3 acres will be sold in the fresh market with an 

expected value of $190/ton. The onions must be reported on separate lines on 

the IFOR due to the substantially different expected values of the production.

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

must be reported on the FOR. Such conditions and changes include, but are not limited to:

(a) change in the size of the farm operation;
October 2022 FCIC-18160-1 32

48 Intended Farm Operation Report (Continued)

(b) removal or planting of perennial commodities/trees;

(c) land renovations, such as bog renovation;

(d) changes in farming practices, including organic transitional or organic;

(e) changes in farm management or accounting methods;

(f) change in tax year;

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

(h) change in the commodities produced or purchased for resale;

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

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

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

Any of the above changes could result in changes to the expected revenue for the insurance 

period and must be reflected on the FOR.

(7) If the IFOR only includes intended revenue from perennial commodities already established on 

the farm operation and no changes are anticipated, the insured may submit their RFOR at the 

time their IFOR is submitted.

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

insurance period.

(8) Under the Micro Farm Provisions, intended commodities can only be listed on the FOR under 

the micro farm commodity code found in the AD.

49 Revised Farm Operation Report

(1) A RFOR must be submitted during the insurance period, similar to an acreage report, to reflect 

the activities that actually occurred on the farm. The RFOR must be submitted:

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

(b) within 30 days of the insured making changes to the commodities grown on the farm or 

purchased for resale after the RFOR is completed. The RFOR may only be revised later, 

with AIP approval and must exclude any changes to revenue resulting from a covered 

cause of loss.

(2) If the insured’s IFOR includes only expected revenue from perennial commodities already 

established on their farm operation and no changes are anticipated, the insured may submit 

their RFOR at the time the IFOR is submitted.
October 2022 FCIC-18160-1 33

49 Revised Farm Operation Report (Continued)

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

insurance period in accordance with the section 15 of the policy and item 1(b) 

above.

(3) If the insured fails to timely submit their RFOR, or the AIP is unable to verify the information 

that was submitted, the AIP will deny any indemnity, or replant payment and the insured will 

still be required to pay the premium due. The AIP must use the information from the IFOR as 

the RFOR for premium calculation purposes.

(4) The purpose of a RFOR is to report information about changes to the farm operation after the 

IFOR was submitted. The RFOR must include:

(a) intended commodities that were actually planted or purchased for resale;

(b) intended commodities that were planned to be produced or purchased for resale but 

will not be produced or purchased for resale, such as in the case of prevented planting, 

and the reason they were not produced or purchased for resale;

(c) commodities produced or purchased for resale that were not intended to be produced 

or purchased for resale when the IFOR was submitted;

(d) damaged intended commodities, and the reason for the damage;

(e) commodities produced to replace commodities damaged or prevented from being 

produced; and

(f) circumstances that will affect the expected revenue, such as changes in production or 

irrigation practices. Expected values cannot be revised after the IFOR is submitted.

(5) If a commodity is added to the RFOR that was not listed on the IFOR, the expected revenue 

should be based on expected yields reflecting the amount of production to be sold and 

expected values reflecting the expected sale price from markets where the crop will be sold. 

Expected values and yields will be determined as of the date the RFOR is submitted. Refer to 

Exhibit 18. The source of the expected value and yield must be documented on the Expected 

Value and Yield Source Document Certification Worksheet. Refer to Exhibit 9.

(6) If a commodity is added to the RFOR that was not listed on the IFOR or the RFOR by the RFOR 

date, and a late revision is allowed by the AIP, the expected revenue should be based on 

expected yields reflecting the amount of salable production and expected values reflecting the 

expected sale price by markets where the crop will be sold. Expected values and expected 

yields will be calculated as of the date of planting of the added commodity.

(7) The expected quantity and revenue of intended commodities the insured plans to produce 

during the insurance period, but that have not yet been produced by the date the RFOR is 

initially submitted (on or before the required reporting date as stated in Subparagraph 49(1) 

above), are identified on the IFOR. If those intended commodities are actually produced, these 

numbers will be carried forward to the RFOR. 
October 2022 FCIC-18160-1 34

49 Revised Farm Operation Report (Continued)

(8) If a marketing contract becomes effective after the RFOR is due, the expected value may be 

revised to reflect the price contained in the marketing contract for the portion of production 

under contract. Refer to Subparagraph 49(1)(b) for limitations on Revised Farm Operation 

revisions.

(9) The following provides instructions for determining the quantity and expected revenue to enter 

on the RFOR. Refer to Exhibit 8 for example of FOR submitted at required reporting date and 

revised during the insurance period. ***

(a) IF an intended commodity on SCD is planted, produced, or purchased for resale, at the 

time the RFOR is submitted AND no changes are made, and the intended report is still 

correct as to what is being produced and what was purchased for resale THEN the 

numbers pertaining to the quantity planted, produced, or purchased for resale and 

expected revenue from the IFOR are carried forward to the RFOR. Refer to Example 1 

below.

(b) IF an intended commodity on SCD is not planted, produced, or purchased for resale at 

the time the RFOR is submitted AND the insured still intends to plant, produce, or 

purchase for resale, the same amount of the commodity in the insurance period THEN 

the numbers pertaining to the quantity planted, produced, or purchased for resale and 

expected revenue from the IFOR are carried forward to the RFOR. Refer to Example 1 

below.

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

insurance period and submitted such on the IFOR. At Revised time the producer 

has planted the 125 acres of corn and still intends to plant the 100 acres of 

soybeans. The same quantity and expected revenue from the IFOR are carried 

forward to the RFOR for both the corn and soybeans.

(c) IF an intended commodity on SCD is not planted, produced, or purchased for resale at 

the time the RFOR is submitted AND the insured does not intend to plant, produce, or 

purchase for resale all of the commodity due to a farm management decision or an 

uninsured cause of loss THEN Do not carry forward any information regarding the 

commodity not planted, produced, or purchased for resale. Refer to Example 2 below.

(d) IF an intended commodity on SCD is not planted, produced, or purchased for resale at 

the time the RFOR is submitted AND the insured intends to plant, produce, or purchase 

for resale only a portion of the commodity due to a farm management decision or an 

uninsured cause of loss THEN:
October 2022 FCIC-18160-1 35

49 Revised Farm Operation Report (Continued)

(i) the actual quantity of the commodity to be planted, produced, or purchased for 

resale is entered on the RFOR; and

(ii) the expected revenue is calculated using the quantity from (i) and entered in the 

Total Expected Revenue column on the RFOR. Refer to Example 2 below.

(e) IF an intended commodity on SCD is planted, produced, or purchased for resale, at the 

time the RFOR is submitted AND changes were made to the quantity planted, produced, 

or purchased for resale due to farm management decisions THEN:

(i) the actual quantity of the commodity to be planted, produced, or purchased for 

resale is entered on the RFOR; and

(ii) the expected revenue is calculated using the quantity from (i) and entered in the 

Total Expected Revenue column on the RFOR. Refer to Example 2 below.

Example 2: A producer intends to produce 125 acres of corn, 100 acres of soybeans and 50 

acres of wheat during this insurance period and submits such on the IFOR. At 

Revised time the producer has not planted any corn and planted only 40 acres of 

wheat due to a farm management decision. 50 acres of soybeans were not 

planted due to a verified uninsured cause of loss and 50 acres of soybeans were 

planted. The intended commodity information for the corn remains on the IFOR 

and not carried forward to the RFOR. The actual quantity planted and calculated 

expected revenue for the soybeans and wheat is entered on the RFOR.

(f) IF an intended commodity on SCD is not planted at the time the RFOR is submitted AND 

(1) the AIP verifies the failure to plant was due to an insured cause of loss; and (2) some 

or all of the acres will not be planted to the intended commodity and will or will not be 

replaced by a different commodity in the insurance period THEN:

(i) the quantity of the planted acreage to the intended commodity, is entered in the 

“Actual Quantity” column of the RFOR for the commodity; ***

(ii) the quantity of the intended commodity not planted due to insured causes and 

not replaced, is entered in the “Actual Quantity” column of the RFOR for the 

commodity; 
October 2022 FCIC-18160-1 36

49 Revised Farm Operation Report (Continued)

Note: The total of (i) and (ii) must not exceed the intended acreage of the 

commodity.

The following applies if some or all acreage of the intended commodity not 

planted due to insured causes will be replaced with a replacement commodity:

(iii) the actual quantity of the acreage of the intended commodity not planted due to 

insured causes and replaced is entered in the “Actual Quantity” column of the 

RFOR for the commodity;

(iv) the quantity and expected revenue of the replacement commodity, with 

expected value calculated as of the date the Revised Farm Operation is 

submitted, is entered in the “Actual Quantity” and “Expected Revenue” columns, 

respectively, of the RFOR for the replacement commodity;

(v) the expected revenue of the acreage in item (iii) is reduced by the expected 

revenue of the replacement commodity, and the reduced amount, if not less 

than zero, is entered in the “Expected Revenue” column of the RFOR for the 

acres of the intended commodity not planted (or with reduced production and 

replacement). Do not carry forward acres of the intended commodity in item 

(iii) if expected revenue is reduced to zero or less;

(vi) the expected revenue of the acreage in item (ii) is multiplied by 0.60 and entered 

in the “Expected Revenue” column of the RFOR for the acres for the acres; and

(vii) the expected revenue of the replacement commodity is entered in full along 

with the acres/head, etc., of the replacement commodity. The expected value of 

the replacement commodity will be as of the date the commodity was planted or 

purchased for further growth or purchased for resale. Refer to Example 3 below.

Example 3: A producer intends to produce 125 acres of corn during the insurance period. At 

Revised time the producer has not planted 50 acres to corn due to an insured 

cause of loss. Only 25 of the unplanted acres will be planted to soybeans, with a 

yield of 100 bushels per acre and an expected value of $6.00 per bushel at the 

time of planting. The quantity of corn planted (75 ac.) is carried forward from 

the IFOR to the RFOR. The acres not planted to corn and replaced (25 ac.) are 

added on a new line and Total Expected Revenue will be entered as $3,750 

which is the total expected revenue of corn adjusted by the total expected 

revenue of soybeans. The acres not planted to corn due to insured causes and 

not replaced (25 ac.) are added on a new line and the Total Expected Revenue 

will be entered as $11,250 which is the total expected revenue of corn multiplied 

by 0.60. The replacement commodity (soybeans) is added to the FOR using the 

expected value at the time of planting.
October 2022 FCIC-18160-1 37

49 Revised Farm Operation Report (Continued)

(g) IF an intended commodity on SCD is planted but was damaged prior to harvest and prior 

to the time the RFOR is submitted AND (1) the AIP verifies that the failure to produce or 

the damage was due to an insured cause of loss; and (2) the intended commodity will 

not be replaced by a different commodity in the insurance period THEN the numbers 

pertaining to the quantity produced and expected revenue from the IFOR are carried 

forward to the RFOR. Refer to Example 4 below. 

Example 4: A producer intends to produce 125 acres of corn and submits such on the IFOR. 

The producer planted the corn and it was damaged by an insured cause of loss 

prior to harvest and prior to the time the RFOR is due. The producer will not 

replant nor replace the corn. The same quantity and expected revenue from the 

IFOR will be carried forward to the RFOR.

(h) IF an intended commodity on SCD is planted but was damaged prior to harvest and prior 

to the time the RFOR is submitted AND (1) the AIP verifies failure to produce or the 

damage to the intended commodity was due to an insured or uninsured cause of loss; 

and (2) the intended commodity is or will be replaced a different commodity in the 

insurance period THEN:

(i) the quantity of the planted acreage to the intended commodity damaged and 

not replaced is entered in the “Actual Quantity” column of the RFOR for the 

commodity;

The following applies if some or all acreage of the intended commodity damaged 

will be replaced with a replacement commodity:

(ii) the quantity of the acreage of the intended commodity damaged and replaced is 

entered in the “Actual Quantity” column of the RFOR for the commodity; 
October 2022 FCIC-18160-1 38

49 Revised Farm Operation Report (Continued)

(iii) the quantity and expected revenue of the replacement commodity, with 

expected value calculated as of the date the RFOR is submitted, is entered in the 

“Actual Quantity” and “Expected Revenue” columns, respectively, of the RFOR 

for the replacement commodity;

(iv) the expected revenue of the acreage in item (ii) is reduced by the expected 

revenue of the replacement commodity, and the reduced amount, if not less 

than zero, is entered in the “Expected Revenue” column of the RFOR for the 

intended commodity not produced (or with reduced production and 

replacement). Do not carry forward acres of intended commodity in item (ii) if 

expected revenue is reduced to zero or less; and

(v) 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 5 below.

Note: Any expected revenue lost due to an uninsured cause of loss will 

be considered RTC for claims purposes.

(i) IF an intended commodity on SCD is planted but was damaged prior to harvest and prior 

to the time the RFOR is submitted AND (1) the AIP verifies the damage to the intended 

commodity was due to an uninsured cause of loss; and (2) the intended commodity was 

or was not replanted, or will not be replaced by a different commodity in the insurance 

period THEN the numbers pertaining to the quantity and expected revenue of the 

damaged intended commodity from the IFOR are carried forward to the RFOR. Refer to 

Example 5 below.

Note: Any expected revenue lost due to an uninsured cause of loss will be 

considered RTC for claims purposes.

Example 5: A producer intends to produce 125 acres of corn and 100 acres of soybeans 

during this insurance period and submits such on the IFOR. At the time the 

Revised Farm Operation is due the producer has planted the 125 acres of corn, 

but 50 acres was damaged due to an uninsured caused of loss. The 100 acres of 

the soybeans were planted, and all 100 acres was damaged prior to harvest from 

the same uninsured cause of loss that damaged the corn. The 50 acres of 

damaged corn will be replaced with buckwheat, with an expected yield of 75 

bushels per acre and an expected value of $4.00/bushel at the time of planting. 

The soybeans will not be replaced. The 75 acres of planted corn and the 100 

acres of damaged acres and expected revenue of soybeans are carried forward 

from the IFOR to the RFOR. The 50 damaged acres of corn that will be replaced 

are added on a new line and the Total Expected Revenue will be entered as 

$22,500 which is the total expected revenue of corn acres damaged and

replaced adjusted by the total expected revenue of buckwheat. The 

replacement commodity (buckwheat) is added to the FOR using the expected 

value at the time of planting.
October 2022 FCIC-18160-1 39

49 Revised Farm Operation Report (Continued)

(j) IF an intended commodity on SCD is changed after the date the RFOR is due, except 

those resulting from a covered cause of loss AND (1) the insured reports this within 30 

days, as required after the change to the AIP; and (2) the AIP consents that a revision to 

the RFOR should be made THEN the AIP may revise the RFOR with the revised 

commodities or commodity amounts. Expected values will be as of the date the 

commodity was planted or purchased for further growth or purchased for resale. This 

change assures that the farm operation will not be over-insured and that the premium 

rates charged will be appropriate for what was produced.

(k) IF an intended commodity on SCD is changed after the date the RFOR is due, except 

those resulting from a covered cause of loss AND (1) The insured reports this within 30 

days, as required after the change to the AIP; and (2) the AIP does not consent that a 

revision to the RFOR should be made THEN no revisions are made to the RFOR and all 

revenue will count as RTC, even if the commodity is not listed on the RFOR.

(10) The Approved Revenue cannot exceed $17 million divided by the coverage level elected by the 

insured. If this occurs the Approved Revenue will be capped. Any applicable Animal/Animal 

Products, Nursery/Greenhouse, or Commodities Purchased for Resale limitations must be 

calculated prior to applying the Approved Revenue limit. Regardless of any limitation, all 

allowable revenue earned during the insurance period will be considered RTC.

Example: At the time the RFOR is due, the Approved Revenue is $22,000,000. The insured 

has elected the 85 percent coverage level. $17,000,000 divided by .85 equals 

$20,000,000, so the Approved Revenue for this farm is capped at $20,000,000. 

Insured Revenue will equal $17,000,000 and all revenue earned during the 

insurance period will be considered RTC.

(11) For Micro Farm, the approved revenue cannot exceed $350,000 for a first year insured or 

$400,000 for a carryover insured. If this occurs, the Approved Revenue will be capped at 

$350,000 for a first year insured or $400,000 for a carryover insured. Regardless of this 

limitation, all allowable revenue earned during the insurance period will be considered RTC.
October 2022 FCIC-18160-1 40

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 FOR; and

(b) at the earlier of the time a claim is submitted for indemnity or the SCD of the 

subsequent policy year. For fiscal year filers whose fiscal year ends after the SCD of the 

subsequent policy year, the FFOR is due the earlier of the date a claim is submitted or 60 

days after the end of the current insurance period. If the FFOR is not provided, the 

insured will be limited to a 65 percent coverage level for the next insurance period.

Note: For Micro Farms the revenue actually received or the total expected value for 

all commodities on the farm operation as of the last day of the insurance 

period if the production was not sold should be reported in the final column 

on the report. There is no need to report final total production.

(2) If the insured does not submit a FFOR for the current policy year, cancels their WFRP policy for 

the subsequent year, and no claim for indemnity is submitted, the AIP may use the information 

from the RFOR to complete the FFOR.

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, including all farm related filed 

statements and forms must be provided to the AIP for each tax year in the whole-farm 

history period.

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

the allowable revenue on the WFHR if the AIP has reason to believe the farm tax form(s) 

do not provide adequate documentation of revenue or expenses for WFRP purposes. 

The AIP must not accept any WFHR if the allowable revenue for any year cannot be 

verified through the requested verifiable records and/or direct marketing sales records. 

***

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

in the same manner as provided on a Schedule F tax form by completing a Substitute 

Schedule F. The Substitute Schedule F must contain all information that would appear 

on a Federal Schedule F tax form, including farm expenses, and must be sufficient to 

complete the Allowable Revenue Worksheet. The person must use the same accounting 

period when completing the Substitute Schedule F as was used on the farm tax form 

they filed with the IRS for the applicable year. ***

In addition to the Substitute Schedule F, such persons must provide:

(a) the farm tax forms filed with the IRS; and
October 2022 FCIC-18160-1 41

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

A. IRS Tax Forms (Continued)

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

tax form was filed.

The AIP must not accept any WFHR that does not include or is not supported by a 

Substitute Schedule F and associated verifiable records, direct marketing sales records, 

or for micro farm commodity code, consolidated sales records if no Schedule F tax form 

was filed.

Refer to Exhibit 13 for an example of a Substitute Schedule F.

B. Verifiable Records

Verifiable records include:

(1) Disinterested third-party verifiable documentation, which may include, but is not limited 

to, accounting records, farm management records, warehouse receipts, ledger sheets, 

sales receipts/records, settlement sheets, accounts paid, payroll receipts, copies of 

payments made to the Social Security Administration for tax payments, canceled checks 

showing the banking institution’s stamp of payment, and feeding records. Refer to the 

CIH for acceptable record requirements for vertically integrated entities. The Market 

Certification is not applicable to WFRP and Micro Farm.

Official NAP approved yield forms will be considered supporting records. Insureds must 

have records to substantiate the NAP approved yields and, if requested by the AIP, 

submit those records.

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

considered direct marketed, must include the:

(a) name of seller;

(b) name of the commodity;

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

(d) intended use of a commodity having significantly different expected values (e.g., 

alfalfa hay intended for dairy versus alfalfa hay intended for feedlot cattle); 

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

(f) date and year of transaction.
October 2022 FCIC-18160-1 42

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

B. Verifiable Records (Continued) 

(2) Direct marketing sales records and for Micro Farm, consolidated sales records, may 

include a year-end record that includes a total value for the commodities reported as 

combined direct marketing or under the Micro Farm Provisions, provided the total 

reported revenue is a complete record of revenue generated from combined direct 

marketing or Micro Farm commodities and, if requested by the AIP, contemporaneous 

records developed at the same time of the sale of a commodity (e.g., farmers market, 

roadside stand, etc.). Contemporaneous records may include daily receipts or other 

periodic (e.g., weekly, monthly, quarterly) records used to substantiate the revenue 

reported on the farm tax forms. If the insured sells commodities through direct 

marketing or insured under the Micro Farm Provisions, the records used to determine 

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

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

to the consumer or insured under the Micro Farm Provisions must include:

(i) insured’s name;

(ii) date;

(iii) name of the market, website, or buyer, as applicable;

(iv) total cash receipts; and

(v) listed names of the commodities sold (applicable only if not considered a 

combined direct marketing commodity or insured under the Micro Farm 

Provisions).

(b) For final production reporting, direct marketing sales records and consolidated 

sales records must include at a minimum:

(i) For combined direct marketing or Micro Farm commodities, a record that 

includes a total value for all combined direct marketing or Micro Farm

commodities.

(ii) For commodities not considered a combined direct marketing 

commodity:

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

and

(B) revenue per commodity received. 

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

(i) For combined direct marketing commodities, refer to Paragraph 150. 
October 2022 FCIC-18160-1 43

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

B. Verifiable Records (Continued) 

(ii) For direct marketed commodities not considered a combined direct 

marketing commodity:

(A) amount of each commodity taken to market;

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

(C) amount of each commodity sold;

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

(E) revenue received for each commodity.

Refer to Exhibit 16 for an example direct marketing sales records related 

to commodities not considered combined direct marketing commodities.

(iii) For Micro Farm, refer to Paragraph 161. 

(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.

52 WFRP Database

An insured’s WFRP database consists of their revenue history for the five consecutive tax years prior to 

the tax year immediately preceding the lag year. ***

Example 1: The five consecutive tax years of revenue history in a database for calendar and early 

fiscal year filers for the 2023 policy year are tax years 2017 through 2021. There is 

always a lag year before the policy year. ***

Example 2: The five consecutive tax years of revenue history in a database for late fiscal year filers 

for the 2023 policy year are tax years 2016 through 2020. There is always a lag year 

before the policy year. ***

The revenue history for a tax year must remain in the database until the tax year is outside the five 

year whole-farm history period, or it is determined the revenue for a tax year must be corrected. ***
October 2022 FCIC-18160-1 44

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 FOR. Premium rates from this county will be used to determine 

premium under WFRP. Regardless of the county listed on the application, the county with the 

highest expected revenue at the time RFOR is submitted will be used for rating purposes. 

Calculate the WFRP premium according to the WFRP policy. Refer to the Detail Worksheet of 

the Cost Estimator on the RMA website for an example.

(2) If insured purchases or has purchased individual Federal crop insurance policies issued under 

the authority of the Act, the insured revenue will be adjusted to reflect these purchases for 

premium calculations only.

(3) Do not include the liability for commodities such as pasture and rangeland insured under the 

Rainfall Index or Vegetation Index policies or the portion of liability attributed to commodities 

or portions of commodities produced for feed for use on the insured’s operation because these 

commodities are not insured under the WFRP Policy.

(4) The subsidy amount will be based on the commodity count determined by the commodity 

count calculation and the table specified in the AD. If a farmer or rancher qualifies as a BFR or 

VFR, the subsidy amount will be an additional ten percentage points and no administrative fee 

will be due.

(5) The premium subsidy for acres on native sod will be calculated in accordance with the reduced 

amount of subsidy allowed for native sod acres.

54-70 (Reserved)
October 2022 FCIC-18160-1 45

Section 2 Revenue Calculations

71 Revenue

A. Simple Average Allowable Revenue

To calculate the simple average allowable revenue:

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

period:

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

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

Example: Insured A has the following allowable revenue: $250,500 for 

2017; $300,256 for 2018; $99,350 for 2019; $98,750 for 2020; and 

$215,515 for 2021. Insured A’s average revenue is $192,874 

[($250,500 + $300,256 + $99,350 + $98,750 + $215,515) ÷ 5].

Example: Insured elected Micro Farm and has five years of farm tax forms in 

their micro farm whole-farm history period. The insured has the 

following allowable revenue: $86,100 for 2018, $86,250 for 2019, 

$85,000 for 2020; $86,500 for 2021; $91,300 for 2022. Insured 

average revenue is $87,030 [($86,100 + $86,250 + 85,000 + 

$86,500 + $91,300) ÷ 5].

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

period:

(a) determine the allowable revenue for the lag year using the insured’s Schedule F 

or Substitute Schedule F (if applicable) and the Allowable Revenue Worksheet;

Note: 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.

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

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

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

Example: Insured B did not earn any farm revenue during the 2021 policy 

year due to an illness. The insured did earn farm revenue during 

the 2022 policy year which is considered the lag year. The insured 

has the following allowable revenue: $160,360 for 2022 (lag 

year), $130,500 for 2017; $149,500 for 2018; $112,000 for 2019; 

$139,600 for 2020. Insured B’s average revenue is $138,392 

[($160,360 + $130,500 + $149,500 + $112,000 + $139,600) ÷ 5].
October 2022 FCIC-18160-1 46

71 Revenue (Continued)

A. Simple Average Allowable Revenue (Continued) 

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

period:

(a) determine the allowable revenue for the lag year using the insured’s Schedule F 

or Substitute Schedule F (if applicable) and the Allowable Revenue Worksheet;

Note: 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.

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

history period and the result of (a);

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

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

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

Example: Insured C is a BFR with three years of tax records for 2019-2021. 

The insured also has farm revenue for the 2022 policy year which 

is considered the lag year. The insured has the following 

allowable revenue: $149,500 for 2022 (lag year); $112,000 for 

2019; $139,600 for 2020; and $160,360 for 2021. The lowest 

allowable revenue from the whole-farm history period and the lag 

year is $112,000 (2019). Insured C’s average revenue is $134,692 

[($149,500 + $112,000 + $112,000 + $139,600 + $160,360) ÷ 5].

(4) For a qualifying person under Micro Farm with three years of tax records in the micro 

farm whole-farm history period:

(a) determine the lowest allowable revenue from the three years in the micro farm 

whole-farm history period;

(b) sum the allowable revenue for each year in the micro farm whole-farm history 

period;

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

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

(e) divide the result of (d) by five (rounded to the nearest whole dollar).
October 2022 FCIC-18160-1 47

71 Revenue (Continued)

A. Simple Average Allowable Revenue (Continued) 

Example: Insured D elected Micro Farm and has three years of tax records 

in their micro farm whole-farm history period. The insured has 

the following allowable revenue: $85,000 for 2019; $86,500 for 

2020; $91,300 for 2021. The lowest allowable revenue from the 

micro farm whole-farm history period $85,000 (2019). Insured D’s 

average revenue is $86,560 [($85,000 + $86,500 + $91,300 + 

$85,000 + $85,000) ÷ 5].

(5) For a qualifying person under Micro Farm with four years of tax records in the micro 

farm whole-farm history period:

(a) determine the lowest allowable revenue from the four years in the micro farm 

whole-farm history period;

(b) sum the allowable revenue for each year in the micro farm whole-farm history 

period;

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

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

Example: Insured E elected Micro Farm and has four years of tax records in 

their micro farm whole-farm history period. The insured has the 

following allowable revenue: $86,250 for 2018, $85,000 for 2019; 

$86,500 for 2020; $91,300 for 2021. The lowest allowable 

revenue from the micro farm whole-farm history period $85,000 

(2019). Insured E’s average revenue is $86,810 [($86,250 + 

85,000 + $86,500 + $91,300 + $85,000) ÷ 5].

B. Insurance Options

The insured may select one or more of the following options. However, if more than one 

option is selected the option with the highest revenue amount will be considered elected and 

used in determination of their whole-farm historic average.

(1) Revenue Substitution

Revenue substitution, when elected, allows the substitution of any year within an 

insured’s whole-farm history period that falls below 60 percent of their simple average 

allowable revenue or, if eligible and elected, their indexed simple average allowable 

revenue.

(a) To be eligible for the current policy year, the insured must elect revenue 

substitution by the applicable SCD.

(b) If elected:
October 2022 FCIC-18160-1 48

71 Revenue (Continued)

B. Insurance Options (Continued) 

(i) calculate the revenue substitution amount by multiplying the simple 

average revenue or indexed simple average revenue, if applicable, by 

0.60;

(ii) determine the allowable or, if eligible and elected, the indexed allowable 

revenue amounts of each year that fall below the result of (i);

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

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

(c) Revenue Substitution cannot be used in conjunction with Revenue Exclusion.

(2) Revenue Exclusion

(a) Revenue exclusion, when elected, allows the exclusion of the lowest allowable 

revenue amount or, if eligible and elected, their lowest indexed allowable 

revenue within the insured’s whole-farm history period.

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

exclusion by the applicable SCD;

(ii) If elected, exclude lowest allowable revenue amount or, if eligible and 

elected, their lowest indexed allowable revenue within the insured’s 

whole-farm history period; and

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

(b) Revenue Exclusion cannot be used in conjunction with Revenue Substitution.

(3) Revenue Cup

Revenue cup, if elected, allows the replacement of the whole-farm historic average 

revenue with an amount equal to 90 percent of the insured’s previous policy year’s 

approved revenue if the insured’s average allowable revenue is less than 90 percent of 

the insured’s previous policy year’s approved revenue.

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

(i) be a carryover insured; and

(ii) elect revenue cup by the applicable SCD.

(b) If elected:

(i) calculate the revenue cup by multiplying the insured’s previous year’s 

approved revenue by 0.90; and
October 2022 FCIC-18160-1 49

71 Revenue (Continued)

B. Insurance Options (Continued) 

(ii) if the average allowable revenue is less than the result of (i), replace the 

whole-farm historic average revenue with the result of (i).

C. Indexed Average Revenue

(1) Indexed revenue may be calculated for persons with increasing revenue to determine if 

increased coverage is applicable. Not all persons qualify to use indexed revenue. If 

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

Document the insured’s choice by selecting either yes or no on item 17 of the WFHR. To 

qualify for indexing, the insured must have five years of farm tax forms in their wholefarm history period and the allowable revenue for either of the two most recent tax 

years in the whole-farm history period must be greater than the simple average 

allowable revenue calculated for the whole-farm history period.

(2) To calculate the simple indexed average revenue.

(a) Divide the allowable revenue for each tax year in the whole-farm history period 

by the allowable revenue from the previous tax year. There is no calculation for 

the first year in the whole-farm history period because there is no previous tax 

year. Round the result to three decimal places. The result is capped at 1.200 

and cupped at 0.800.

Example: Insured A has the following allowable revenue: $250,500 for 2017 

(Year 1); $300,256 for 2018 (Year 2); $99,350 for 2019 (Year 3); 

$98,750 for 2020 (Year 4); and $215,515 for 2021 (Year 5). The 

following is the result of the first step in the indexed average 

revenue calculation by year.

2018 = 1.199 ($300,256 ÷ $250,500)

2019 = 0.331 ($99,350 ÷ $300,256) (cupped at .800)

2020 = 0.994 ($98,750 ÷ $99,350) 

2021 = 2.182 ($215,515 ÷ $98,750) (capped at 1.200)

(b) Sum the results for each year obtained in (a), then divide the total by four to 

determine the revenue trend factor. Round result to three decimal places. The 

result is floored at 1.000.

Example: Including the cups and caps, the result of the second step in the 

indexed average revenue calculation is 1.048 [(1.199 + 0.800 + 

0.994 + 1.200) ÷ 4].
October 2022 FCIC-18160-1 50

71 Revenue (Continued)

C. Indexed Average Revenue (Continued) 

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

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

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

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

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

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

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

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

(g) Raise the result of (b) to the second power. Round result to three decimal 

places.

Example: The is 1.098 (1.048 × 1.048).

(h) Multiply the result of (c) by the year 1 allowable revenue. Round result to 

nearest whole dollar.

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

(i) Multiply the result of (d) by the year 2 allowable revenue. Round result to 

nearest whole dollar.

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

(j) Multiply the result of (e) by the year 3 allowable revenue. Round result to 

nearest whole dollar.

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

(k) Multiply the result of (f) by the year 4 allowable revenue. Round result to 

nearest whole dollar.

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

(l) Multiply the result of (g) by the year 5 allowable revenue. Round result to 

nearest whole dollar.

Example: The result is $236,635 (1.098 × $215,515).
October 2022 FCIC-18160-1 51

71 Revenue (Continued)

C. Indexed Average Revenue (Continued) 

(3) To calculate the indexed average revenue:

(a) sum the indexed revenue for each year in the whole-farm history period, after 

any applicable adjustments; and

(b) divide the result of (a) by the number of years in the whole-farm history period 

(rounded to the nearest whole dollar).

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

(i) the result of (b); or

(ii) the highest allowable revenue (column 7 of the WFHR) amount in the 

whole-farm history period.

Example 1: Insured does not elect an insurance option and the highest 

allowable revenue within the whole-farm history period is 

$300,256; their indexed average revenue is $236,310 

[($331,913 + $379,524 + $119,816 + $113,661 + $236,635) 

÷ 5].

Example 2: Insured elects to use Revenue Substitution Option (60 

percent of their simple indexed average revenue option), 

$141,786 [($331,913 + $379,524 + $119,816 + $113,661 + 

$236,635) ÷ 5] × 0.60, to replace any years less than that 

amount within their whole-farm history period. Insured 

has two years within their history that falls below 60 

percent of their simple indexed average revenue 

($119,816 and $113,661). Using the new allowable 

revenue amounts and since the highest allowable revenue 

amount within the whole-farm history is $300,256, their 

indexed average revenue is $246,329 [($331,913 + 

$379,524 + $141,786 + $141,786 + $236,635) ÷ 5].

Example 3: Insured elects to use the Revenue Exclusion Option (drop 

the lowest indexed revenue amount option within their 

whole-farm history period). After dropping the lowest 

amount within their history ($113,661) and since the 

highest allowable revenue amount within the whole-farm 

history is $300,256, the insured average allowable revenue 

is $266,972 [($331,913 + $379,524 + $119,816 + $236,635) 

÷ 4].
October 2022 FCIC-18160-1 52

71 Revenue (Continued)

D. Average Allowable Revenue

The following calculation will only apply if the insured chooses not to index and either elects or 

not, one of the available insurance options offered in Subparagraph 71B. Otherwise, the 

average allowable revenue will equal the simple average as calculated below.

To calculate the average allowable revenue:

(1) sum the allowable revenue for each year in the whole-farm history period, after any 

applicable adjustments; and

(2) divide the result of (1) by the number of years in the whole-farm history period 

(rounded to the nearest whole dollar).

Example 1: Insured does not elect an insurance option; their average allowable revenue is 

$192,874 [($250,500 + $300,256 + $99,350 + $98,750 + $215,515) ÷ 5].

Example 2: Insured elects to use the Revenue Substitution Option (60 percent of their simple 

average allowable revenue option), $115,725 [($250,500 + $300,256 + $99,350 + 

$98,750 + $215,515) ÷ 5] × 0.60, to replace any years less than that amount 

within their whole-farm history period. Insured has two years within their 

history that falls below 60 percent of their simple average allowable revenue 

($99,350 and $98,750). Using the new allowable revenue amounts, the insured’s 

average allowable revenue is $199,544 [($250,500 + $300,256 + $115,725 + 

$115,725 + $215,515) ÷ 5].

Example 3: Insured elects to use the Revenue Exclusion Option (drop the lowest allowable 

revenue amount option within their whole-farm history period). After dropping 

the lowest amount within their history ($98,750), the insured average allowable 

revenue is $216,405 [($250,500 + $300,256 + $99,350 + $215,515) ÷ 4].

E. Expanded Operation Average Revenue

Expanded operation procedures are not applicable to Micro Farm.

(1) Expanded operation average revenue will be calculated for all applicants/insureds when 

the insured provides documentation indicating their operation is physically expanding 

either by adding production capacity to their farm operation (i.e., by adding land or an 

addition of a greenhouse), increasing the use of existing production capacity (e.g., by 

double-cropping existing land or beginning production on high density blocks or 

orchards), or making physical alterations to existing production capacity (e.g., by adding 

irrigation to existing land or beginning production on certified organic acreage) and is 

approved by the AIP. If so:

(a) 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:
October 2022 FCIC-18160-1 53

71 Revenue (Continued)

E. Expanded Operation Average Revenue (Continued)

(i) For a farm operation that is expanding during the current insurance 

period, by the date on which the insured is required to submit their

Revised Farm Operation; or

(ii) For a farm operation where the expansion occurred during the lag year, 

by the later of the SCD or the first days of their insurance period.

(b) The AIP will determine the amount of revenue from the expansion, using 

information applicable to the current insurance period (i.e., expected yield and 

value), approved for the purpose of determining the expanding operation factor. 

(c) If more than one expansion (lag year and current year) is applicable to the farm 

operation, the AIP will determine the amount of revenue for each expansion 

separately. The total expanding operation factor will not exceed 1.35 for 

expansions not due solely to certified organic sources. Refer to Subparagraph

71E(1)(f)(iv). For expansions that are due solely to certified organic sources, the 

expansion amount cannot exceed the greater of 35 percent of the simple 

average allowable revenue or $500,000. Refer to Subparagraph 71E(1)(g). 

(d) If the insured has also made a physical reduction in their production capacity, 

the AIP will only consider the net increase in production capacity from the 

highest amount of production capacity of the years in the insured’s whole-farm 

history period when determining their expanding operation factor.

Example: The insured’s operation controlled the following acres within the 

whole-farm history period.

2017 – 500 acres

2018 – 450 acres

2019 – 400 acres

2020 – 400 acres

2021 – 350 acres

2022 – 350 acres

They are requesting an expanding operation factor based on 200 

added acres in the current year (2023) to their existing 350 acres 

for a new total of 550 acres. Their net increase in acres is 50 acres 

(550 acres - 500 acres) due to 500 acres (2017) being their highest 

amount of production capacity within their whole-farm history 

period.
October 2022 FCIC-18160-1 54

71 Revenue (Continued)

E. Expanded Operation Average Revenue (Continued) 

(e) If the insured’s farm operation is expanding due to adding organic practice 

production capacity or beginning production on existing production capacity 

converted to an organic practice, they may elect to submit only the organic 

practice expansion for consideration to be approved as an expanding operation. 

If they do, they may only qualify for calculating their expanding operation factor 

using the organic expansion calculation in Subparagraph 71E(1)(g) below. The 

AIP will only consider the net increase in organic practice production capacity 

from the highest amount of organic practice production capacity of the years in 

the insured’s whole-farm history period when determining their expanding 

operation factor.

(f) For expansions not due solely to certified organic sources, the expanded 

operation adjusted revenue will be calculated as follows for: 

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

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

Example: Insured has the following allowable revenue: 

$250,500 for 2017; $300,256 for 2018; $99,350 for 

2019; $98,750 for 2020; and $215,515 for 2021. 

The insured’s simple average revenue is $192,874 

[($250,500 + $300,256 + $99,350 + $98,750 + 

$215,515) ÷ 5].

(B) Add the amount of revenue from the physical expansion of the 

farm operation that will or has occurred during the current policy 

year, as determined by the AIP, to the Simple Average Allowable 

Revenue.

Example: For the current policy year, the insured has added 

500 acres to the farm operation with an additional 

$100,000 of expected revenue determined by the 

AIP. $292,874 ($192,874 + $100,000)

(C) Divide the result of (B) by the result of (A). Round the result to 

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

Expanding Operation Factor.

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

(D) Multiply the result of (C) by the result of (A) to determine the 

Expanded Operation Adjusted Revenue.

Example: $192,874 × 1.35 = $260,380
October 2022 FCIC-18160-1 55

71 Revenue (Continued)

E. Expanded Operation Average Revenue (Continued) 

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

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

Example: Insured has the following allowable revenue: 

$250,500 for 2017; $300,256 for 2018; $99,350 for 

2019; $98,750 for 2020 and $215,515 for 2021. 

The insured’s simple average revenue is $192,874 

[($250,500 + $300,256 + $99,350 + $98,750 + 

$215,515) ÷ 5].

(B) Add the amount of revenue from the physical expansion of the 

farm operation that will or has occurred during the current policy 

year, as determined by the AIP, to the Simple Average Allowable 

Revenue.

Example: In 2022, the lag year, the insured added 100 acres 

to the farm operation which generated an 

additional $25,000 of expected revenue 

determined by the AIP. $217,874 ($192,874 + 

$25,000). 

(C) Divide the result of (B) by the result of (A). Round the result to 

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

Expanding Operation Factor.

Example: $217,874 ÷ $192,874 = 1.13

(D) Multiply the result of (C) by the result of (A) to determine the 

Expanded Operation Adjusted Revenue.

Example: $192,874 × 1.13 = $217,948

(iii) For the subsequent policy year (2024), an expansion that occurred in the 

current policy year (2023) will be determined in accordance with (f)(ii) 

above.

Example: An expansion occurred in the current policy year 2023. 

The Whole-Farm History period for this expansion is 2017, 

2018, 2019, 2020, and 2021 with 2022 being the lag year. 

For the subsequent policy year 2024, the Whole-Farm 

History period for the expansion occurring in 2023 is 2018, 

2019, 2020, 2021, and 2022 with 2023 being the lag year.
October 2022 FCIC-18160-1 56

71 Revenue (Continued)

E. Expanded Operation Average Revenue (Continued) 

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

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

Example: Insured has the following allowable revenue: 

$250,500 for 2017; $300,256 for 2018; $99,350 for 

2019; $98,750 for 2020; and $215,515 for 2021. 

The insured’s simple average revenue is $192,874 

[($250,500 + $300,256 + $99,350 + $98,750 + 

$215,515) ÷ 5]. 

(B) Determine the amount of revenue from the physical expansion of 

the farm operation that will occur during the current policy year.

Example: For the current policy year, the insured has added 

500 acres to the farm operation with an additional 

$100,000 of expected revenue determined by the 

AIP.

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

$100,000)

(D) Determine the amount of revenue from the physical expansion of 

the farm operation that occurred during the lag year using 

information applicable to the current policy year (i.e., expected 

values).

Example: In 2022, the lag year, the insured added 100 acres 

to the operation which generated an additional 

$25,000 of expected revenue as determined by the 

AIP.

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

$25,000)

(F) Divide the result of (E) by the result of (A). Round the result to 

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

Expanding Operation Factor.

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

(G) Multiply the result of (A) by the result of (F) to determine the 

Expanded Operation Adjusted Revenue.

Example: $192,874 × 1.35 = $260,380
October 2022 FCIC-18160-1 57

71 Revenue (Continued)

E. Expanded Operation Average Revenue (Continued) 

(g) For expansions due solely to certified organic sources in the current year and/or 

the lag year, the expanded operation adjusted revenue will be calculated as 

follows: 

The following examples will be used for the purposes of organic expanding 

operation calculations below:

Example 1: The insured has a Simple Average Allowable Revenue of $100,000. 

The insured has acquired an additional 25 certified organic acres 

that will produce $100,000 in allowable revenue in the current 

year.

Example 2: The insured has a Simple Average Allowable Revenue of 

$1,500,000. The insured acquired an additional 25 certified 

organic acres that will produce $100,000 in allowable revenue in 

the current year. The insured also acquired 75 certified organic 

acres in the lag year that produces $250,000.

(i) Multiply the Simple Average Allowable Revenue by 0.35.

Example 1: $35,000 ($100,000 × 0.35)

Example 2: $525,000 ($1,500,000 × 0.35)

(ii) Determine the greater of $500,000 or the result of (i). 

Example 1: $500,000

Example 2: $525,000

(iii) Add the Simple Average Allowable Revenue to the result of (ii). 

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

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

(iv) Add the amount of revenue from the certified organic expansion, as 

determined by the AIP, to the Simple Average Allowable Revenue.

Example 1: $200,000 ($100,000 + $100,000)

Example 2: $1,600,000 ($100,000 + $1,500,000)
October 2022 FCIC-18160-1 58

71 Revenue (Continued)

E. Expanded Operation Average Revenue (Continued) 

(v) Add the result of (iv) to the amount of revenue from the certified organic 

expansion that occurred in the lag year, as determined by the AIP.

Example 1: $200,000 ($200,000 + $0.00)

Example 2: $1,850,000 ($1,600,000 + $250,000)

(vi) Determine the lesser of the results of (iii) and (v). 

Example 1: $200,000

Example 2: $1,850,000

(vii) Divide the result of (vi) by the Simple Average Allowable Revenue to 

determine the expanding operation factor. Round the result to two 

decimal places.

Example 1: 2.00 ($200,000 ÷ $100,000)

Example 2: 1.23 ($1,850,000 ÷ $1,500,000)

(viii) Multiply the Simple Average Allowable by the result of (vii) to determine 

the Expanded Operation Adjusted Revenue.

Example 1: $200,000 ($100,000 × 2.00)

Example 2: $1,845,000 ($1,500,000 × 1.23)

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

(a) Crop rotation, planting pattern change (excluding anything allowed in 

Subparagraph 71E(1)) or planting a higher value commodity without changes to 

the farm operation’s existing production capacity.

(b) For perennial crops, beginning production on an orchard or grafted acreage (or 

other unit of land) if any revenue from the production on that land was 

generated during the insured’s whole-farm history period.

(c) For livestock, an increase in the number of livestock expected to produce 

revenue during the insurance period with no other changes in the facilities or 

production capacity.

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

(a) the insured provides documentation verifying they actually undertook their 

proposed expansion as indicated on the IFOR; and
October 2022 FCIC-18160-1 59

71 Revenue (Continued)

E. Expanded Operation Average Revenue (Continued) 

(b) the expansion was completed in time for it to provide the stated revenue to the 

farm operation during the insurance period.

(4) Any time the AIP determines the information used to establish the insured’s expanding 

operation factor does not reflect the revenue the insured could have expected to 

receive when the commodity would be harvested, the AIP will revise the expanding 

operation factor to the amount determined to be correct.

F. Whole-Farm Historic Average Revenue

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

(1) average allowable revenue;

(2) indexed average revenue (if applicable);

(3) 90 percent of the insured’s previous year’s approved revenue (if elected); or

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

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

G. Total Expected Revenue

The Total Expected Revenue is determined by the commodities listed on the FOR and valued in 

accordance with the WFRP policy and Exhibit 18. The Total Expected Revenue is used in 

determining premium amount and approved revenue.

H. Approved Revenue

The approved revenue is determined by the AIP and is used to calculate the WFRP coverage 

amount and premium.

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

(a) total expected revenue; or 

(b) whole-farm historic average revenue.

(2) For Micro Farm, the approved revenue is determined on the FOR and must not exceed 

$350,000 for the first year of coverage or $400,000 for a carryover insured.

72 (Reserved)

***
October 2022 FCIC-18160-1 60

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 (excluding 

farms covered under Micro Farm), those inventory items should be recorded on the 

Market Animal and Nursery Inventory Report because they are valued at both the 

beginning and ending of the insurance period.

(b) All other inventory items (including commodities covered under Micro Farm) are

recorded on the Inventory Report and valued in accordance with Exhibits 5 and 7.

(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;

(b) maintain an accounting of commodities on hand at the beginning and at the end of the 

insurance period;

(c) determine the amount of revenue earned during the insurance period for commodities, 

including nursery, greenhouse, and animals, that are held for more than one policy year 

to realize a gain in revenue because of an increase in size or maturity, such as trees, 

shrubs, and bushes in a nursery; and

(d) calculate RTC when there is loss claimed.

Important: Refer to Paragraph 106 for RTC 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 RTC at claim 

time.
October 2022 FCIC-18160-1 61

73 Inventory (Continued)

(5) The inventory report must provide a count or measurement of the insured’s quantity of the 

commodity in inventory using the unit of measure in which the commodity is marketed, such as 

bushels, tons, pounds, boxes, head, or carton. Units of measure can be found in Exhibit 20. 

The inventory should list multiple lines for a commodity if the type or variety has local market 

expected values that vary substantially by type or variety.

(6) All insurable commodities that are stored, unharvested, held for sale, or held for on-farm use 

but are not used by the end of the insurance period must be included on the Inventory Report 

or Market Animal and Nursery Inventory Report regardless of whether the commodity was 

harvested, held to realize a gain in maturity or size, or was simply unsold.

(7) The information on the Inventory Report and the Market Animal and Nursery Inventory Report 

must be substantiated by the AIP using verifiable records, including but not limited to:

(a) storage records from elevators, packing houses, warehouses, or other commercial 

storage facilities;

(b) measurements of farm stored production if measured by an AIP, FSA, or other USDA 

authorized representative;

(c) complete and accurate count of animals; and

(d) complete and accurate count of nursery commodities.

(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.
October 2022 FCIC-18160-1 62

74 Accounts Receivable Report

The Accounts Receivable Report is not required for each year in the five year whole-farm history 

period. The report is only required for the current policy year, if applicable.

(1) The Beginning Accounts Receivable Report will be valued on the first day of the insurance 

period and submitted by:

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

(b) the later of the date:

(i) the insured submits their application; or

(ii) last day of the month in which the fiscal year begins if the insured is an early or 

late fiscal year filer.

(2) The Ending Accounts Receivable Report will be valued on the last day of the insurance period 

and submitted by the earlier of:

(a) the time a claim is submitted for indemnity or the SCD of the subsequent policy year for 

insureds that are calendar year tax filers; and

(b) the time a claim is submitted for indemnity or 60 days after the end of the insurance 

period for insureds that are early or late fiscal year tax filers.

(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 Report. If the value is shown on the farm tax forms due to the 

accounting method, then the commodity would not be listed on the Accounts Receivable

Report. The amount of accounts receivable will count as revenue for the insurance period and 

is entered in item 23 of the Claims for Indemnity Form.

Example: Insured A sold and delivered 100 boxes of cucumbers to a processor for a 

specified price but has not received the payment from the processor. Insured A 

has another 200 boxes of cucumbers they have not sold and for which there is 

no specified price. Insured A includes the 100 boxes of cucumbers sold to the 

processor in the Accounts Receivable Report and includes the other 200 boxes in 

the Inventory Report.

The values in accounts receivable must be the amount due the insured for the commodity 

minus the cost, or other basis, of the commodity if the commodity was purchased for resale.

Example: 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.
October 2022 FCIC-18160-1 63

74 Accounts Receivable Report (Continued)

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

the beginning Accounts Receivable Report but are then collected by the insured during the 

insurance period, these accounts receivable will not be included in cash receipts for the 

insurance period because they are revenue from the previous year. These amounts should be 

removed from the commodity income on the Allowable Revenue Worksheet in the adjustments 

to income.

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

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

records.

Refer to Paragraph 146 for instructions on how to handle co-operative cash payments and 

allocations.

***

75-90 (Reserved)
October 2022 FCIC-18160-1 64

PART 4: LOSS AND CLAIM INFORMATION

Section 1 Loss Information

91 Insurable Losses

WFRP provides protection against the loss of approved revenue due to unavoidable natural causes that 

occur during the insurance period.

A decline in local market price will be presumed to be from unavoidable natural causes unless FCIC 

specifically identifies a man-made cause that resulted in a measurable change in the price. A decline in 

local market price due to man-made causes is not an insurable cause of loss.

For the initial year insured, loss of revenue from damage or decline in local market price that occurs 

earlier than 10 days after the AIP accepts the application is not covered.

Once the AIP accepts a completed and signed application, as well as all other reports required by 

Section 15 of the policy that are due by SCD to the AIP is enough to start the 10-day time frame for 

insurance attachment. This will allow the AIP the time needed to properly underwrite the WFRP policy 

to determine eligibility and establish the appropriate guarantee for the insured.

For carryover insureds, natural causes that occurred during the previous insurance period that result in 

a loss of revenue for the current insurance period are covered.

Exceptions: Insurance will not be provided for declining prices that continue into the current 

insurance period or for changes due to a reduction of irrigation water supply that are 

known, or should be known, at the time the IFOR is submitted. For example, farm 

operations experiencing a reduction or lack of irrigation water that is known or apparent 

prior to when the IFOR is submitted must reduce the amount of acreage to be planted 

under the irrigated practice or, if irrigation water is no longer available, record the 

commodities as a non-irrigated practice with appropriately reduced yields on the IFOR. 

Follow the expected value guidelines for determining expected values at the time the 

IFOR is completed when declining prices from the previous insurance period continue 

into the current insurance period.

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.
October 2022 FCIC-18160-1 65

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, including insolvency of the buyer identified in 

the marketing contract.

(10) Lack of labor to properly care for, harvest, or perform any necessary production activities for 

any insured commodity.

(11) Failure to receive payment for produced commodities.

(12) Failure to follow the requirements contained in any processor contract.

(13) Abandonment of an insured commodity.

(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.
October 2022 FCIC-18160-1 66

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.

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

acceptable level.

(a) The maximum acceptable hemp THC level will be the lesser of: 1) 0.3 percent, allowing 

for the measurement of uncertainty provided by the testing laboratory; or 2) the 

acceptable level of the applicable governing authority (State or Tribe) in which the 

insured crop is grown, allowing for the measurement of uncertainty provided by the 

testing laboratory. If the test results provided by the testing laboratory do not include a 

measure of uncertainty, the measurement of uncertainty will be considered zero 

percent (0.000 percent).

Example: If a laboratory reports a result as 0.35 percent with a measurement of 

uncertainty of ±0.06, the distribution or range is 0.29 to 0.41 percent. 

Because 0.3 percent is within that distribution or range, the sample, and 

the lot it represents, is considered hemp as defined. However, if the 

measurement of uncertainty for that sample was 0.02 percent, the 

distribution or range is 0.33 to 0.37 percent. Because 0.3 percent or less 

is not within that distribution or range, the sample is not considered 

hemp as defined.

(b) The sale of hemp with a THC level greater than the maximum acceptable level as stated 

in (a) will be considered producing and selling a controlled substance and will result in 

voidance of the insured’s WFRP policy. Refer to Paragraph 126. 

Uninsurable losses will be valued and added to the RTC, which will decrease any loss payments. RTC 

must be increased for commodities that are damaged by anything other than an insured cause of loss. 

If a commodity deteriorates while in storage and is sold for less than the local market value for the 

undamaged commodity, the RTC must be increased by an amount equal to the difference between the 

dollar amount received for the damaged commodity and the dollar amount that would have been 

received for the commodity using the local market value if it was not damaged.
October 2022 FCIC-18160-1 67

93 Quality Determinations

When the commodity is damaged (refer to Exhibit 2 for damaged definition) by an insurable cause of 

loss, the WFRP policy provides coverage for quality by using the actual price received or the local 

market value, not less than zero, for unsold damaged commodities. Refer to Subparagraph 92(15) for 

commodities that are in storage.

(1) If a commodity is damaged by an insurable or uninsurable COL resulting in a reduction of 

quality, the insured must comply with their duties detailed in Subparagraph 94A. 

(2) The insured must maintain documentation which includes enough detail to identify the specific 

lot, bin, cartons, etc. of the damaged commodity.

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 they are unable 

to market the commodity and document the reason the commodity cannot be 

marketed (e.g., quarantine, failure to meet the requirements of a processor contract, 

quality damage, etc.).

(3) The insured is not required to report general market fluctuations that are not directly 

related to the condition or marketability of commodities on the farm operation.

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

(a) protect the commodity from further damage by providing sufficient care if the 

cost of the care will not exceed the value of the commodity; and

(b) cooperate with the AIP in the settlement or investigation of the claim, and, as 

often as the AIP reasonably requires:

(i) allow the AIP to inspect the damaged commodity;

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

and

(iii) provide the AIP with acceptable records and documents requested and 

permit the AIP to make copies of those records or documents.
October 2022 FCIC-18160-1 68

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

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

(5) Farm operations that suffer a reduction of irrigation water due to an insured cause of 

loss during the insurance period must be managed consistent with GFP to maximize the 

allowable revenue for the entire operation to mitigate, as much as possible, the adverse 

impacts of insufficient irrigation water.

(6) The insured must notify the AIP and obtain the AIP’s consent before abandoning, 

disposing of, or destroying any damaged or undamaged insured commodities, or selling 

a commodity for any reason other than its intended purpose or to someone other than 

a disinterested third party.

(a) If the AIP does not inspect the insured commodity within 15 days after 

notification, the insured may abandon, dispose of, sell, or destroy the insured 

commodity without the AIPs consent. THIS IS NOT APPLICABLE TO REPLANTS.

(b) If the AIP determines that expenses associated with the harvest or preparation 

of a commodity would be greater than the allowable revenue from the sale of 

the commodity, the AIP will not include the potential revenue of the commodity 

when determining RTC if the commodity is not harvested.

(i) The AIP must determine the associated expenses are consistent with 

previous years’ expenses and similar operations.

(ii) the AIP must verify the insured does not traditionally harvest the 

commodity at a cost below the normal cost to harvest the commodity.

Example: A producer is required to grow a specific variety of fruit that has a 

low market value to meet processor requirements. However, due 

to unavailability of labor, the producer is unable to harvest the 

crop. The unavailability of labor is considered an uninsured COL 

and any portion of the commodity not harvested would be 

counted as RTC at the expected value.

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

(a) the AIP will consider any loss on the portion of the commodity (damaged acres 

or other applicable unit of measure for the commodity) for which the insured 

failed to provide notice to be due solely to uninsured causes, with the expected 

revenue of the lost commodity included as RTC, unless the AIP determines that 

they have the ability to accurately determine the amount and cause of loss; and

(b) the insured will be required to pay all premiums owed for the policy, including 

premium for any portion of the commodity the AIP considers damaged due 

solely to uninsured causes.
October 2022 FCIC-18160-1 69

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

B. AIP Duties in the Event of Damage or Loss

(1) The AIP will recognize and apply the claim adjustment and other procedures established 

or approved by FCIC.

(2) The AIP will verify completeness and accuracy of the insured’s WFHR, FOR, Beginning 

and Ending Inventory, Allowable Revenue Worksheet, Beginning and Ending Accounts 

Receivable, and any other verifiable documentation and/or information used to 

complete the Claim for Indemnity Form.

(3) The AIP will use the insured’s farm tax forms and verifiable records requested by the AIP 

that were used to create the farm tax forms, to calculate the allowable revenue for the 

policy year including any required adjustments, to determine if the insured has an 

insurable loss.

(4) If the insured has complied with all the policy provisions, the AIP will pay the loss for a 

replant or for a claim for indemnity within 30 days after:

(a) agreement is reached with the insured;

(b) completion of arbitration or appeal proceedings;

(c) completion of any investigation by USDA, if applicable, of the insured’s current 

claim for indemnity if no evidence of wrongdoing is found. (If any evidence of 

wrongdoing is discovered, the amount of any indemnity, or replant overpayment 

as a result of such wrongdoing may be offset from any indemnity owed to the 

insured); or

(d) the entry of a final judgment by a court of competent jurisdiction.

(5) In the event the AIP is unable to pay the insured’s loss within 30 days, the AIP will give 

the insured notice of their intentions within the 30-day period.

(6) The AIP may defer, at their discretion, the claim adjustment up to 180 days from the 

date determined in Subparagraph 107A(1) when commodities produced during the 

insurance period are still in storage or have not been sold.

95 Replant Payment

(1) To qualify for a replant payment:

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

(b) the damaged commodity must be an annual plant;

(c) the insured commodity must be damaged by an insurable cause;
October 2022 FCIC-18160-1 70

95 Replant Payment (Continued)

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

(e) the acreage replanted must be at least 20 acres or 20 percent of the insured planted 

acreage for the commodity to be replanted;

For commodities planted in different, but distinct growing seasons, determinations of 

the 20 acre or 20 percent rule should be made based on the specific planting period for 

the commodity.

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

reported on the IFOR to be planted on the same 50 acres. 12 acres of 

spring bell peppers need to be replanted and the AIP determines that it is 

practical to replant. The 20/20 rule for spring planted bell peppers is met 

for the 50 acres reported for spring bell peppers.

Example 2: The insured plants 50 acres of bell peppers and 50 acres of hot peppers in 

a 100-acre field. Both are Fresh Market and are both reported under the 

commodity code of Peppers (Fresh Market) in Polk County, FL. The 

insured needs to replant 12 acres of bell peppers and the AIP determines 

that it is practical to replant. However, the 12 acres to be replanted does 

not meet the 20/20 rule for the total 100 acres of Peppers (Fresh 

Market).

Example 3: An insured reports and plants 100 acres of winter wheat. On that same 

100 acres, the insured reports and intends to plant soybeans. The winter 

wheat is harvested, and the soybeans are planted as intended. 25 acres 

of the soybeans are lost due to an insured cause of loss and need to be 

replanted and the AIP determines that it is practical to replant the acres. 

The 25 acres to be replanted meet the 20/20 rule of the double cropped 

soybean acreage.

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

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

(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;

(c) for any commodity on the farm operation that is also insured by another Federally 

reinsured policy issued under the authority of the Act for which replant payments are 

also available under the other policy;

(d) for industrial hemp; or
October 2022 FCIC-18160-1 71

95 Replant Payment (Continued)

(e) until a RFOR is submitted.

(f) for any commodity insured under Micro Farm.

A Replant Payment Worksheet must be completed if the insured qualifies for a replant payment. In 

the Narrative Section of the worksheet or on a Special Report, document how the qualifications for a 

replant payment have been met.

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

the lesser of:

(a) the actual cost, before share, to replant the commodity; or

(b) 20 percent of the expected revenue per acre for the commodity as reported in the RFOR 

(column 14E/14A) multiplied by the coverage level.

As shown in the following example, the maximum amount of the replant payment is multiplied by the 

share recorded in item 14C of the RFOR. Show all calculations in the Narrative section of the Replant 

Payment Worksheet or on a Special Report.

Example: 50 acres of commodity replanted

Expected Revenue per acre guarantee = $750 (column 12 of the FOR)

Actual cost per acre to replant prior to share = $75.00 (verified from actual records)

Maximum Replant Amount: 20% of the expected revenue per acre multiplied by 

coverage level= $127.50 ($750 per acre guarantee × 20%) × 85%

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

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

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

96-100 (Reserved)
October 2022 FCIC-18160-1 72

Section 2 Claim Information

101 Adjustments to Revenue

A. General Information

Adjustments to revenue are required for claim purposes regardless of the accounting method, 

cash or accrual, used by the insured. For claims purposes, revenue will be considered earned 

regardless of whether the revenue is reported to the IRS during the tax period applicable to the 

policy year. Refer to Paragraph 7 for information about cash and accrual accounting methods.

Adjustments to revenue for increases and decreases in inventory or accounts receivable for the 

policy year are made by subtracting the beginning balance from the ending balance. Positive 

amounts are added to the allowable revenue and negative amounts are subtracted. Refer to 

Subparagraph 101B and the Claims for Indemnity Form for adjustments for inventory and 

accounts receivable.

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 Report. Negative numbers 

will make the number smaller, positive numbers will make the number larger. The final result 

may be positive or negative. The final result is put in item 23 on the Claim for Indemnity Form.
October 2022 FCIC-18160-1 73

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).

102 (Reserved)

***

103 Changes Occurring Within Policy Year

A. Effect of Changes

At the time a claim is filed, the AIP must evaluate the effect of any unreported changes that 

affects the approved revenue. The AIP must obtain, from the insured, documentation 

indicating the reasons for discrepancies identified between the information provided on the 

RFOR and the Claim for Indemnity Form when a claim is filed.
October 2022 FCIC-18160-1 74

103 Changes Occurring Within Policy Year (Continued) 

A. Effect of Changes (Continued) 

Based on the documentation provided and the evaluation conducted, the AIP must determine 

whether the approved revenue should be reduced, or liability denied according to the WFRP 

policy. Reducing the approved revenue will require revising the FOR.

A reduction in approved revenue or a denial of liability is not required when a commodity is not 

planted due to an unavoidable natural cause, such as a flood, which prevents the crop from 

being planted. When a comparable alternative commodity is established to replace the 

prevented commodity after the natural disaster, then an adjustment in revenue is required.

Structural changes may affect the approved revenue for the insured. A structural change of the 

insured’s farm operation is any change that alters the insured’s revenue compared to the 

insured’s whole-farm historic average revenue including, but not limited to, changes in:

(1) ownership;

(2) business structure;

(3) size of operation;

(4) management practices;

(5) type of farm operation; and

(6) accounting methods.

Other changes in the insured’s farm operation can also affect the approved revenue. Such 

changes include, but are not limited to:

(1) intended commodities not planted;

(2) different commodities planted than were intended;

(3) significantly more or fewer acres planted than intended; and

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

B. Farm Operation Report Revisions

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

requires revision and the total expected revenue changes. ***

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

determined to be incorrect.
October 2022 FCIC-18160-1 75

104 Changes That Occurred in Year Prior to Policy Year

Structural changes that occurred prior to the current policy year must be identified on the current 

year’s FOR and reflected in the total expected revenue for the current policy year. Refer to Paragraph 

103 for description of possible structural changes.

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

A. New Insureds

WFRP does not provide coverage for losses that occur earlier than 10 days after the AIP 

receives a completed application. The expected revenue reported for the policy year must not 

include any amount that was lost because of such damage or price fluctuation.

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 IFOR is submitted. 

Refer to Paragraph 91. 

However, any revenue lost because of damage or price fluctuations will only be covered the 

year immediately following the insurance period when the loss occurred and will not be 

covered for subsequent years.

Example: Producer A’s perennial crop suffered ice damage during the winter of 2022 that 

will cause a loss of revenue from the crop in 2023. The damage did not affect 

2022 revenue. Producer A was insured under WFRP for 2022, will continue 

coverage in 2023, and met all WFRP requirements, including GFPs. The total 

amount of revenue expected for the perennial crop before the ice damage may 

be reported as expected revenue on the 2023 FOR. However, beginning with the 

2024 policy year, any loss of revenue from the ice damage that occurred in 2022 

will not be covered. The expected revenue reported for the perennial crop in 

2024 and subsequent policy years must not include any amount that was lost 

because of the 2022 ice damage.

106 Revenue-to-Count

RTC is the allowable revenue produced successfully in the insurance period. It also includes revenue 

amounts determined to be produced by the inventory adjustments, accounts receivable adjustments, 

revenue representing any uninsurable losses, value assigned for abandoned commodities, indemnities 

from other crop insurance policies, and net gains from commodity hedging or speculation.
October 2022 FCIC-18160-1 76

106 Revenue-to-Count (Continued)

The following provides the steps for calculating RTC:

(1) Determine insured’s allowable revenue for the policy year.

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

(3) Adjust the allowable revenue determined in step two by adding or subtracting, as applicable, 

required adjustments for accounts receivable. 

(4) Adjust the allowable revenue determined in step three by adding or subtracting, as applicable, 

required adjustments on Inventory Report for commodities not held to realize a gain.

(5) Adjust the allowable revenue determined in step three by adding or subtracting, as applicable, 

required adjustments on Inventory Report for commodities not held to realize a gain.

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

(7) Add the value assigned to abandoned acreage/commodities to the allowable revenue 

determined in (6). 

(8) Add any net gain from commodity hedging and speculation, not less than zero, to the allowable 

revenue determined in (7). 

(9) Add the total of any indemnity received from an insurance policy covering insured commodities 

authorized under the Act which covers commodities insured under WFRP, that applies to the 

portion of the commodity insured under WFRP, to the allowable revenue determined in step 

eight.

Exceptions: Do not include:

(a) ARC/PLC payments;

(b) Replant payments; or

(c) indemnities paid by another policy for damage or loss to a commodity 

that is not covered by WFRP such as timber, animals for show, pasture or 

rangeland insured under the Rainfall Index or Vegetation Index policies, 

or commodities or portions of commodities produced for feed for use on 

the insured’s operation.

(10) Add any expense amount which reduced the price the insured received for a commodity that 

were not considered when determining the expected value of that commodity to the allowable 

revenue determined in step 9. Unless it is determined that the reduction was due to an 

insurable COL occurring prior to the harvest or EOIP on the commodity (for example, if the price 

you receive for a commodity is reduced to expenses such as assessments, seed costs, or drying 

expenses, but the expected value established for the commodity was not reduced by such 

expenses, those expenses will be added as RTC).
October 2022 FCIC-18160-1 77

106 Revenue-to-Count (Continued)

Example: A producers sells his corn production to an elevator; the elevator normally 

charges five cents per bushel for drying costs and deducts that amount from the 

final settlement payment. The producer reports the net settlement on his tax 

returns. If the expected value of the corn is adjusted for the drying expense on 

the IFOR, then the expense will not be considered RTC at claim time. However, if 

the drying expenses exceed the five cents, the amount exceeding the five cents 

will be considered RTC.

(11) Add any NAP payments and indemnities from insurance policies not authorized under the Act 

that exceed the deductible. ***

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.

Reminder: The AIP may defer, at their discretion, the final claim adjustment up to 180 days 

from the date determined in A(1) when commodities produced during the 

insurance period are still in storage or have not been sold.

(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
October 2022 FCIC-18160-1 78

107 Indemnities (Continued)

A. Claim for Indemnity (Continued)

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

The AIPs may require the insured to request IRS send the AIP verification of the 

date insured’s return was filed.

B. Changes to Filed Federal Taxes

Any change to filed Federal tax returns within three years after a claim was settled may require 

an adjustment to the amount of indemnity paid.

The AIP must correct the insured’s indemnity, approved revenue, and WFRP database when a 

change is made to the insured’s filed Federal tax returns that results in a five percent or greater 

change to the insured’s approved revenue or RTC for the applicable policy year. ***

Changes made to filed Federal tax returns include changes made because of amended returns 

or IRS audits.

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, and accounts receivable will be to remove 

production from previous years and to count production 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; and

(2) any indemnities are received, if applicable, from all other Federally reinsured policies 

covering commodities insured under WFRP for the policy year. Copies of complete 

claim forms must be provided to the AIP if these indemnities are paid by another.

E. Calculating Indemnity

An indemnity is earned when the RTC for the policy year is less than the insured revenue and 

losses are due to insurable causes of loss.

The following provides the steps for calculating an indemnity. Refer to Exhibit 15 for the Claim 

for Indemnity Form.

***
October 2022 FCIC-18160-1 79

107 Indemnities (Continued)

E. Calculating Indemnity (Continued)

(1) Multiply the insured’s approved revenue by the insured’s coverage level to calculate the 

Insured Revenue for the year. ***

(2) Determine the amount of NAP payments and indemnities from insurance policies not 

authorized by the Act that exceed the deductible. 

(3) Determine the insured’s Allowable Revenue for the policy year on the Allowable 

Revenue Worksheet using the farm tax forms for the policy year and enter this on the 

Claims Form.

(4) Positive and negative numbers for the Inventory adjustment, Accounts Receivable 

adjustment, Market Animal and Nursery adjustment, and All other adjustments are 

entered on the Claims form and added or subtracted from the result of (3) depending 

upon the sign.

(5) Subtract the insured’s RTC from (4) from the insured revenue to determine the Revenue 

Loss which is the indemnity to be paid.

108-120 (Reserved)
October 2022 FCIC-18160-1 80

PART 5: ADMINISTRATIVE PROVISIONS

121 Assignment of Indemnity

Insureds may assign the right to an indemnity for the policy year only to creditors or other persons to 

whom they have a financial debt or other monetary obligation. The procedures in the GSH regarding 

the assignment of indemnities apply.

122 Transfer of Coverage

Because WFRP is based on the insured’s income tax information, a transfer of coverage to any other 

person will not be allowed unless in the case of death, disappearance, judicially declared 

incompetence, or dissolution of an insured person.

If the farm operation or any part of the farm operation is sold after the RFOR is submitted, coverage 

will not be transferred, and the insured will still be required to pay the premium due.

If part or all the ownership/share of an insured commodity is transferred after the RFOR is submitted, 

coverage for that commodity will not be transferred, and the insured will still be required to pay the 

premium due. If the ownership/share changes prior to the RFOR deadline, the insured commodity will 

be removed from FOR. At claim time, the RTC for the portion of insured commodity transferred after 

the RFOR is submitted will be not less than the expected revenue reported on the RFOR.

123 Other Insurance and NAP

(1) The insured may insure the same commodity under WFRP and under another FCIC plan of 

insurance, if available, at any buy-up level of coverage (and any price percentage), unless 

otherwise specified in the Special Provisions or not allowed by the other policy.

(2) Any other crop insurance policy authorized under the Act purchased by the insured that insures 

commodities covered by WFRP will be considered the primary insurance, and any indemnity 

payment received from such policy will be included as RTC.

Exception: The insured is not eligible for Micro Farm coverage if any commodity on their farm 

operation is insured by another FCIC plan of insurance issued under the authority of the 

Act, including WFRP.

(3) Insureds may obtain NAP and other insurance not authorized under the Act on commodities 

insured under WFRP. Any NAP payments and indemnities the insured receives from such 

insurance policies not authorized under the Act will not be considered RTC under the WFRP 

policy unless the total of all such payments and indemnities exceeds the insured’s deductible. If 

the total of all such indemnities exceeds the insured’s deductible, determine the amount to 

include as RTC as follows: ***

(a) Sum all payments and indemnities received by the insured from NAP and insurance 

policies not authorized under the Act for damage to commodities insured under the 

WFRP policy;
October 2022 FCIC-18160-1 81

123 Other Insurance and NAP (Continued)

(b) Determine the insured’s deductible; and ***

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

Example: The insured’s WFRP deductible is $32,500. The insured received a $30,000 payment 

from NAP and $5,000 indemnity from a policy not authorized under the Act. ***

$35,000 ($30,000 + $5,000) Total payments and indemnities

-$32,500 Insured’s deductible ***

$2,500 RTC

124 Commodities as Payments

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

125 Mediation, Arbitration, and Judicial Reviews of AIP Determinations

The procedures in the GSH apply for:

(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.

126 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.
October 2022 FCIC-18160-1 82

126 Controlled Substance Provisions (Continued)

Example: Insured produces industrial hemp. Upon sampling and testing, the THC level is 

0.301 percent. The state in which the insured produced the hemp allows the 

sale of hemp up to THC levels of 0.399 percent. For the purposes of WFRP, the 

sale of hemp with a THC level greater than 0.3 percent, as determined by a USDA 

approved laboratory, will be considered a controlled substance, and will result in 

voidance of the WFRP policy.

127-140 (Reserved)
October 2022 FCIC-18160-1 83

PART 6: SPECIAL CIRCUMSTANCES

141 Organically Grown Commodities

Prices for individual commodities grown under an organic practice are not determined for operations 

insured under Micro Farm. Therefore, the following procedures in Paragraph 141 are not applicable to 

Micro Farm.

A. Insurability

WFRP insured revenue includes revenue from commodities produced on certified organic 

acreage under an organic plan. If such certified organic production is sold as conventional 

production at a conventional price, the reduction in value received will be due to an uninsured 

COL. Revenue from commodities produced on transitional organic acreage must be listed on a 

separate line of the FOR and identified with the “Method of Establishment” code for 

transitional organic acreage.

B. Expected Values

Organic prices can be used as expected values for certified organic animals, animal products, 

and acreage only. Organic prices do not apply to transitional or buffer zone acreage. Insureds 

that have an organic certificate or documentation they have requested, in writing, a 

certification or other written documentation from a certifying agent by the RFOR deadline, are 

eligible to receive an organic price for their commodities grown on certified organic acreage.

Organic prices can be used if:

(1) the insured has an organic certificate or documentation they have requested, in writing, 

a certification from a certifying agent as indicated by the National Organic Program 

website (organic.ams.usda.gov/Integrity/) and provided to the AIP by the time the RFOR 

is due. If the farm was certified organic previously and the producer has not received 

the updated certification yet, the previous certification may be used. However, if a 

claim is filed, the insured must have received a valid certificate dated prior to harvest 

and provide a copy to the AIP; or

(2) the operator or tenant has an organic certificate.

Exception: 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.
October 2022 FCIC-18160-1 84

141 Organically Grown Commodities (Continued)

B. Expected Values (Continued)

Example: Insured A was issued an organic certificate in 2019 that lists corn, oats, 

and wheat. Insured A reports they intend to plant canola and flax on the 

certified organic acreage in 2020. The organic plan has not been updated 

for 2020 to include canola or flax, and the mentioned crops are not listed 

on the 2019 organic certificate. The category on Insured A’s organic plan 

is “crops.” Therefore, as long as the canola and flax are grown on 

certified acreage identified in the organic plan (not transitional or buffer 

zone), organic prices can be used to determine their expected value.

The FOR will be marked to show which commodities are certified organic. If the AIP questions 

the organic acreage and requests to see the Organic Plan, the insured must be willing to show 

the AIP the Organic Plan to verify locations of their certified organic land.

C. Organic Requirements

The current organic plan and organic certificate in effect must be from a certifying agent, and 

must provide the:

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

(2) effective date of certification, or certificate;

(3) certificate number;

(4) types or categories of commodities;

(5) name and address of the certifying agent; and

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

An organic certificate issued to an operator/tenant may be used to qualify the same acreage for 

a landlord or other similar arrangement.

D. National Organic Program Exception

The National Organic Program standards allow a grower whose annual gross agricultural 

revenue from organic sales is $5,000 or less to be exempt from certification. If a farm can show 

that they have the organic plan in place to grow organic crops and their revenue from organic 

sales is less than $5,000, then they may use organic prices and the farm will be considered to be 

certified under WFRP.
October 2022 FCIC-18160-1 85

141 Organically Grown Commodities (Continued)

E. Change in Farm’s Organic Certification

If any acreage qualifies as certified organic on the date the RFOR is completed, and the 

certification is subsequently surrendered by the farm, suspended, or revoked, the acreage or 

animals or animal products will remain insured for the year, but the expected values should be 

revised from organic expected values to non-organic expected values.

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 or 

documentation the insured has requested, in writing, a certification by the RFOR deadline if 

expected values will be based on organic prices. If the AIP has reason to request a copy of the 

organic plan, the insured must provide a copy of the organic plan. The organic plan may be a 

large document and copies should not be requested unless there are specific concerns.

Copies of the producer’s written organic certificate must be valid at the time a loss claim is 

submitted, and organic prices are used. If the insured does not have a valid certificate at claim 

time, the insured revenue will be recalculated without the organic expected values and any 

expanded operation factor attributed to having a valid certification will be revised accordingly.

If the insured is a newly certified organic grower and is using the process of documenting their 

request for certification, in writing, from a certifying agency for acreage that will have an 

effective date after the RFOR due date but prior to harvest, the insured must have an effective 

certification date prior to harvest of the crop. If the insured’s certification does not have an 

effective date prior to harvest, the expected revenue will be recalculated using the non-organic 

expected values.

142 Post-Production Operations and Market Readiness

The cost of post-production operations, excluding those expenses considered to be market readiness 

operations under the WFRP policy, must be removed from allowable revenue. Added value from postproduction operations is also not insurable under the WFRP policy and must be removed from 

allowable revenue. For Micro Farm, the cost of post-production operations may be included in 

allowable revenue; however, if post-production costs are not included in allowable revenue, they must 

not be included the micro farm expected value and RTC. ***

(1) Post-production operations consist of costs from activities that occur after harvest of the crop 

to get the crop ready for the targeted market. These activities either:

(a) have expenses associated with them such as:

(i) sorting, grading, washing, waxing, labelling, and trimming;
October 2022 FCIC-18160-1 86

142 Post-Production Operations and Market Readiness (Continued)

(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;

(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 2020 tax year. Insured A’s records 

indicated the following revenue: $100,000 from grapes made into wine, $750,000 from 

the sale of wine, $50,000 from the sale of grapes not used for wine, and $300,000 from 

the sale of other insurable fruits and vegetables. The fruits and vegetables and grapes 

not used for wine had post-production costs of $42,000. The allowable revenue for the 

tax year is $408,000 ($100,000 + $50,000 + $300,000 - $42,000).
October 2022 FCIC-18160-1 87

142 Post-Production Operations and Market Readiness (Continued)

Premium rates have been established for raisins, prunes, and cured/dried tobacco. Prunes and raisins 

are separate insurable commodities from plums and grapes and are eligible commodities under WFRP. 

Expenses associated with the curing or drying of tobacco to prepare the tobacco for market and drying 

of prunes and raisins are not subtracted from the market price to determine the local market value.

143 Animals

A. Eligibility

Expected revenue from animals and animal products will be limited to $2 million. If the 

expected revenue exceeds the $2 million limit, the expected revenue will be capped at the $2 

million limit. This limit does not apply to animal and animal products that qualify as 

aquaculture commodities. Refer to Subparagraph 143G for determination of animals and 

animal product expected revenue and capping procedures. Animals and Animal Product 

commodity codes are listed in the AD as animals and animal products.

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.

D. Expected Revenue from Animals and Animal Products

Expected revenue must be adjusted by removing the cost or basis of the market animals onhand at the beginning of the insurance period or purchased for resale from the amount of 

expected revenue on the FOR. The Market Animal and Nursery Inventory Report is used to 

document these numbers for the IFOR.

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
October 2022 FCIC-18160-1 88

143 Animals (Continued)

E. Inventory Adjustments to Revenue (Continued)

(b) end of the insurance period for ending inventory.

A beginning inventory must be completed for each type/category of animal on hand at the 

beginning of the insurance period. An ending inventory must be completed for each 

type/category of animal on hand at the end of the insurance period.

(2) To determine inventory values:

(a) for animals sold by weight, multiply the number of animals in the specific 

type/category by the average pounds per animal in the specific type/category; 

and multiply this by the price per weight unit for the specific type/category; and

(b) for animals sold by the head, multiply the number of animals in the specific 

type/category by the average price per head for the specific type/category.

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 FOR are required. 

Otherwise, the sale of breeding animals or culls that is reported on Form 4797 are considered 

uninsured animals and not included as allowable revenue or RTC.

G. Capping Animal and Animal Product Expected Revenue on Intended and Revised Farm 

Operation Reports

To determine if an insured has more than the allowed amount of animal and animal product 

revenue, excluding animal and animal products that qualify as aquaculture commodities:

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

(2) If the result of (1) is greater than $2 million then:

(a) subtract the $2 million from the result of (1);

(b) divide the result of (2)(a) by the result of (1), rounded to six decimal places;
October 2022 FCIC-18160-1 89

143 Animals (Continued)

G. Capping Animal and Animal Product Expected Revenue on Intended and Revised Farm 

Operation Reports (Continued)

(c) subtract the result of (2)(b) from 1.000; and

(d) multiply the result of (2)(c) by the expected revenue of each animal commodity 

and/or animal product shown on the FOR.

The result will be the capped amount. The total may not equal $2 million due to 

rounding.

Example: Revenue from animals and animal products exceeds the $2,000,000 maximum:

Total Expected Revenue is $3,000,000. Maximum $2,000,000 limit on animals & 

animal products.

Cattle $700,000

Hogs $750,000

Sheep $230,000

Poultry$400,000

Total $2,080,000 ($80,000 over the $2,000,000 limit)

$80,000 ÷ $2,080,000 = 0.038462

1.000 - 0.038462 = 0.961538

Cattle $700,000 × 0.961538 = $673,077

Hogs $750,000 × 0.961538 = $721,154

Sheep $230,000 × 0.961538 = $221,154

Poultry $400,000 × 0.961538 = $384,615

Total $2,000,000

Only the Total Expected Revenue of each commodity on the RFOR will be changed. However, 

all allowable revenue produced from the animals and animal products will count as RTC.
October 2022 FCIC-18160-1 90

144 Nursery/Greenhouse

A. Eligibility

Expected revenue from nursery/greenhouse commodities will be limited to $2 million. If the 

expected revenue exceeds the $2 million limit, the expected revenue will be capped at the $2 

million limit. This limit does not apply to commodities that qualify as aquaculture commodities. 

Refer to Subparagraph 144F for determination of nursery/greenhouse expected revenue and 

capping procedures. This limit only applies to the Nursery/Greenhouse (0073) commodity 

code.

Items placed under this commodity code should be similar to those insured under the FCIC 

nursery plan of insurance. There are other commodity codes for other specific types of plants, 

but these are not considered in the nursery/greenhouse limit.

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 FOR.

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 FOR. The Market Animal 

and Nursery Inventory Report is used to document these numbers for the IFOR.

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.

(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.
October 2022 FCIC-18160-1 91

144 Nursery/Greenhouse (Continued)

D. Inventory Adjustments to Revenue (Continued)

The value of commodities in inventory at the end of the insurance period that were 

purchased for resale during the insurance period must not include the cost, or other 

basis, paid for the commodity.

Example: A plant in ending inventory was purchased for resale. The plant cost $5.00. The 

local market value of the plant at the end of the insurance period is $12.00. The 

$5.00 cost of the plant must be deducted from the value of the plant. Therefore, 

the value of the plant for the ending inventory is $7.00 ($12.00 - $5.00).

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 they are going to hold in inventory for two years. They 

are holding these plants to obtain a higher price for the plants when they have 

matured to larger size. The first year they are in inventory the plants increased 

in value by $2.00 per plant. The increase in value of $400 (200 plants × $2.00) 

must be reported as revenue for WFRP purposes for that insurance period.

F. Capping Nursery/Greenhouse Revenue on Intended and Revised Farm Operation Reports

To determine if an insured has more than the allowed amount of nursery/greenhouse revenue, 

excluding nursery/greenhouse products that qualify as aquaculture commodities:

(1) Total the expected revenue on the IFOR or RFOR for all nursery/greenhouse 

commodities.

(2) If the result of (1) is greater than $2 million then:

(a) subtract the $2 million from the result of (1);

(b) divide the result of (2)(a) by the result of (1), rounded to six decimal places;

(c) subtract the result of (2)(b) from 1.000; and

(d) multiply the result of (2)I by the expected revenue of each nursery/greenhouse 

commodity shown on the RFOR.

The result will be the capped amount. The total may not equal $2 million above due to 

rounding.

Example: Revenue from Nursery/Greenhouse commodities exceeds the $2,000,000 

maximum:
October 2022 FCIC-18160-1 92

144 Nursery/Greenhouse (Continued)

F. Capping Nursery/Greenhouse Revenue on Intended and Revised Farm Operation Reports 

(Continued)

Total Expected Revenue is $3,000,000. Maximum $2,000,000 limit on 

Nursery/Greenhouse commodities.

Plant 1 $700,000

Plant 2 $750,000

Plant 3 $230,000

Plant 4 $400,000

Total $2,080,000 ($80,000 over the $2,000,000 limit)

$80,000 ÷ $2,080,000 = 0.038462

1.000 - 0.038462 = 0.961538

Plant 1 $700,000 × 0.961538 = $673,077

Plant 2 $750,000 × 0.961538 = $721,154

Plant 3 $230,000 × 0.961538 = $221,154

Plant 4 $400,000 × 0.961538 = $384,615

Total $2,000,000

Only the Total Expected Revenue of each commodity on the IFOR and RFOR will be changed. 

However, all allowable revenue produced from the Nursery/Greenhouse commodities will 

count as RTC.

G. Adjustments to Revenue

Increases and decreases in inventory values of nursery commodities will be used to adjust the 

insured’s revenue for the policy year for claims purposes. Refer to Exhibit 7.

145 Commodities with Market Order Reserves

The applicant/insured must provide information for commodities on the FOR that are sold with market 

order reserves. The applicant/insured must provide a detailed listing that shows the separate amounts 

of production from commodities expected to be sold:

(1) to the reserve with the reserve price; and

(2) on the free market with the expected free market price.

The supplemental information provided must support the total production and expected revenue 

reported on the FOR for the commodity.
October 2022 FCIC-18160-1 93

146 Commodities Sold with Co-op Retainages

A. Supplemental Information

The applicant/insured must provide information for insured commodities on the FOR that are 

sold with co-op retainages. The applicant/insured must provide a detailed listing that shows 

the separate amounts of production from such commodities expected to be:

(1) retained, and the expected value; and

(2) sold through normal markets.

Special handling is required to determine RTC and calculating indemnities for producers who 

market commodities through co-operatives that distribute proceeds from the same commodity 

in cash and allocations.

Such co-operatives make cash payments on a crop year basis; however, the payments may be 

distributed over several years.

Allocations are considered non-cash distributions by such co-operatives and are made annually 

on a crop year basis. Allocations include Allocation Credits and Permanent Equity Capitol 

Credits, which comprise the producer’s equity in the co-operative. Such allocations are 

classified as cooperative distribution revenue directly related to the sale of the insured 

commodity.

B. Co-Operative Cash Payments

“Cash advance” payments are distributed to the producer in the crop year of harvest following 

delivery of the insured commodity. Such “cash advance” payments may be made weekly in the 

year harvested. Subsequent cash payments are distributed to the producer in subsequent crop 

years according to the co-operative’s payment schedule for the commodity.

Example: Commodity A production is delivered to the co-operative in the 2018 crop year. 

The co-operative makes cash payments to the producer weekly for the 

remainder of the 2019 crop year then, following the payment schedule for 

commodity A, makes four cash payments in 2020 crop year, four payments in 

2021 crop year, and a final cash payment in 2022 crop year.

C. Allocations

Allocations are distributed annually on the co-operative’s tax-year basis, according to the cooperative’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.
October 2022 FCIC-18160-1 94

146 Commodities Sold with Co-op Retainages (Continued)

C. Allocations (Continued)

Allocation Credits reach full face value at the maturity date specified by the co-operative. 

However, the producer may have the option of redeeming a crop year’s Allocation Credits prior 

to the maturity date. Producers may sell allocation credits at a reduced value to a broker prior 

to reaching full face value. Producers must pay Federal Income Taxes on the full stated value of 

qualified written notices of Allocation Credits in the year they are issued.

Permanent Equity Capitol Credits are a source of the co-operative’s working capital. The cooperative’s policy governs repayment, partial repayments, payback options, and whether 

excess Permanent Equity Capital Credits will be distributed in the form of Allocation Credits or 

refunded as cash. Producers are subject to Federal income tax on the full stated value in the 

tax year received. Cash refunds are not generally subject to Federal income tax since they were 

taxable to the cooperative member when allocated.

Non-Cash allocations are subject to Federal Income Tax when received; therefore, it is not 

necessary to maintain a year-to-year balance for WFRP purposes.

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.
October 2022 FCIC-18160-1 95

146 Commodities Sold with Co-op Retainages (Continued)

E. Required Information on Accounts Receivable (Continued)

Example: Insured A has filed a loss claim for the 2023 policy year, and markets grapes 

through ABC Co-operative, which distributes proceeds from the grapes in cash 

and allocations. In 2023, insured A received $12,115 cash payments and $10,200 

in Allocation Credits and Permanent Equity Capital Credits for the 2022 policy 

year. Insured A reported the total $22,315 to IRS in 2023. 

Insured A’s total projected earnings for grapes were $48,271 in 2022. Insured A 

received $21,773 in “cash advance” payments in 202 and reported the $21,773 

to IRS in 2022. Insured A will receive the remaining $26,498 ($48,271 - $21,773) 

in future cash payments, and future Allocation Credits and Permanent Equity 

Capital Credits from ABS Co-operative. The following is how Insured A’s 

accounts receivable worksheet would be completed.

147 Vertically Integrated Operations

For Micro Farm, vertically integrated operations as defined in the WFRP policy are not eligible for 

coverage.

The integrated relationship between multiple entities can affect the value, cost, and price of 

commodities, goods, and services used/determined by an integrated operation.

The expected value that represents the local market value/price, determined according to WFRP policy 

expected value guidelines, must be used for purposes of allowable revenue, expected revenue, and 

post-production operation costs, regardless of the actual value and price used by a vertically integrated 

operation. Refer to the CIH for acceptable record requirements for vertically integrated entities. The 

Market Certification is not applicable to WFRP and Micro Farm. ***

Example: Insured A is a vertically integrated operation that controls all stages of production of a 

commodity including, but not limited to, purchasing of seed, planting, fertilizing, 

harvesting, removal from the field, purchasing packaging materials, washing, grading, 

packaging, processing, and selling. Multiple entities handle different stages of the 

production of the commodity, but all are part of the same vertically integrated 

operation. The local market value/price determined by the expected value guidelines 

must be used for determining allowable revenue, expected revenue, and postproduction operation costs for insured A. ***
October 2022 FCIC-18160-1 96

148 Commodities Purchased for Resale

(1) Eligibility requirements at SCD limit expected revenue derived from commodities purchased for 

resale to 50 percent of the total expected revenue. However, changes may occur during the 

policy year that result in the farm being over the limit when the RFOR is submitted.

(2) If the expected revenue from commodities purchased for resale reported on the RFOR is 

greater than 50 percent of the total expected revenue, the expected revenue for commodities 

purchased for resale will be limited to no more than the amount of expected revenue from 

commodities the insured will produce on their farm operation (including expected revenue 

from commodities lost due to insurable causes). All revenue earned will be considered RTC. To 

determine if an insured has more than the allowed amount of revenue from commodities 

purchased from resale:

(a) Total the expected revenue on the RFOR for commodities purchased for resale. 

(b) Total the expected revenue from commodities produced on the farm operation 

(including expected revenue from commodities lost due to insured causes of loss).

(c) If the result of (a) is greater than the result of (b) then:

(i) subtract the result of (b) from the result of (a);

(ii) divide the result of (i) by the result of (a), rounded to six decimal places;

(iii) subtract the result of (ii) from 1.000; and

(iv) multiply the result of (iii) by the expected revenue of each commodity purchased 

for resale shown on the RFOR.

The result will be the capped amount. The total may not necessarily equal the result of 

(b) due to rounding.

Example: Revenue from commodities purchased for resale exceeds amount of 

expected revenue from commodities produced on the farm operation:

Expected revenue from commodities purchased for resale is $100,000.

Corn (PFR) $50,000

Wheat (PFR) $25,000

Hay (PFR) $25,000

Total $100,000

Expected revenue from commodities produced on the farm operation is 

$85,000.
October 2022 FCIC-18160-1 97

148 Commodities Purchased for Resale (Continued)

Soybeans $85,000

$100,000 - $85,000 = $15,000

$15,000 / $100,000 = 0.150000

1.000 - 0.150000 = 0.850000

Corn (PFR) $50,000 × 0.850000 = $42,500

Wheat (PFR) $25,000 × 0.850000 = $21,250

Hay (PFR) $25,000 × 0.850000 = $21,250

Total $85,000

Only the Total Expected Revenue of each commodity on the RFOR will be changed. However, 

all allowable revenue produced from the commodities purchased for resale will count as RTC.

149 Industrial Hemp

(1) Industrial hemp is an insurable commodity under WFRP only when planted, grown, and 

harvested in accordance with the regulations governing industrial hemp production on the land 

the industrial hemp is produced and in accordance with a valid marketing contract.

(a) The insured must comply with all applicable Federal regulations and any applicable state 

or tribal laws. To produce industrial hemp, the insured must be licensed or authorized 

under a State, Tribal, or USDA hemp program. Hemp regulations can be found at 

www.ams.usda.gov/rules-regulations/hemp; 

Note: The maximum acceptable hemp THC level will be the lesser of: 1) 0.3 percent, 

allowing for the measurement of uncertainty provided by the testing laboratory; 

or 2) the acceptable level of the applicable governing authority (State or Tribe) in 

which the insured crop is grown, allowing for the measurement of uncertainty 

provided by the testing laboratory. If the test results provided by the testing 

laboratory do not include a measure of uncertainty, the measurement of 

uncertainty will be considered zero percent (0.000 percent). Refer to Paragraph

126. 

(b) If the insured’s farm operation is mostly located in one state but the insured produces 

industrial hemp in another state, the insured must comply with the regulations of the 

state where the land on which the industrial hemp is located;

(c) In addition to the requirements in Exhibit 18, the entity issuing the marketing contract 

must:

(i) comply with all requirements of the regulatory plan in place in the location the 

industrial hemp will be processed; and
October 2022 FCIC-18160-1 98

149 Industrial Hemp (Continued)

(ii) must possess or have contractual access to facilities with enough equipment and 

capacity to process the amount industrial hemp in the marketing contract.

(d) Industrial hemp grown without a valid marketing contract is not insurable, even if the 

insured’s farm operation has a marketing contract for a portion of the industrial hemp 

planted acreage. Any revenue produced from uninsurable hemp acreage will be 

included as RTC.

Example: The insured has a marketing contract for 50 acres of industrial hemp 

valued at $50,000. However, the producer produces 100 acres of 

industrial hemp and sells all 100 acres for $100,000. At claim time, 

$100,000 will be included as RTC.

(2) If the industrial hemp is produced in a state or tribal territory that has assumed regulatory 

responsibility for industrial hemp production, the insured must:

(a) comply with all requirements and provisions of the regulatory plan of that state or tribe; 

and

(b) possess any license required by that plan.

(3) Industrial hemp must be produced using seed or plant cuttings adapted to the intended use 

and planting patterns appropriate to the intended use.

Example: Industrial hemp harvested primarily for fiber must be produced using a seed or 

plant cutting adapted for fiber production and the planting pattern used must be 

intended to maximize fiber production.

(4) Industrial hemp that is unsalable or destroyed due to a THC level exceeding the maximum 

acceptable limit as stated in Subparagraph 149(a) will be considered damaged due to an 

uninsured COL, regardless of the determination of what may have caused the increased THC 

level. The insured must notify the AIP prior to destroying the industrial hemp. Refer to 

Paragraph 94. 

Note: At claim time, the RTC for such acreage will be not less than the expected 

revenue reported on the RFOR. Refer to Paragraph 106. 

150 Combined Direct Marketing Commodities

The combined direct marketing commodity procedures are not applicable to Micro Farm.

The combined direct marketing commodity code, found in the AD, is used for farm operations that 

include revenue from commodities sold through direct marketing and submit direct marketing sales 

records to the AIP as required in Paragraph 51. 

(1) For any commodity sold through direct marketing and another marketing channel to qualify as 

a direct marketing commodity, it must be listed on separate lines of the FOR.
October 2022 FCIC-18160-1 99

150 Combined Direct Marketing Commodities (Continued)

(2) The insured must report at least two commodities sold through direct marketing under the 

combined direct marketing commodity.

(3) Commodities reported as combined direct marketing are not required to have separate 

expected values and yields. 

(4) Determining the expected value:

(a) The insured must provide direct marketing sales records for the last three years 

preceding the policy year, including the lag year, if requested by the AIP, that represents 

a complete marketing record of all commodities on the farm operation sold through 

direct marketing and reported as combined direct marketing.

Revenue from sources other than insurable commodities (e.g., bottled water, souvenir 

sales, jams, etc., sold through a farm stand) and post-production expenses must be 

removed when determining expected revenue for combined direct marketing.

(b) The insured must certify their total number of planted acres for the last three years 

preceding the policy year, including the lag year, of all commodities sold through direct 

marketing and reported as combined direct marketing. The insured must submit 

verifiable records, if requested by the AIP, to support the certified acres.

(c) To calculate the expected value per acre:

(i) determine the three-year average allowable revenue using the records from (a);

(ii) determine the three-year average number of acres using the records from (b); 

and

(iii) divide the result of (i) by the result of (ii).

(d) The AIP may adjust the expected value per acre if market conditions, commodity 

mixtures, or structures used to produce commodities on the insured’s farm operation 

have changed that could result in a lower expected revenue than the three-year 

average.

(5) For the purposes of commodity counts in Paragraph 41, the combined direct marketing 

commodity code will equal two commodities regardless of the number of commodities 

reported as combined direct marketing.

151-160 (Reserved)
October 2022 FCIC-18160-1 100

PART 7: MICRO FARM

161 Micro Farm

The micro farm commodity code, found in the AD, is used for farm operations that are eligible and 

have elected coverage under the Micro Farm Pilot Provisions. All agriculture commodities on the 

insured’s farm operation are listed under the micro farm commodity code.

(1) All commodities produced on the farm operation must be listed on the FOR using the micro 

farm commodity code.

(2) A commodity count is not calculated and:

(a) the commodity count will equal three;

(b) the insured will qualify for all coverage levels; and

(c) the diversification discount is 0.523 for the purpose of the premium calculation.

(3) Commodities reported on the FOR under the micro farm commodity code are not required to 

have separate expected values and yields. 

(4) Determining the expected value:

(a) The insured must provide consolidated sales records for the last three years preceding 

the policy year, when requested by the AIP, that represents a complete marketing 

record of all commodities on the farm operation reported as micro farm commodities.

Revenue generated from post-production operations and value added to commodities 

may be included in allowable revenue. If this revenue is used when determining the 

allowable revenue for the whole-farm historical average revenue or expected revenue, 

it must be included in RTC.

Revenue from sources other than insurable commodities (e.g., bottled water, souvenir 

sales, etc., sold through a farm stand) and the cost of commodities purchased for resale

must be removed when determining expected revenue for micro farm commodities.

(b) The insured must certify their total number of planted acres for the last three years 

preceding the policy year, of all commodities reported as micro farm commodities. The 

insured must submit verifiable records, if requested by the AIP, to support the certified 

acres.

(c) To calculate the expected value per acre:

(i) determine the three-year average allowable revenue using the records from (a);

(ii) determine the three-year average number of acres using the records from (b); 

and

(iii) divide the result of (i) by the result of (ii).
October 2022 FCIC-18160-1 101

161 Micro Farm (Continued)

(d) The AIP may adjust the expected value per acre if market conditions, commodity 

mixtures, or structures used to produce commodities on the insured’s farm operation 

have changed that could result in a lower expected revenue than the three-year 

average.
October 2022 FCIC-18160-1 102

EXHIBITS

Exhibit 1 Acronyms and Abbreviations

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

ARH Actual Revenue History

BFR Beginning Farmer or Rancher

CAT Catastrophic Risk Protection

CCD Contract Change Date

CFR Code of Federal Regulations

CIH Crop Insurance Handbook

ERS Economic Research Service

FCIC Federal Crop Insurance Corporation

FOR Farm Operation Report

FFOR Final Farm Operation Report

FSA Farm Service Agency

GFP Good Farming Practice

GSH General Standards Handbook

IFOR Intended Farm Operation Report

IRS Internal Revenue Service

NAP Noninsured Disaster Assistance Program

NASS National Agricultural Statistics Service

OPI Office of Primary Interest

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

RFOR Revised Farm Operation Report

RMA Risk Management Agency

RRD Revised Reporting Date

RTC Revenue-to-Count

SBI Substantial Beneficial Interest

SCD Sales Closing Date

SP Special Provisions of Insurance

SSN Social Security Number

THC Tetrahydrocannabinol

U.S.C. United States Code

USDA United States Department of Agriculture

VFR Veteran Farmer or Rancher

WFHR Whole-Farm History Report

WFRP Whole-Farm Revenue Protection
October 2022 FCIC-18160-1 103

Exhibit 2 Definitions

Abandon: The failure to continue activities necessary to produce an amount of allowable revenue equal to or 

greater than the expected revenue of a commodity, performing activities so insignificant as to provide no 

benefit to a commodity, or failure to harvest or market a commodity in a timely manner. 

Accrual accounting method: A system of record keeping in which revenue earned and expenses incurred for a 

specified time period are recorded regardless of whether or not the revenue was received, or the expenses 

were paid during the specified time period.

Actuarial Documents: The information for the policy year that is available for public inspection in the 

insured’s agent’s office and published on RMA’s web site that includes available crop insurance policies, 

coverage levels, information needed to determine amounts of insurance, premium rates, premium adjustment 

percentages, program dates, and other related information regarding the insurance coverage.

Agricultural experts: Persons who are employed by the Cooperative Extension System or the agricultural 

departments of universities, or other persons approved by FCIC, whose research or occupation is related to 

the specific commodity for which such expertise is sought.

***

Allowable revenue: Farm revenue, specified by the WFRP policy and including applicable adjustments, from 

the production of commodities produced by the applicant’s/insured’s farm operation, purchased for resale, or 

purchased for further growth and development by the applicant’s/insured’s farm operation, that the IRS 

requires the applicant/insured to report on farm tax records.

Animals: Living organisms other than plants or fungi that are produced or raised in farm operations, including, 

but not limited to, cattle, horses, swine, sheep, goats, poultry, fish, bees, and fur bearing animals. For the 

purposes of WFRP, animals must be propagated or reared in a controlled environment.

Animal products: Any commodity derived from a live animal, excluding commodities that are also animals or 

parts of animals. Examples include milk, eggs, honey, and wool but not live calves, processed broilers, package 

bees, or mutton.

Application: The form required to be completed by the applicant/insured and accepted by the AIP before 

insurance coverage will begin.

*** 

Approved revenue: The amount of allowable revenue that the applicant’s/insured’s farm operation is 

expected to earn or will obtain from the sale of commodities the applicant/insured produces, or purchases for 

resale, in the insurance period, as approved by the AIP.
October 2022 FCIC-18160-1 104

Exhibit 2 Definitions (Continued)

Aquaculture commodity: Aquatic animals or plants grown in a controlled aquatic environment; including, but 

not limited to fish, shellfish, and seaweeds.

Assignment of indemnity: A transfer of policy rights, whereby the applicant/insured assigns their right to an 

indemnity payment, for the policy year only, to creditors or other persons to whom they have a financial debt 

or other monetary obligation.

***

Average allowable revenue: The average of the allowable revenue for the applicant’s/insured’s whole-farm 

history period after any applicable adjustments.

***

Beginning accounts receivable: Allowable revenue earned prior to the insurance period, but that has not 

been received at the beginning of the insurance period and supported by verifiable records. This amount 

includes the value of beginning inventory that is under a marketing contract with a buyer to be purchased at a 

specified price.

Beginning farmer or rancher: An individual who has not actively operated and managed a farm or ranch in 

any state, with an insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or 

sharecropper for more than ten policy years, as determined in accordance with FCIC procedures. Any policy 

year’s insurable interest may, at the insured’s election, be excluded if earned while under the age of 18, while 

in full-time military service of the United States, or while in post-secondary education, in accordance with FCIC 

procedures. A person other than an individual may be eligible for beginning farmer or rancher benefits if all of 

the substantial beneficial interest holders qualify as a beginning farmer or rancher.

Beginning inventory: The commodities the applicant/insured produced or owned prior to the insurance 

period, but that have not been sold or otherwise disposed of at the beginning of the insurance period and 

supported by verifiable records. Any commodity that is under a marketing contract with a buyer to be 

purchased during the previous insurance period at a price that will not be determined until the current 

insurance period or subsequent years will be considered as beginning inventory.

Bypassed acreage: Land on which a commodity, grown under a processor contract, is ready for harvest but 

the buyer elects not to accept the commodity and it is not harvested.

Calendar year filer: An insured that files taxes based on the 12 consecutive months corresponding to January 

1 through December 31.

Cancellation date: The date specified in the AD for the tax filer type on which coverage will automatically 

renew unless canceled in writing by either the insured or the AIP or terminated in accordance with WFRP 

policy.
October 2022 FCIC-18160-1 105

Exhibit 2 Definitions (Continued)

Carryover insured: An insured that was covered under WFRP in the policy year immediately prior to the 

current policy year without respect to insurance provider. For the purposes of Micro Farm, coverage for the 

previous policy year must have included Micro Farm coverage to qualify as a carryover insured for the 

purposes of determining the insured’s approved revenue. 

Cash accounting method: A system of record keeping where farm business revenue and expenses are 

recorded during the time period they are actually received or paid.

Catastrophic Risk Protection: The minimum level of coverage offered by FCIC.

Certificate: With respect to organic crops, a written document that identifies the name of the person 

certified, effective date of certification, certificate number, types of products certified, and name and address 

of the certifying agency.

Certification: With respect to organic crops, a determination made by the certifying agency that the 

production or handling operation is in compliance with the certifying agency’s certification standards.

Certified organic acreage: Acreage in the certified organic farming operation that has been certified by a 

certifying agent as conforming to organic standards in accordance with 7 CFR part 205.

Certifying agent: A private or governmental entity accredited by the USDA Secretary of Agriculture for the 

purpose of certifying a production, processing or handling operation as organic.

Claim for indemnity: A claim for a loss made on the AIP’s form that contains the information necessary to pay 

the indemnity, as specified in the WFRP policy.

Combined direct marketing: Two or more commodities sold through direct marketing and reported as a 

single commodity code on the insured’s FOR.

Commodities purchased for resale: Commodities not produced by the farm operation, but which are 

purchased to be added by the farm operation. This does not include commodities purchased for further 

growth, development or maturity for later sale, or commodities purchased to replace production of the farm 

operation lost due to insurable causes. 

Commodity: Any agricultural product established or produced by the farm operation, except timber, forest, 

and forest products, animals for sport, show, or pets.

Commodity code: A code designating an agricultural product that qualifies as a commodity for the commodity 

count calculations. A commodity code may have more than one associated rate code. For the purposes of 

Micro Farm, all agriculture commodities on the insured’s farm operation are designated under a single code.

Commodity count: The number of commodities on the farm operation as determined in section 19I of WFRP 

policy.

Consent: Approval in writing by the AIP allowing the insured to take a specific action.
October 2022 FCIC-18160-1 106

Exhibit 2 Definitions (Continued)

Consolidated sales records: Contemporaneous records that document the sale of commodities by the 

insured’s farm operation. The insured must provide the contemporaneous records, when requested by the 

AIP, used to determine the allowable revenue on their Schedule F tax forms.

Contemporaneous records: Written records developed at the time the event occurred, recording information 

such as planting of a commodity, harvested production, sale of a commodity, daily receipts, etc.

Contract change date: The date by which changes to the policy, if any, will be made available.

Contract grower: A person retained under contract to manage the growth of a commodity owned by another 

person.

Controlled Substance: Any substance whose manufacture, distribution, or use is federally regulated under the 

Controlled Substance Act.

Cooperative Extension System: A nationwide network consisting of a state office located at each state’s landgrant university, and local or regional offices. These offices are staffed by one or more agricultural experts, 

who work in cooperation with the National institute of Food and Agriculture, and who provide information to 

agricultural producers and others.

County: Any county, parish, political subdivision of a state, or other area specified in the AD.

Damage: Injury, deterioration, or loss of production of an insured commodity due to insured or uninsured 

causes.

Days: Calendar days, unless otherwise specified.

Deductible: The result of the producer’s approved revenue minus the producer’s insured revenue. The 

deductible represents the amount of the producer’s approved revenue that is not insured by the WFRP policy.

Delinquent debt: The same meaning as the term defined in 7 CFR part 400, subpart U.

Direct marketing: Marketing commodities directly to consumers without the involvement of a third party 

(e.g., farmer’s markets, u-pick, roadside stands, internet sales, etc.).

Direct marketing sales records: Contemporaneous records that document the sale of commodities through 

direct marketing. If the insured sells a commodity through direct marketing, they must provide the 

contemporaneous records used to determine allowable revenue on the Schedule F farm tax form.

Disinterested third-party: A person that does not have any familial relationship (parents, brothers, sisters, 

children, spouse, grandchildren, aunts, uncles, nieces, nephews, first cousins, or grandparents, related by 

blood, adoption or marriage, are considered to have a familial relationship) with the insured and who will not 

benefit financially from the sale of the insured commodity.

Disregarded entity: A single-member tax entity that does not elect to be treated as a corporation for income 

tax purposes and files taxes under another entity name.
October 2022 FCIC-18160-1 107

Exhibit 2 Definitions (Continued)

Diversification discount: The discount to the applicant’s/insured’s farm premium rate their farm qualifies for 

based on their commodity count, as determined in accordance with section 19I of the WFRP Policy.

Early fiscal year filer: An insured, other than a calendar year filer, that files taxes with a fiscal year that begins 

prior to September 1.

End of insurance period, date of: The date upon which insurance coverage ceases for the policy year.

***

Ending accounts receivable: Allowable revenue earned during the insurance period, but that has not been 

received at the end of the insurance period and supported by verifiable records. This amount includes the 

value of ending inventory that is under a marketing contract with a buyer to be purchased at a specified price.

Ending inventory: The commodities the insured produced during the insurance period, but that have not 

been sold or otherwise disposed of at the end of the insurance period and supported by verifiable records and 

reported on the Inventory Report as ending inventory. Any commodity that is under a marketing contract 

with a buyer to be purchased during the insurance period at a price that will not be determined until the 

subsequent policy years will be considered as ending inventory.

Expanded operation: Adjusted revenue is the average allowable revenue adjusted to reflect physical 

expansion of the farm operation.

Expanding operation factor: A factor that is used to calculate the expanded operation adjusted revenue for 

farm operations that are physically expanding.

Expected revenue: The amount of revenue the applicant/insured expects to receive from a commodity as 

stated on the FOR.

Expected value: The price the insured can reasonably expect to receive for a commodity in accordance with 

the expected value guidelines in the WFRP policy, less the cost of all post-production expenses.

Expected Yield: The yield the insured reasonably expects their insured commodity to produce under normal 

growing conditions in the insurance period, in accordance with the expected yield guidelines.

***

Farm operation: All farming activities for which revenue and expenses are reported to the IRS under a single 

taxpayer identification number will be considered a single a farm operation for WFRP purposes.

Farm Operation Report: The form on which the applicant/insured provides all required information regarding 

the commodities they expect to earn revenue from during the insurance period. The FOR consists of three 

parts; the IFOR, RFOR, and FOR, with each part due at the time specified in the WFRP Policy.

Farm premium rate: The premium rate for coverage under this policy calculated based on the commodities 

on the insured’s farm operation.

Farm tax forms: IRS income tax forms (such as Form 1040, Form 1120, Form 1041, Form 1065, Form 1102S, 

and Form 4835) used to report farm revenue and expenses for a signed and filed Federal tax return, 

specifically including Schedule F (from 1040) but also other forms used to report farm revenue and used under 

this policy to develop a Substitute Schedule F, if needed.
October 2022 FCIC-18160-1 108

Exhibit 2 Definitions (Continued)

Fiscal year: A period of 12 consecutive months used for accounting and tax purposes and ending on the last 

day of the twelfth month provided the twelfth month is not December (a twelve-month period ending the last 

day of December is a calendar year).

Generally recognized: When agricultural experts or organic agricultural experts, as applicable, are aware of 

the production method or practice and there is no genuine dispute regarding whether the production method 

or practice allows the commodity to make normal progress toward maturity.

Good farming practices: The production methods utilized to produce the insured commodities and allow 

them to make normal progress toward maturity resulting in at least the approved revenue, which are: (1) For 

conventional or sustainable farming practices, those generally recognized by agricultural experts for the area; 

or (2) for organic farming practices, those generally recognized by organic agricultural experts for the area or 

contained in the organic plan. The AIP or the insured may request the AIP to contact FCIC to determine 

whether or not production methods will be considered “good farming practices.”

Household: A domestic establishment including individuals with a familial relationship and others who live on 

the same property.

Indexed Revenue: The allowable revenue of a tax year adjusted to reflect growth during the whole-farm 

history period.

Indexed average revenue: The average for all years in the insured’s whole-farm history period after any 

adjustment to reflect revenue growth during the whole-farm history period.

Industrial Hemp: The plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all 

derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a 

delta-THC concentration of not more than 0.3 percent on a dry weight basis.

Insurable interest: The percentage of the commodity that is at financial risk of loss.

Insurance period: The 12-month period corresponding to the producer’s tax year beginning in the calendar 

year in which the SCD occurs.

Insured: The named person as shown on the accepted application. This term does not extend to any other 

person having a share or interest in the crop, such as a partnership, landlord, or any other person, unless 

specifically indicated on the accepted application.

Insured commodity: A commodity the insured will produce or purchase for resale during the insurance 

period.

Insured revenue: The total amount of insurance provided to the insured.

Intended commodity: A commodity the insured reported on their IFOR.

Lag year: The tax year immediately preceding the insurance period.

Late fiscal year filer: An insured with a fiscal year that begins September 1 or later.
October 2022 FCIC-18160-1 109

Exhibit 2 Definitions (Continued)

Local market price: The average price offered by buyers of the commodity in the area where the 

applicant/insured normally sells that commodity.

Market readiness operations: The on-farm activities that are the minimum required to remove the 

commodity from the field and make the commodity market ready, such as washing, packing, etc. Market 

readiness activities are not considered to be post-production operations and do not have to be excluded from 

allowable revenue in accordance with section 45. Since it is the minimum required to remove the commodity 

from the field, the activity must occur on or in close proximity to the field where the commodity is produced. 

Market readiness operations do not include any activities that occur off-farm or on-farm in in-field that 

increases the value of the crop, such as canning, freezing, and processing activities that alter the physical 

nature of insurable commodities including, but not limited to, slicing apples, putting commodities into gift 

baskets, jams, jellies, wine, or cider, etc.

Marketing contract: A written agreement between the applicant/insured and a buyer for the purchase of a 

commodity the applicant/insured will produce on their farm operation at a specified price.

Native sod: Acreage that has no record of being tilled (determined in accordance with information collected 

and maintained by an agency of the USDA or other verifiable records that applicant/insured provides and are 

acceptable to the AIP) for the production of an annual crop on or before February 7, 2014, and on which the 

plant cover is composed principally of native grasses, grass-like plants, forbs, or shrubs suitable for grazing and 

browsing.

Negligence: The failure to use such care as a reasonably prudent and careful person experienced in the 

production of commodities would use under similar circumstances.

Net value: The value of a commodity at the beginning of the insurance period minus the cost of the 

commodity.

Noninsured Crop Disaster Assistance Program: A program administered by FSA which provides coverage to 

producers of crops that do not have a permanent crop insurance program available or, if such coverage is 

available, it is only available under a policy that provides coverage for specific intervals based on weather 

indexes or WFRP.

Notice of loss: A written notice the insured is required to file in the agent’s office whenever they initially 

discover that any commodity insured under WFRP has been damaged by a cause of loss that could result in a 

loss of production or reduction in value or that allowable revenue for the policy year may be less than insured 

revenue.

Nursery and greenhouse commodities: Plants which are propagated or grown to be sold as plants, not 

including commodities produced by plants (e.g., tomato plants, but not tomatoes). For the purposes of this 

policy, plants for nursery and greenhouse commodities must be propagated or grown in a controlled 

environment.

Offset: The act of deducting one amount from another amount.
October 2022 FCIC-18160-1 110

Exhibit 2 Definitions (Continued)

Organic agricultural experts: Persons who are employed by the following organizations: Appropriate 

Technology Transfer for Rural Areas, Sustainable Agriculture Research and Education or the Cooperative 

Extension System, the agricultural departments of universities, or other persons approved by FCIC, whose 

research or occupation is related to the specific organic crop or practice for which such expertise is sought.

Organic farming practice: A system of plant or animal production practices used to produce the commodity 

that is approved by a certifying agent in accordance with 7 CFR part 205.

Organic system plan: A written plan, in accordance with the National Organic Program published in 7 CFR part 

205 that describes the organic farming practices to be carried out on the farm operation.

Organic standards: Standards in accordance with the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et 

seq.) and 7 CFR part 205.

Originating entity: An entity that actually physically produces the commodity.

Pass-through entity: An entity that reports to the IRS but does not pay taxes on portions of the revenue, 

instead passing it to each individual owner who then pays income tax on their portion of the revenue from the 

business.

Perennial commodity: A commodity produced on a plant, bush, tree, or vine that has a lifespan of more than 

one year, as identified in the AD.

Person: An individual, partnership, association, corporation, estate, trust, or other legal entity, and wherever 

applicable, a State or a political subdivision or agency of a State. “Person” does not include the United States 

Government or any agency thereof.

Policy year: The calendar year that begins after the CCD (for late fiscal year filers the policy year will differ 

from the tax year insured under the WFRP policy).

Post-production operations: Any operations not included in the definition of market readiness operations, 

performed after producing and harvesting an insured commodity to prepare it for sale. These include, but are 

not limited to, any activity occurring on-farm or off-farm to prepare the commodity for sale or any activity that 

increases the value of the crop, such as canning, freezing, and processing activities that alter the physical 

nature of insurable commodities such as slicing apples, putting commodities into gift baskets, making jams, 

jellies, wine, or cider, or costs for cold and controlled atmosphere storage.

***

Produced: An insured commodity will be considered produced when it has matured to the extent that it is 

generally saleable at established markets, regardless of whether or not it is actually harvested by the end of 

the insurance period.

Production capacity: Physical land or structures used for the production of commodities on the insured’s 

farm operation.
October 2022 FCIC-18160-1 111

Exhibit 2 Definitions (Continued)

Prohibited substance: Any biological, chemical, or other agent that is prohibited by Federal statute from use 

or is not included in the organic standards for use on any certified organic, transitional or buffer zone acreage. 

Lists of such substances are contained at 7 CFR part 205.

Qualifying revenue threshold: The minimum amount of revenue a commodity must be expected to generate 

to qualify as a commodity for the purpose of the insured’s commodity count.

Rate code: A code designating a specific commodity, type, and practice for premium rate calculations. Each 

rate code has an associated premium rate specified in the actuarial documents.

Replanted commodity: The same annual commodity replanted on the same acreage as the first insured 

commodity for harvest in the same insurance period.

Replanting: Performing the cultural practices necessary to prepare the land and then replacing the seed or 

plants of the damaged or destroyed commodity on the same acreage.

Revenue trend factor: A factor that is used to measure the year-to-year growth in revenue of the insured’s 

farm operation.

Sales closing date: The date contained in the AD for the tax filer type by which an application must be filed 

and the last date by which the insured may change coverage for a policy year.

Schedule F: A tax form commonly used to file Federal taxes for a farm.

Short tax year: A period of less than twelve consecutive months for which a tax entity may be required to file 

a tax return due to changing from a calendar year to fiscal year or vice versa or from changing the dates of a 

fiscal year.

Simple average allowable revenue: The simple average of the allowable revenue for all years in the 

applicant/insured’s whole-farm history period.

Simple average indexed revenue: The simple average of the indexed revenue for all years in the whole-farm 

history period.

Special Provisions: The part of the policy that contains specific provisions of insurance that may vary by 

geographic area.
October 2022 FCIC-18160-1 112

Exhibit 2 Definitions (Continued)

Substantial beneficial interest: An interest held by any person of at least 10 percent in you (e.g., there are 

two partnerships that each have a 50 percent interest in you and each partnership is made up of two 

individuals, each with a 50 percent share in the partnership. In this case, each individual would be considered 

to have a 25 percent interest in you, and both the partnerships and the individuals would have a substantial 

beneficial interest in you. The spouses of the individuals would not be considered to have a substantial 

beneficial interest unless the spouse was one of the individuals that made up the partnership. However, if 

each partnership is made up of six individuals with equal interests, then each would only have an 8.33 percent 

interest in you and although the partnership would still have a substantial beneficial interest in you, the 

individuals would not). The spouse of any individual applicant or individual insured will be presumed to have a 

substantial beneficial interest in the applicant or insured unless the spouses can prove they are legally 

separated or otherwise legally separate under the applicable state dissolution of marriage laws. Any child of 

an individual applicant or individual insured will not be considered to have a substantial beneficial interest in 

the applicant or insured unless the child has a separate legal interest in such person.

Substitute Schedule F: A form used in place of a Schedule F form if the applicant/insured files farm tax forms 

for their farm operation that do not include a Federal Schedule F tax form.

Summary of coverage: The AIP’s statement to the insured, based upon the FOR that provides specific 

information about the insured’s policy including the amount of insurance coverage.

Tax entity: Any person that has a tax reporting requirement.

Tax filer type: The type of tax filer for purposes of the WFRP policy, determined according to the producer’s 

tax year. The tax filer types are calendar year filer, early fiscal year filer, and late fiscal year filer.

Tax year: The annual accounting period for the farm operation defined by the 12-month period used for tax 

purposes. The tax years are (1) a calendar year or (2) a fiscal year. For the purposes of the WFRP policy, tax 

years are designated by the calendar year in which the 12-month period begins.

Total expected revenue: The total amount of expected revenue the applicant/insured expects to receive from 

all commodities on their farm operation in the insurance period, as stated on the FOR, including expected 

revenue from commodities lost to a covered cause of loss.

Transitional acreage: Acreage on which organic farming practices are being followed but the acreage does 

not yet qualify to be designated as organic acreage.

Verifiable records: Contemporaneous records provided from a disinterested third party (such as records from 

a warehouse, elevator, processor, packer, broker, input vendor, etc.), or by measurement of farm stored 

commodities. Except for those commodities sold through direct marketing, if the insured processes or packs 

their insured commodities, they must provide final settlement sheets showing disposition of the insured 

commodities and marketing records reconcilable with revenue reported for tax purposes for their farm 

operation.

Vertically integrated operation: A person that has a substantial beneficial interest in multiple entities that 

may buy and sell commodities from each other or move commodities from one entity to the other to conduct 

post-production operations on the commodities.
October 2022 FCIC-18160-1 113

Exhibit 2 Definitions (Continued)

Veteran farmer or rancher: An individual who has served active duty in the United States Army, Navy, Marine 

Corps, Air Force, Space Force, and Coast Guard, including the reserve components, was discharged, or 

released under conditions other than dishonorable, and:

(1) has not operated a farm or ranch;

(2) has operated a farm or ranch for not more than 5 years; or

(3) first obtained status as a veteran during the most recent 5-year period.

(4) a person, other than an individual, may be eligible for veteran farmer or rancher benefits if all 

substantial beneficial interest holders qualify as a veteran farmer or rancher, except when there 

is only a married couple. Then a veteran and non-veteran spouse are considered a veteran 

farmer or rancher.

Void: The policy is considered not to have existed for a policy year.

Whole-farm historic average revenue: The historic, average allowable revenue generated from the farm 

operation, adjusted according to the policy, and stated on the WFHR.

Whole-farm history period: The five consecutive tax years prior to the lag year. For the purpose of Micro 

Farm, the whole-farm history period means the series of consecutive tax years preceding the policy year, with 

a minimum of three years and a maximum of five years (including the lag year).

Whole-Farm History Report: The report that documents the applicant’s/insured’s farm operation’s allowable 

revenue for each tax year used to determine their whole-farm historic average revenue, and other 

information necessary to determine the farm operation’s whole-farm historic average revenues. ***
October 2022 FCIC-18160-1 114

Exhibit 3 Form Standards

This exhibit provides form standards that are in addition to or in lieu of the standards and elements provided 

in the DSSH and for forms that are unique to WFRP, including completion procedures.

Subparagraphs A through F refer to forms provided in DSSH. All other subparagraphs refer to forms unique to 

WFRP.

A. Conditions of Acceptance Statement

(1) The following sentences in the Conditions of Acceptance Statement must be removed.

“Unless rejected or the SCD has passed at the time you signed this application, insurance will be 

in effect for the crop(s) and policy years specified and will continue for each succeeding policy 

year, unless otherwise specified in the policy, until canceled, terminated or voided. The 

insurance contract, which includes the accepted application, is defined in the regulation 

published at 7 CFR chapter IV.”

(2) The following sentence must be added to the Conditions of Acceptance Statement.

“Unless rejected or the SCD has passed at the time you signed this application, insurance will be 

in effect for the policy year specified and will continue for each succeeding policy year, unless 

otherwise specified in the policy, until canceled, terminated or voided.”

B. Anti-Rebating Certification

(1) Substitute “Policy Year” as a substantive element in place of “Crop Year.”

(2) Substitute “I certify, for the policy year indicated,” in place of “I certify, for the crop year 

indicated,” at the beginning of the applicant/insured and agent substantive anti-rebating 

statements.

C. Application, Policy Transfer/Application, and Policy Change

(1) Substitute “Effective Policy Year” as a substantive element in place of “Effective Crop Year.”

(2) The following substantive elements, as provided by DSSH, are not required. If they are 

included, complete each by entering “N/A.”

(a) “Name of Crop”

Exception: For the Micro Farm Provisions, include and enter “Micro Farm.”

(b) “Options, Elections, or Endorsements”

(c) “Percentage of Price Election, Projected Price or Amount of Insurance”

(d) “Added County Election”

(e) “Designated County”

(f) “Landlord/Tenant insuring other’s share”
October 2022 FCIC-18160-1 115

Exhibit 3 Form Standards (Continued)

C. Application, Policy Transfer/Application, and Policy Change (Continued)

(3) The following statement must be within a box above the insured’s signature line and date.

“I understand that:

(a) my approved revenue for the five years in the whole-farm history period and my 

expected revenue for the current year may be adjusted as required under the terms of 

the WFRP policy, and that such adjustments may affect the amount of insured revenue 

and any indemnity; ***

(b) no insurance will be provided unless this application and all required forms are 

completed and filed on or before the SCD for the policy year in which I am requesting 

WFRP coverage; and

(c) although insurance under this application is continuous from year to year, policy terms, 

premium rates, and the amount of revenue insured may change from year to year.”

The following table provides the information to enter for substantive elements that are not selfexplanatory. The information to enter for substantive elements not provided in the following table are 

self-explanatory or provided in this handbook or the DSSH.

Element Information to be Entered

Applicant’s/Insured’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.

(4) Substitute the required language for request of policy transfer with the following.

“Part I

I hereby request cancellation of my WFRP insurance policy with (Ceding Approved Insurance 

Provider Name) for the (Policy year of policy cancelled and transferred) because I have applied 

for insurance with another Approved Insurance Provider. I understand that if this form is not 

executed on or before the established cancellation date, the cancellation of my WFRP insurance 

will not become effective until the following policy year.”
October 2022 FCIC-18160-1 116

Exhibit 3 Form Standards (Continued)

C. Application, Policy Transfer/Application, and Policy Change (Continued)

(5) Substitute the required language to provide insurance for policy transfer with the following.

“Part II

By submission of this form, we agree to provide WFRP insurance to this applicant for the policy 

year specified above unless this form is not executed on or before the established cancellation 

date, in which case WFRP insurance will be provided for the following policy year.”

D. Policy Cancellation

(1) Substitute “Effective Policy Year” as a substantive element in place of “Effective Crop Year.”

(2) Substitute the cancellation request statement in DSSH with the following statement.

“I hereby request cancellation of my WFRP insurance policy shown on this cancellation. I 

understand that if this form is not executed on or before the cancellation date listed, the 

cancellation of my WFRP insurance will not become effective until the following policy year.”

(3) The following substantive elements, as provided by DSSH, are not required on a policy 

cancellation for WFRP policies. If they are included, complete each by entering “N/A.”

(a) “Name of Crop”

(b) “Options, Elections, or Endorsements”

The information to enter in all substantive elements are self-explanatory, provided in this handbook or 

the DSSH, or taken from the insured’s application.

E. Summary of Coverage and Policy Confirmation

(1) Substitute “Effective Policy Year” as a substantive element in lieu of “Effective Crop Year.”

(2) The following substantive elements, as provided by DSSH, are not required. If they are 

included, complete each by entering “N/A.”

(a) “Options, Elections, or Endorsements”

(b) “Percentage of Price Election, Projected Price or Amount of Insurance”

(c) “Crop(s) Insured”

(d) “Crop/Practice/Type”

The information to enter in all substantive elements are self-explanatory, provided in this handbook or 

the DSSH, or taken from the insured’s application.
October 2022 FCIC-18160-1 117

Exhibit 3 Form Standards (Continued)

F. Withdrawal of Claim for Indemnity

(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(s)”

(b) “Unit Number(s)”

(2) 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

(1) The AIPs are responsible for developing the WFHR form. The WFHR must be titled “WHOLEFARM HISTORY REPORT.” The AIPs are NOT authorized to modify or delete any of the required 

elements. Refer to Exhibit 4 for the WFHR required elements and example.

(2) In place of the certification statement in the DSSH, the WFHR must include the following 

certification statement immediately above the applicant/insured signature.

“I certify that to the best of my knowledge and belief all of the information on this form is 

correct. I understand the information on this form may be reviewed and audited. I understand 

that inaccurate information or my failure to retain or provide, upon request, records supporting 

the information on this form may result in denial of coverage, cancellation of my policy, 

ineligibility for indemnity, or recalculation of the insured revenue. I also understand that failure 

to report completely and accurately may result in sanctions under my policy, including but not 

limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 

U.S.C. §1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

(3) The WFHR must include:

(a) Collection of Information and Data (Privacy Act) Statement;

(b) Nondiscrimination Statement; and

(c) AIP Name and Address.

H. Inventory Report

(1) The AIPs are responsible for developing the Inventory Report form. The Inventory Report must 

be titled “INVENTORY REPORT.” The AIPs are not authorized to modify or delete any of the 

required elements. See Exhibit 5 for the Inventory Report required elements and example.

(2) In place of the certification statement in DSSH, the Inventory Report must include the following 

certification statement immediately above the applicant/insured signature.
October 2022 FCIC-18160-1 118

Exhibit 3 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).”

(3) The Inventory Report form must include:

(a) Collection of Information and Data (Privacy Act) Statement;

(b) Nondiscrimination Statement; and

(c) AIP Name and Address.

I. Accounts Receivable

(1) The AIPs are responsible for developing the Accounts Receivable Report form. The Accounts 

Receivable Report must be titled “ACCOUNTS RECEIVABLE REPORT.” ***

(2) The AIPs are not authorized to modify or delete any of the required elements. Refer to Exhibit 

8 for the Accounts Receivable Report required elements and example. ***

(3) In place of the certification statement in DSSH, the Accounts Receivable Report must include 

the following certification statement immediately above the applicant/insured signature. ***

“I certify that to the best of my knowledge and belief all of the information on this form is 

correct. I understand the information on this form may be reviewed and audited. I understand 

that inaccurate information or my failure to retain or provide, upon request, records supporting 

the information on this form may result in denial of coverage, cancellation of my policy, 

ineligibility for indemnity, or recalculation of insured revenue. I also understand that failure to 

report completely and accurately may result in sanctions under my policy, including but not 

limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 

U.S.C. §1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

(4) The Accounts Receivable Report must include: ***

(a) Collection of Information and Data (Privacy Act) Statement;

(b) Nondiscrimination Statement; and

(c) AIP Name and Address.
October 2022 FCIC-18160-1 119

Exhibit 3 Form Standards (Continued)

J. Market Animal and Nursery Inventory Report

(1) AIPs are responsible for developing the “Market Animal and Nursery Inventory Report” form. If 

a farm has animals or nursery, this form will be used in addition to the Inventory and Accounts 

Receivable form to handle the inventory for the animals and nursery. The AIPs are NOT 

authorized to modify or delete any of the required elements. Refer to Exhibit 7 for the Market 

Animal and Nursery Inventory Report required elements and example.

(2) If applicable, beginning and ending inventories are necessary to determine the RTC for animals

and nursery plants marketed during the insurance period on an accrual basis. A complete 

inventory of breeding and market animals and nursery stock must be documented in Part 2 of 

the Market Animal and Nursery Inventory. Part 3 is used to support the number of (inventory) 

market animals and to document culled breeding animals transferred from the breeding 

category to the market category and sold during the insurance period. Breeding animals 

produced on the farm or purchased as assets are accounted for using breeding animal 

inventories. Sales of breeding stock, including culls, are normally reported on Form 4797 (Sale 

of Business Property). Such income should not be reported on Schedule F but may be. 

However, there may be instances where culls are placed in a finishing operation and may be 

reclassified as market animals. Any culls that are reclassified as market animals and the sale of 

such animals is reported on the Schedule F, adjustments to the beginning inventory and the 

FOR are required. Otherwise, the sale of breeding animals or culls that is reported on Form 

4797 are considered uninsured animals and not included as allowable revenue or RTC. When 

applicable, a complete beginning inventory for animals and nursery commodities that will be 

marketed, including breeding or cull animals transferred to the market category, must be 

provided to the AIP on or before the SCD for calendar year tax filers. For an early or late fiscal 

year filer, it must be provided the later of the date the insured submits their application or last 

day of the month in which the fiscal year begins.

(3) An ending inventory must also be completed if an indemnity is to be claimed. Part 4 calculates 

the RTC for claim purposes using increases or decreases in inventory values during the

insurance period. The cost or basis for animals or nursery commodities purchased for resale 

during the insurance period and are not sold by the end of the insurance period are transferred 

to the Market Animal and Nursery Inventory Report and must be removed from the ending 

inventory prior to making inventory adjustments on the claim. Animals must be grouped 

according to the type/category corresponding to how they will be marketed to accurately value 

them. Local market value is determined at the beginning of the insurance period for beginning 

inventories, and for ending inventories at the end of the insurance period for each applicable 

type/category.

(4) If animals are marketed in pounds, gross inventory values will be determined by multiplying the 

number of animals × the average lbs. per animal for the type/category × applicable value/price 

per lb.
October 2022 FCIC-18160-1 120

Exhibit 3 Form Standards (Continued)

J. Market Animal and Nursery Inventory Report (Continued)

(5) For animals sold individually (by the head/animal), inventory values will be measured by 

multiplying the number of animals/livestock × the average value/price per animal for the 

type/category.

(6) Complete the beginning inventory (breeding animal inventory and market animal inventory for 

each applicable type/category of animals on hand at the beginning of the insurance period. 

Complete the ending inventory for animals that are on hand at the end of the insurance period. 

Include on the breeding animal inventory animals/livestock from which income is accounted for 

as gains or losses on Schedule D (Form 1040), Form 4797 (animals held for breeding, dairy 

purposes, or not held primarily for sale), or is depreciated on Form 4799.

(7) In place of the certification statement in DSSH, the Market Animal and Nursery Inventory 

Report must include the following certification statement immediately above the 

applicant/insured signature.

“I certify that to the best of my knowledge and belief all of the information on this form is 

correct. I understand the information on this form may be reviewed and audited, and used to 

determine my loss, if any, for the policy listed above. I understand that inaccurate information 

or my failure to retain or provide, upon request, records supporting the information on this 

form may result in denial of coverage, cancellation of my policy, ineligibility for indemnity, or 

recalculation of insured revenue. I also understand that failure to report completely and 

accurately may result in sanctions under my policy, including but not limited to voidance of the 

policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C. 

§3729, §3730 and any other applicable federal statutes).”

(8) The Market Animal and Nursery Inventory Report must include:

(a) Collection of Information and Data (Privacy Act) Statement;

(b) Nondiscrimination Statement; and

(c) AIP Name and Address.

K. Farm Operation Report

(1) The AIPs are responsible for developing the FOR form. The FOR must be titled “FARM 

OPERATION REPORT.” The AIPs are not authorized to modify or delete any of the required 

elements. Refer to Exhibit 8 for the FOR required elements and example.

(2) In place of the certification statement in the DSSH, the FOR must include the following 

certification statements immediately above the applicant/insured signature.
October 2022 FCIC-18160-1 121

Exhibit 3 Form Standards (Continued)

K. Farm Operation Report (Continued)

“I certify that to the best of my knowledge and belief all of the information on this form is 

correct. I understand that changes to intended commodities grown will result in changes to the 

insured revenue, premium rate, and indemnity. I understand the information on this form may 

be reviewed and audited. I understand that inaccurate information or my failure to retain or 

provide, upon request, records supporting the information on this form may result in denial of 

coverage, cancellation of my policy, ineligibility for indemnity, or recalculation of approved 

revenue. I also understand that failure to report completely and accurately may result in 

sanctions under my policy, including but not limited to voidance of the policy, and in criminal or 

civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C. §3729, §3730 and any 

other applicable federal statutes).”

(3) The FOR must include:

(a) Collection of Information and Data (Privacy Act) Statement;

(b) Nondiscrimination Statement; and

(c) AIP Name and Address.

L. Replant Payment Worksheet

(1) The AIPs are responsible for developing the Replant Payment Worksheet form. The Replant 

Payment Worksheet must be titled “REPLANT PAYMENT WORKSHEET.” The AIPs are not 

authorized to modify or delete any of the required elements. Refer to Exhibit 11 for the 

Replant Payment Worksheet required elements and example.

(2) In place of the certification statement in DSSH, the Replant Payment Worksheet must include 

the following certification statement immediately above the applicant/insured signature.

“I certify that to the best of my knowledge and belief all of the information on this form is 

correct. I understand the information on this form may be reviewed and audited. I understand 

that inaccurate information or my failure to retain or provide, upon request, records supporting 

the information on this form may result in denial of coverage, cancellation of my policy, 

ineligibility for indemnity, or recalculation of insured revenue. I also understand that failure to 

report completely and accurately may result in sanctions under my policy, including but not 

limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 

U.S.C. §1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

(3) The Replant Payment Worksheet form must include:

(a) Collection of Information and Data (Privacy Act) Statement;

(b) Nondiscrimination Statement; and

(c) AIP Name and Address.
October 2022 FCIC-18160-1 122

Exhibit 3 Form Standards (Continued)

M. Substitute Schedule F

(1) The Substitute Schedule F is a required document used to document an applicant’s/insured’s 

farm income and expenses for each year the applicant/insured did not file a Schedule F with the 

IRS. This form is used in the same manner as the Schedule F. The Substitute Schedule F is the 

current year Schedule F used by the IRS and must be titled “SUBSTITUTE SCHEDULE F FOR WFRP 

PURPOSES.” Refer to Exhibit 13 for the Substitute Schedule F required elements and example. 

***

(2) In place of the certification statement in DSSH, the Substitute Schedule F must include the 

following certification statement immediately above the applicant/insured signature.

“I certify that to the best of my knowledge and belief all of the information on this form is 

correct. I understand the information on this form may be reviewed and audited. I understand 

that inaccurate information or my failure to retain or provide, upon request, records supporting 

the information on this form may result in denial of coverage, cancellation of my policy, 

ineligibility for indemnity, or recalculation of insured revenue. I also understand that failure to 

report completely and accurately may result in sanctions under my policy, including but not 

limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 

U.S.C. §1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

(3) The Substitutes Schedule F must include:

(a) Collection of Information and Data (Privacy Act) Statement;

(b) Nondiscrimination Statement; and

(c) AIP Name and Address.

N. Yield and Revenue Report

(1) The AIPs are responsible for developing the Yield and Revenue Report. The Yield and Revenue 

Report must be titled “YIELD AND REVENUE REPORT.” The AIPs are not authorized to modify or 

delete any of the required elements. Refer to Exhibit 10 for the Yield and Revenue Report 

required elements and example.

(2) In place of the certification statement in DSSH, the Yield and Revenue Report must include the 

following certification statement immediately above the applicant/insured signature.
October 2022 FCIC-18160-1 123

Exhibit 3 Form Standards (Continued)

N. Yield and Revenue Report (Continued)

“I certify that to the best of my knowledge and belief all of the information on this form is 

correct. I understand that changes to intended commodities grown will result in changes to the 

insured revenue, premium rate, and indemnity. I understand the information on this form may 

be reviewed and audited. I understand that inaccurate information or my failure to retain or 

provide, upon request, records supporting the information on this form may result in denial of 

coverage, cancellation of my policy, ineligibility for indemnity, or recalculation of approved 

revenue. I also understand that failure to report completely and accurately may result in 

sanctions under my policy, including but not limited to voidance of the policy, and in criminal or 

civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C. §3729, §3730 and any 

other applicable federal statutes).” 

O. Allowable Revenue Worksheet

(1) The Allowable Revenue Worksheet is a required worksheet that the AIPs must use to determine 

an applicant’s/insured’s allowable revenue for each year in the whole-farm history period. The 

worksheet assists in identifying and documenting required adjustments to the 

applicant’s/insured’s tax reported revenue. The Allowable Revenue Worksheet must be titled 

“ALLOWABLE REVENUE WORKSHEET.” Refer to Exhibit 14 for the Allowable Revenue 

Worksheet required elements and example.

(2) In place of the certification statement in DSSH, the Allowable Revenue Worksheet must include 

the following certification statement immediately above the applicant/insured signature.

“I certify that to the best of my knowledge and belief all of the information on this form is 

correct. I understand the information on this form may be reviewed and audited. I understand 

that inaccurate information or my failure to retain or provide, upon request, records supporting 

the information on this form may result in denial of coverage, cancellation of my policy, 

ineligibility for indemnity, or recalculation of insured revenue. I also understand that failure to 

report completely and accurately may result in sanctions under my policy, including but not 

limited to voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 

U.S.C. §1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

(3) The Allowable Revenue Worksheet must include:

(a) Collection of Information and Data (Privacy Act) Statement;

(b) Nondiscrimination Statement; and 

(c) AIP Name and Address.
October 2022 FCIC-18160-1 124

Exhibit 3 Form Standards (Continued)

P. Claim for Indemnity Report

(1) The AIPs are responsible for developing the Claim for Indemnity Report. The Claim for 

Indemnity Report must be titled “CLAIM FOR INDEMNITY REPORT.” The AIPs are not

authorized to modify or delete any of the required elements. Refer to Exhibit 15 for the Claim 

for Indemnity Report required elements and example.

(2) In place of the certification statement in DSSH, the Claim for Indemnity Report must include the 

following certification statement immediately above the applicant/insured signature.

“I certify that to the best of my knowledge and belief all of the information on this form is 

correct. I understand the information on this form may be reviewed and audited, and used to 

determine my loss, if any, for the policy listed above. I understand that inaccurate information 

or my failure to retain or provide, upon request, records supporting the information on this 

form may result in denial of coverage, cancellation of my policy, ineligibility for indemnity, or 

recalculation of insured revenue. I also understand that failure to report completely and 

accurately may result in sanctions under my policy, including but not limited to voidance of the 

policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C. 

§3729, §3730 and any other applicable federal statutes).”

(3) The Claim for Indemnity Report must be:

(a) Collection of Information and Data (Privacy Act) Statement;

(b) Nondiscrimination Statement; and

(c) AIP Name and Address.

Q. Expected Value and Yield Source Document Certification Worksheet

(1) The AIPs are responsible for developing the Expected Value and Yield Source Document 

Certification Worksheet. The Expected Value and Yield Source Document Certification 

Worksheet must be titled “EXPECTED VALUE AND YIELD SOURCE DOCUMENT CERTIFICATION 

WORKSHEET.” The AIPs are not authorized to modify or delete any of the required elements. 

Refer to Exhibit 9 for the Expected Yield and Value Source Document Certification Worksheet 

required elements and example.

(2) In place of the certification statement in DSSH, the Expected Value and Yield Source Document 

Certification Worksheet must include the following certification statement immediately above 

the applicant/insured signature.
October 2022 FCIC-18160-1 125

Exhibit 3 Form Standards (Continued)

Q. Expected Value and Yield Source Document Certification Worksheet (Continued)

“I certify that to the best of my knowledge and belief all of the information on this form is 

correct. I understand the information on this form may be reviewed and audited, and used to 

determine my loss, if any, for the policy listed above. I understand that inaccurate information 

or my failure to retain or provide, upon request, records supporting the information on this 

form may result in denial of coverage, cancellation of my policy, ineligibility for indemnity, or 

recalculation of insured revenue. I also understand that failure to report completely and 

accurately may result in sanctions under my policy, including but not limited to voidance of the 

policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C. 

§3729, §3730 and any other applicable federal statutes).”

(3) The Expected Value and Yield Source Document Certification Worksheet must include:

(a) Collection of Information and Data (Privacy Act) Statement;

(b) Nondiscrimination Statement; and

(c) AIP Name and Address.
October 2022 FCIC-18160-1 126

Exhibit 4 Whole-Farm History Report

The following table provides descriptions of the WFHR 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(ae).Tax Year The five consecutive tax years prior to the policy year, not including the lag 

year.

7(ae).Allowable 

Revenue

Enter the allowable revenue that corresponds to each year entered in items 

6(a-e) (item 12 of Allowable Revenue Worksheet).

Exceptions: 

(1) For a qualifying person with four years of farm tax forms in their 

whole-farm history period enter:

(a) in item 7(a) the allowable revenue that corresponds to the 

lag year; and

(b) in items 7(b-e), the allowable revenue that corresponds to 

the tax year entered in items 6(b-e).

(2) For a qualifying person with three years of farm tax forms in their 

whole farm history period enter:

(a) in item 7(a), the allowable revenue that is the lowest of items 

7(b-e);

(b) in item 7(b), the allowable revenue that corresponds with the 

lag year; and

(c) in items 7(c-e), the allowable revenue that corresponds with 

the tax years entered in item 6(c-e).

(3) For a qualifying person that elects Micro Farm with four years of tax 

records in the whole-farm history period enter:
October 2022 FCIC-18160-1 127

Exhibit 4 Whole-Farm History Report (Continued)

Item Required Element Description

7(ae). Allowable Revenue 

(Continued) 

(a) in item 7(a) the allowable revenue that is the lowest of 

items 7(b-e); and

(b) in items 7(b-e) the allowable revenue that 

corresponds with the tax years entered in items 6(be).

(4) For a qualifying person that elects Micro Farm with three years 

of tax records in the whole-farm history period enter:

(a) in item 7(a) and (b) the allowable revenue that is the 

lowest of items 7(c-e); and

(b) in items 7(c-e), the allowable revenue that 

corresponds with the tax years entered in items 6(c-e).

8(ae).Indexed Revenue Enter the indexed revenue for each year that corresponds with the tax 

years entered in items 6(a-e). Refer to Subparagraph 71C.

9(ae).*** MAKE NO ENTRY. ***

10. Total

a. Total Allowable Revenue Enter the result of adding the allowable revenue for all tax years entered 

in item 6.

b. Total Indexed Revenue Enter the result of adding the indexed revenue for all tax years entered 

in item 6.

c. *** MAKE NO ENTRY. ***

11. Simple Average

a. Simple Average 

Allowable Revenue

Enter the result of dividing item 10a by five. Refer to Subparagraph 71A.

b. Simple Average Indexed 

Revenue

Enter the result of dividing item 10b by five, not to exceed the highest 

allowable revenue amount in column 7(a-e). Refer to Subparagraph 

71C(2).

12. Revenue Substitution

a. Revenue Substitution 

Average Revenue

If elected, enter the sum of the allowable revenue for all tax years 

divided by five after following procedures in Subparagraph 71B(1).

b. Revenue Substitution 

Average Indexed 

Revenue

If elected, enter the sum of the indexed revenue for all tax years divided 

by five after following procedures in Subparagraph 71B(1). 

13. Revenue Exclusion

a. Revenue Exclusion 

Average Revenue

If elected, enter the sum of the allowable revenue for all tax years 

divided by four after following procedures in Subparagraph 71B(2).

b. Revenue Exclusion 

Average Indexed 

Revenue

If elected, enter the sum of the indexed revenue for all tax years divided 

by four after following procedures in Subparagraph 71B(2). 

14. Revenue Cup Carryover Insureds Only: If elected, enter the result of multiplying the 

insured’s previous year’s approved revenue by 0.90.
October 2022 FCIC-18160-1 128

Exhibit 4 Whole-Farm History Report (Continued)

Item Required Element Description

15. Expanded Operation If applicable, enter the result of the calculation in Subparagraph 71. For 

Micro Farm, MAKE NO ENTRY.

16. Average

a. Average Allowable 

Revenue

(1) If no insurance option elected, enter the simple average (item 

11a).

(2) If an insurance option is elected, enter the amount for the 

applicable option elected (12a or 13a).

(3) If the insured elects more than one option, enter the amount 

for the option with the highest result (12a or 13a).

b. Indexed Average Revenue (1) If indexing is elected, but no insurance options are elected, 

enter the simple average indexed revenue (item 11b), not to 

exceed the highest allowable revenue amount in items 7(a-e).

(2) If indexing is elected and an insurance option is elected, enter 

the amount for the applicable option elected (item 12b or 13b), 

not to exceed the highest allowable revenue amount in items 

7(a-e).

(3) If the insured elects more than one option, enter the amount 

for the option with the highest result (12b or 13b) not to 

exceed the highest allowable revenue amount in items 7(a-e).

c. *** MAKE NO ENTRY. ***

17. Indexing:

Yes ☐

No ☐

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.

18. Insurance Options:

Substitution: 

Exclusion: 

Cup: 

Important: 

If more than one option is 

selected, the option with 

highest amount will be 

considered elected in 

determination of their 

whole-farm historic 

average.

Select the insurance option(s) the insured elects to use in determination 

of their whole-farm historic average.

19. Whole-Farm Historic 

Average

Enter the greater of item 14 (if elected), 15, 16a, or 16b.
October 2022 FCIC-18160-1 129

Exhibit 4 Whole-Farm History Report (Continued)

The following required entries are not illustrated on the WFHR example below.

Item Required Element Description

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 3 for required certification and other statements.
October 2022 FCIC-18160-1 130

Exhibit 4 Whole-Farm History Report (Continued)

The following is an example only. It is an example WFHR. AIPs must develop a WFHR using the required 

elements and statements.
October 2022 FCIC-18160-1 131

Exhibit 5 Inventory Report

The following table provides descriptions of the Inventory Report required elements.

PART 1: Producer Information

Item Required 

Element Description

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.
October 2022 FCIC-18160-1 132

Exhibit 5 Inventory Report (Continued)

PART 2: Beginning Inventory (First day of the Insurance Period)

Item Required 

Element Description

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)

Item Required 

Element

Description

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.
October 2022 FCIC-18160-1 133

Exhibit 5 Inventory Report (Continued)

Item Required 

Element Description

9. Value 

(Continued) 

For claims purposes, beginning inventories will be valued at the:

(1) actual price received if the commodity is sold prior to the time the claim is 

finalized, not less than zero; or

(2) local market value, not less than zero, on the first day of the month in which 

the claim is finalized based on the same applicable source used to determine 

the expected value on the FOR.

Example: 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 × 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, they sold 900 bushels, fed 70 bushels to 

his pet donkey, and 30 bushels were lost during storage. Each amount 

(900, 70 and 30) is a separate entry.

PART 4: Ending Inventory (Last Day of Insurance Period)

Item Required 

Element Description

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.
October 2022 FCIC-18160-1 134

Exhibit 5 Inventory Report (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 FOR. 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 × 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)

Item Required 

Element

Description

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.

Item Required Element Description

20. Applicant/Insured Signature and Date Applicant/Insured signature and date.

21. Agent’s Signature and Date Agent’s signature and date.

Refer to Exhibit 3 for required certification and other statements.
October 2022 FCIC-18160-1 135

Exhibit 5 Inventory Report (Continued)

The following is provided as an example only. AIPs must develop an Inventory and Accounts Receivable Report using the required elements and 

statements.
October 2022 FCIC-18160-1 136

Exhibit 6 Accounts Receivable Report

The following table provides descriptions of the Accounts Receivable 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

Item Required 

Element Description

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.
October 2022 FCIC-18160-1 137

Exhibit 6 Accounts Receivable Report (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 

$4,000.00 in item 8 as the amount receivable for corn. Insured 

would have to provide verifiable records for the amount of corn 

sold.

The ending amount for the current insurance period becomes the beginning 

amount for the subsequent insurance period.

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.

***

The following required entries are not illustrated on the Accounts Receivable Report example below.

Item Required 

Element

Description

11. Applicant/Insur

ed Signature 

and Date

Applicant/Insured signature and date.

12. AIP 

Representative 

Signature and 

Date

AIP representative signature and date.

Refer to Exhibit 3 for required certification and other statements.
October 2022 FCIC-18160-1 138

Exhibit 6 Accounts Receivable Report (Continued)

The following is provided as an example only. AIPs must develop an Accounts Receivable Report using the required elements and statements.
October 2022 FCIC-18160-1 139

Exhibit 7 Market Animal and Nursery Inventory Report

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

Item Required 

Element Description

5. Type/Category The type/category of breeding animals. A separate line entry must be made for 

each type of animal.

Section A: Beginning Inventory the First Day of the Insurance Period

Item Required 

Element

Description

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

Item Required 

Element

Description

7. Number The number of breeding animals on hand at the end of the insurance period. If 

breeding animals in beginning inventory will be carried over to the subsequent policy 

year, enter the number to be carried over. If all breeding animals in the beginning 

inventory on the line were disposed of, enter “0.” For breeding animals purchased or 

produced during the insurance period that will be carried over, enter number 

purchased and the number produced on separate lines. If applicable, enter the 

applicable type/category in Column 5.
October 2022 FCIC-18160-1 140

Exhibit 7 Market Animal and Nursery Inventory Report (Continued)

Part 3: Market Animals or Nursery

Type of Animals or Commodities

Item Required 

Element Description

8. Type/Category ***

Make a separate line entry for each type/category of animal, animal products, 

nursery, or greenhouse commodities. Do not include breeding animals that are 

not intended to be sold during the insurance period.

Make a separate line entry for each type/category of animal, nursery, or 

greenhouse commodity that was on hand at the beginning of the insurance period 

and died due to insured causes during the insurance period.

Make a separate line entry for each type/category of animal, nursery, or 

greenhouse commodity that was on hand at the beginning of the insured’s tax year 

but sold prior to insurance attaching.

Make a separate line entry for each type/category of animal, nursery, or 

greenhouse commodity when the cost/basis is greater than the sold price of the 

commodity.

Refer to AD for additional information concerning type/category.

Section A: Beginning Inventory - First Day of The Insurance Period

9. Number For each type/category of animals, animal products, nursery, or greenhouse 

commodities in column 8, enter the number on hand at the beginning of the 

insurance period.

10. Average Weight, 

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 the insured’ tax year but sold prior to insurance 

attaching, if applicable; or

(3) for animals that died due to insured causes during the insurance period, a 

dash (-).

Nursery or Greenhouse: Enter:

(1) for commodities raised or purchased for resale, enter the average value 

per commodity at the beginning of the insurance period or the insured’ tax 

year but sold prior to insurance attaching, if applicable; or
October 2022 FCIC-18160-1 141

Exhibit 7 Market Animal and Nursery Inventory Report (Continued)

Item Required

Element Description

11 Average Value 

(Continued)

(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) 

× 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) × the average value (column 12).

This value is the cost/basis that is transferred to the FOR.

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

Item Required 

Element Description

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.
October 2022 FCIC-18160-1 142

Exhibit 7 Market Animal and Nursery Inventory Report (Continued)

Item Required Element Description

17. Average Weight, 

Container Size, etc.

(Continued) 

Nursery or Greenhouse: Enter:

(f1) 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.

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) × 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 Enter the result of multiplying the number of commodities (column 16) ×

the average value (column 19).

21. Cost or Basis Enter the actual cost, when purchased, for commodities that were 

purchased in the insurance period and previous year(s), if applicable. If 

commodities listed on the line were not purchased, make no entry. 

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 15.

24. Total Ending Value 

Less Cost or Basis

Total of Column 22.
October 2022 FCIC-18160-1 143

Exhibit 7 Market Animal and Nursery Inventory Report (Continued)

Part 4: Inventory Adjustment (To Be Completed Only if a Claim Filed)

Item Required 

Element Description

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.

Item Required Element Description

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 3 for required certification and other statements.
October 2022 FCIC-18160-1 144

Exhibit 7 Market Animal and Nursery Inventory Report (Continued)

The following is provided as an example only. AIPs must develop a Market Animal and Nursery Inventory Report using the required elements and 

statements.
October 2022 FCIC-18160-1 145

Exhibit 7 Market Animal and Nursery Inventory Report (Continued)

The following is provided as Livestock example only. Refer to the second FOR in Exhibit 8 for livestock example.
October 2022 FCIC-18160-1 146

Exhibit 8 Farm Operation Report

The following table provides descriptions of the FOR 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 or 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

Item Required 

Element Description

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 Subparagraph 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. Refer to Exhibit 19.
October 2022 FCIC-18160-1 147

Exhibit 8 Farm Operation Report (Continued)

Item Required 

Element Description

10. Yield Expected yields used will be in accordance with the section 18 of the policy and 

Exhibit 18 of this handbook.

For animals that will be sold by the head enter 1.0. For animals that are sold by the 

pound, enter the expected average weight at which the insured expects to sell the 

animal in the insurance period.

The unit of measure must be consistent with how the intended commodity is 

marketed, such as bushels, tons, pounds, hundredweight, boxes, cartons, head, etc. 

Include the unit of measure immediately after the yield amount. Refer to Exhibit 20

for units of measure.

Make no entry if item 7 is the combined direct marketing or micro farm commodity 

code.

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 20 for units of measure.

12. Expected 

Revenue 

(10x11)

Enter the result of multiplying item 10 × item 11. Enter method of establishment 

immediately after the dollar amount.

Make no entry if item 7 is the combined direct marketing or micro farm commodity 

code.

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;
October 2022 FCIC-18160-1 148

Exhibit 8 Farm Operation Report (Continued)

Item Required 

Element Description

13A. Intended 

Quantity 

(Continued) 

Important: Include only bearing acres for perennial field grown commodities.

(2) total number/amount that will be produced and/or purchased for resale;

(3) total number of animals to be sold by the head; and

(4) total tons, hundredweight, or pounds, as applicable, for animals or animal 

products.

When the same intended commodity is planted and harvested more than once in 

the insurance period, enter the total number of acres planted. Refer to 

Subparagraph 48(5) for more information.

Example: Insured A intends to plant and harvest carrots on the same five acres 

two separate times during the insurance period. This is a normal 

practice for the insured and is considered a GFP for the area. Enter 

10 acres of carrots for the year.

Make no entry for commodities added to FOR after SCD.

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 × $1.00).

Make no entry for commodities added to FOR after SCD.
October 2022 FCIC-18160-1 149

Exhibit 8 Farm Operation Report (Continued)

Item Required 

Element Description

13C. Share Enter the insured’s share in the commodity at the time the IFOR 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

[(12 × 13A) - 

13B) × 13C] × 

13D.

(1) Enter the result of multiplying (item 12 × item 13A, minus item 13B) × item 

13C. Multiply the result by item 13D. Round to the nearest whole dollar. If 

the result is a negative number, enter zero.

(2) If item 7 is the combined direct marketing or micro farm commodity code, 

enter the result of multiplying (item 11 × item 13A, minus item 13B) × item 

13C. Multiply the result by item 13D. Round to the nearest whole dollar. If 

the result is a negative number, enter zero.

Revised

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.
October 2022 FCIC-18160-1 150

Exhibit 8 Farm Operation Report (Continued)

Item Required 

Element Description

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:

(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 × item 14A minus item 14B) × item 

14C. Round to the nearest whole dollar. If the result is a negative number, 

enter zero.

If item 7 is the combined direct marketing or micro farm commodity code, 

enter the result of multiplying (item 11 × item 14A minus item 14B) × item 

14C. Multiply the result by item 14D. Round to the nearest whole dollar. If 

the result is a negative number, enter zero.
October 2022 FCIC-18160-1 151

Exhibit 8 Farm Operation Report (Continued)

Item Required 

Element Description

14E. Total Expected 

Revenue 

(Continued) 

(2) Carry over the total expected revenue from item 13D of any commodity 

not changed during the insurance period.

(3) If changes were made on the farm so that during the insurance period any 

actual commodity to be produced, purchased, or otherwise added to the 

farm operation for revenue during the insurance period is not the same as 

shown on the intended report:

(a) Carry over the total expected revenue from item 13D of any 

intended commodity that was lost due to an insured or uninsured 

cause and not replaced with another commodity;

(b) Carry over the total expected revenue from item 13D of any 

intended commodity that was lost due to an uninsured cause and 

replaced with another commodity; or

(c) If a commodity was planted or purchased to replace an intended 

commodity that was lost due to an insured cause; subtract the 

total expected revenue of the replacement commodity from the 

total expected revenue of the intended commodity as shown in 

item 13D.

(i) Enter the result of (b) if the result is a positive number.

(ii) Enter zero if the result of (b) is a negative number

Final

Item Required Element 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 19 of WFHR)

Enter the amount from item 19 of the applicant’s/insured’s current 

WFHR.

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.
October 2022 FCIC-18160-1 152

Exhibit 8 Farm Operation Report (Continued)

Item Required Element Description

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. *** MAKE NO ENTRY. ***

22a. *** MAKE NO ENTRY. ***

22b. *** MAKE NO ENTRY. ***

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 FOR (i.e., two separate plantings of the same 

commodity on the same acreage during the insurance period). 

Document the insured’s license number or authorization verification to 

produce industrial hemp.

24. Integrated/Post-Production 

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 FOR example below.

Item Required Element Description

25. Applicant/Insured Signature @ 

SCD and Date

Applicant/insured signature @ SCD and date. Insured must sign 

and date FOR each time it is updated.

26. Agent’s Signature @ SCD and 

Date

Agent’s signature @ SCD and date. Agent must sign, and date 

FOR 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 FOR each time it is updated.

28. Agent’s Signature @ Revised 

Reporting Date and Date

Agent’s signature @ Revised Reporting Date and date. Agent 

must sign, and date FOR each time it is updated.

29. Insured Signature @ Final 

Reporting and Date

Insured signature @ Final Reporting and Date and date.

30. Agent’s Signature @ Final 

Reporting and Date

Agent’s signature @ Final Reporting and Date and date.

Refer to Exhibit 3 for required certification and other statement.
October 2022 FCIC-18160-1 153

Exhibit 8 Farm Operation Report (Continued)

The following is provided as an example only. AIPs must develop a Farm Operations Report using the required elements and statements.
October 2022 FCIC-18160-1 154

Exhibit 8 Farm Operation Report (Continued)

The following is provided as an example to include the combined direct marketing commodity code.
October 2022 FCIC-18160-1 155

Exhibit 8 Farm Operation Report (Continued)

The following is provided as Livestock example only. 
October 2022 FCIC-18160-1 156

Exhibit 9 Expected Value and Yield Source Document Certification Worksheet

The following table provides descriptions of the Expected Value and Yield Source Document Certification 

Worksheet required elements.

Expected Value and Yield Source Document Certification Worksheet

Part 1: Producer Information

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

Item Required 

Element Standard

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. Make no entry if item 6 is the combined 

direct marketing commodity code.

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 by SCD or the date the RFOR is submitted or revised 

if the commodity was not on the IFOR.

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 

value certified on this worksheet by the SCD or the date the RFOR is submitted or 

revised if the commodity was not on the IFOR.
October 2022 FCIC-18160-1 157

Exhibit 9 Expected Value and Yield Source Document Certification Worksheet (Continued)

The following will only be completed when the insured has listed the Combined Direct Marketing or Micro 

Farm Commodity Code on the FOR.

Part 3: Combined Direct Marketing Commodity or Micro Farm Information

Item Required 

Element Standard

16. Name of Market Enter the name of the market that sells the direct market commodities. For 

Micro Farm, MAKE NO ENTRY.

17. Years Produced Enter the last three years preceding the policy year, including the lag year.

18. Total Number of 

Planted Acres

Enter the total number of planted acres, for each year listed in item 17, of all 

commodities reported as Combined Direct Marketing or Micro Farm.

19. Revenue Enter the allowable revenue from the complete marketing record of all 

commodities on the farm operation reported as Combined Direct Marketing or 

Micro Farm for each year listed in item 17.

20. Average Enter the three-year average number of acres and allowable revenue in the 

respective column.

21. Expected Value 

per Acre

Enter the result of dividing the three-year average allowable revenue by the 

three-year average number of acres in item 20.

22. Remarks Enter any pertinent information relating the information provided on this 

worksheet.

The following required entries are not illustrated on the Expected Value and Yield Source Document 

Certification Worksheet example below.

Item Required Element Standard

23. Applicant/Insured Signature and Date Applicant/Insured Signature and Date.

24. AIP Representative Signature and Date AIP Representative Signature and Date.

Refer to Exhibit 3 for required certification and other statements.
October 2022 FCIC-18160-1 158

Exhibit 9 Expected Value and Yield Source Document Certification Worksheet (Continued)

The following is provided as an example only. AIPs must develop an Expected Value and Yield Source Document Certification Worksheet using the 

required elements and statements.
October 2022 FCIC-18160-1 159

Exhibit 10 Yield and Revenue Report

The Yield and Revenue Report is used to report yield and revenue history for commodities not insured under 

an individual yield or ARH coverage policy. 

Part 1: Producer Information

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

Item Required Element Standard

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/Variety: Enter the type/variety of the commodity, if applicable.

10. Unit of Measure: Enter the unit of measure consistent with how the commodity is marketed.

11. Year Produced Enter the four consecutive years preceding the policy year.

12. Total Production Enter the total production for the commodity corresponding to the year in 

item 11. The amount should be in the unit of measure listed in item 10. If a 

replacement yield is used, MAKE NO ENTRY.

13. Acres Enter the number of acres planted to the commodity for the year 

corresponding to item 11. If a replacement yield is used, MAKE NO ENTRY.

14. Average Yield (1) For insured’s that have production history, enter the result of dividing 

item 12 by item 13. 

(2) For insured’s that have no production history, enter a replacement 

yield.

15. Net Revenue For commodities that are listed on the FOR that are direct marketed, enter the 

total amount of revenue received for the commodity less any required 

adjustments.

16. Average Revenue For commodities that are listed on the FOR that are direct marketed, enter the 

result of dividing item 15 by item 13, round to the nearest cent.

17. Insured’s Share: For commodities that are listed on the FOR that are direct marketed, enter the 

insured’s share of the insured commodity.

18. 100% Share 

Equivalent Revenue

For commodities that are listed on the FOR that are direct marketed, enter the 

result of item 16 divided by item 17.

19. Replacement Yield: Enter a replacement yield for the commodity. Refer to Exhibit 18.

20. Expected Yield: Enter the result of adding all column 14 entries and dividing by four.
October 2022 FCIC-18160-1 160

Exhibit 10 Yield and Revenue Report

Item Required 

Element Standard

21. Expected 

Value:

Enter the result of adding the three most recent revenues in column 16 and dividing by 

three. This amount may only be used as an expected value for the commodity if the 

insured’s three-year average is determined to be the expected value.

22. Record 

Type: 

Select the type of record the insured can submit if requested:

 Farm Stored – measured by the insured/AIP

 Pick/Daily Sales Record

 Yield Monitoring System

 Appraisal (non-loss)

 Field Harvest Record

 Claim for Indemnity

 Livestock Feeding Records

 Third-party Record

 Direct Market

 Other

Insured must provide copies of the record, if requested by the AIP.

23. Remarks: Enter any pertinent information relating the information provided on this report.

The following required entries are not illustrated on the Expected Value and Yield Source Document 

Certification Worksheet example below.

Item Required Element Standard

24. Applicant/Insured Signature and Date Applicant/Insured Signature and Date.

25. Agent’s Signature and Date Agent’s Signature and Date.

Refer to Exhibit 3 for required certification and other statements.
October 2022 FCIC-18160-1 161

Exhibit 10 Yield and Revenue Report (Continued)

The following is provided as an example only. AIPs must develop a Yield and Revenue Report using the required elements and statements.
October 2022 FCIC-18160-1 162

Exhibit 11 Replant Payment Worksheet

The following table provides descriptions of the Replant Payment Worksheet (if applicable) required elements.

Item Required Element Description

1. Policy Year: The current policy year. Includes beginning and ending month of fiscal year if 

applicant/insured filed Federal tax on fiscal year basis.

2. State/County: State and county where the majority of the total expected revenue for the policy 

year will be derived.

3. Policy Number: Policy number for which payment is being calculated.

4. Claim Number: Claim Number assigned by AIP.

5. Insured 

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.

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 FOR) × coverage level).
October 2022 FCIC-18160-1 163

Exhibit 11 Replant Payment Worksheet (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 FOR) × 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 

× 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, from item 14C on the RFOR, 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); and

(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.

Item Required Element Description

24. Insured’s Signature and Date Insured signature and date.

25. AIP Representative Signature and Date AIP representative’s signature and date.

Refer to Exhibit 3 for required certification and other statements.
October 2022 FCIC-18160-1 164

Exhibit 11 Replant Payment Worksheet (Continued)

The following is provided as an example only. AIPs must develop a Replant Payment Worksheet using the required elements and statements. 
October 2022 FCIC-18160-1 165

Exhibit 12 Schedule F Example

Example of Completed Schedule F Form:
October 2022 FCIC-18160-1 166

Exhibit 12 Schedule F Example (Continued)
October 2022 FCIC-18160-1 167

Exhibit 13 Substitute Schedule F Example

(1) The Substitute Schedule F is a required worksheet used by entities in the business of farming that do 

not complete and file a Schedule F. This form is used to document income and expenses for the 

purpose of WFRP in the same manner as those who file a Schedule F. 

(2) The Substitute Schedule F will be completed by the insured using the instructions provided by the IRS 

for the Schedule F.

(3) The following table provides descriptions of the Substitute Schedule F required elements not provided 

for by the IRS instruction.

The following required entries are not illustrated on the Substitute Schedule F example below.

Required Element Description

Insured’s Signature and Date Insured signature and date.

AIP Representative Signature and Date AIP representative’s signature and date.
October 2022 FCIC-18160-1 168

Exhibit 13 Substitute Schedule F Example

The following is provided as an example only:
October 2022 FCIC-18160-1 169

Exhibit 14 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.

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 2020 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 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.
October 2022 FCIC-18160-1 170

Exhibit 14 Allowable Revenue Worksheet (Continued)

C. Required Elements Description

Item Required Elements Description

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.

Note for Accrual Filers Only: Item 37 of the Schedule F represents the 

total amount of revenue received from the sale of animals or other 

commodities purchased of resale and produced during the insurance 

period. Revenue from animals or other commodities that were 

produced during the insurance period must be determined and, that 

amount, entered in the line titled “Sale of livestock, produce, grains, 

and other products you raised.”

For farm revenue item “cooperative distributions,” enter the taxable 

amount the applicant/insured entered in item 3b or 38b on their 

Schedule F. (Include only those amounts directly related to the sale of 

commodities.)

For farm revenue item “agricultural program payments,” enter the 

taxable amount the applicant/insured entered in item 4b or 39b on 

their Schedule F.
October 2022 FCIC-18160-1 171

Exhibit 14 Allowable Revenue Worksheet (Continued)

C. Required Elements Description

Item Required Elements Description

8. Amount on Schedule 

F (Continued) 

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 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.

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 crop disaster payments.
October 2022 FCIC-18160-1 172

Exhibit 14 Allowable Revenue Worksheet (Continued)

C. Required Elements Description

Item Required Elements Description

9. Revenue 

Adjustment Amount 

and Code 

(Continued) 

(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”. 

***

FOR ACCRUAL FILERS: For farm revenue item “sales of animals and 

other resale items, less the cost, or other basis, of such items” enter 

the exact dollar amount the applicant/insured entered in item 46 of 

their Schedule F, immediately followed by adjustment code “(A)”;

For farm revenue item “cooperative distributions,” enter the amount 

of such distributions that are not directly related to the production of 

commodities insured under the WFRP policy immediately followed by 

adjustment code “(C).”

For farm revenue item “other income, including federal and state 

gasoline or fuel tax credit or refund,” enter the amount equal to the 

revenue received from federal and state gasoline or fuel tax credits or 

refunds, immediately followed by an adjustment code “(A).” Also 

enter any amount that meets any of the conditions listed below for 

any other revenue identified in this farm revenue item.

For each farm revenue item not listed above, enter the amount equal 

to:

(1) the post-production costs, including any prepaid amounts 

reimbursed from a previous tax year, immediately followed by 

adjustment code “(B)”;

(2) all revenue earned from commodities not insurable under 

WFRP, immediately followed by adjustment code “(I)”;

(3) all revenue not directly related to production of commodities, 

immediately followed by adjustment code “(H)”;

(4) the net gain from commodity hedges, immediately followed by 

adjustment code “(G)”; and
October 2022 FCIC-18160-1 173

Exhibit 14 Allowable Revenue Worksheet (Continued)

C. Required Elements Description

Item Required Elements Description

9. Revenue Adjustment 

Amount and Code 

(Continued) 

(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.

Exception: For Micro Farm, revenue generated from postproduction operations and value-added may be included 

in allowable revenue.

Verifiable records must be provided to determine the amount of postproduction costs, indirect revenue, revenue from commodities not 

insurable under WFRP, and other revenue enter in item 9.

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.

Item Required Elements Description

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 3 for required certification and other statements.
October 2022 FCIC-18160-1 174

Exhibit 14 Allowable Revenue Worksheet (Continued)

The farm revenue listed on the Schedule F has changed over time and may change in future years. Therefore, 

the items to be listed in the required element titled “Schedule F Part I Income” may vary from year to year. 

The following example Allowable Revenue Worksheet provides the farm revenue items listed on the 2020 

Schedule F.
October 2022 FCIC-18160-1 175

Exhibit 15 Claim for Indemnity Form

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. *** MAKE NO ENTRY. ***

13. *** MAKE NO ENTRY. ***

14. *** MAKE NO ENTRY. ***

15. *** MAKE NO ENTRY. ***

16. *** MAKE NO ENTRY. ***

17. Approved Revenue Approved revenue for the policy year. Enter amount from item 21b on the 

FOR.

18. *** MAKE NO ENTRY. ***

19. Coverage Level Coverage level elected by insured.

20. Insured Revenue The amount of revenue insured under WFRP. Enter result of multiplying 

item 17 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.
October 2022 FCIC-18160-1 176

Exhibit 15 Claim for Indemnity Form (Continued)

Item Required Elements Description

22. Deductible The amount of revenue not insured by the WFRP policy. Enter the result of 

Item 17 - (item 17 × coverage level). ***

23. *** MAKE NO ENTRY. ***

24. RTC Adjustment The amount of NAP payments and indemnities from insurance policies not 

authorized by the Act in excess of the deductible to be included as RTC. If 

item 22 is equal to or greater than item 21, enter “0.” If item 22 if less than 

item 21, enter the result of subtracting item 22 from item 21.

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.

27. Accounts Receivable 

Adjustment

Total dollar amount of adjustments made for policy year for accounts 

receivable on Accounts Receivable Report. Enter the amount from item 10 

on the Accounts Receivable Report. This amount may be positive or 

negative.

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;

(4) net gains from commodity hedging; and

(5) the amount in item 24 (NAP payments and indemnities from other 

insurance policies not authorized under the Act that exceed the 

deductible).

(6) any expense amounts which reduced the price the insured received 

for a commodity that were not considered when determining the 

expected value of that commodity unless the AIP determines that 

the reduction was due to an insurable COL occurring prior to the 

harvest or EOIP on the commodity.
October 2022 FCIC-18160-1 177

Exhibit 15 Claim for Indemnity Form (Continued)

29. All Other Adjustments 

(Continued)

Exceptions:

Do not include:

(1) ARC/PLC payments;

(2) Replant payments; or

(3) indemnities paid by another policy for damage or loss to a 

commodity that is not covered by WFRP such as timber, animals for 

show, pasture or rangeland insured under the Rainfall Index or 

Vegetation Index policies, or commodities or portions of 

commodities produced for feed for use on the insured’s operation.

All other adjustments must be documented in the Narrative or on a Special 

Report and attached to the Claim for Indemnity Form.

30. Revenue-to-Count 

(25+26+27+28+29)

RTC for determining indemnity. Sum the result of item 25 + item 26 + item 

27 + item 28 + item 29. Enter “0” if sum of all items is negative.

31. Revenue Loss Dollar amount of revenue loss for the policy year. Enter the result item 20 

minus item 30.

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.”
October 2022 FCIC-18160-1 178

Exhibit 15 Claim for Indemnity Form (Continued)

The following required entries are not illustrated on the Claim for Indemnity Report example below.

Item Required Elements Description

37. Applicant/Insured’s 

Signature and Date

Insured signature and date.

38. AIP Representative 

Signature and Date

AIP representative’s signature and date.
October 2022 FCIC-18160-1 179

Exhibit 15 Claim for Indemnity Form (Continued)

The following is provided as an example only. AIPs must develop a Claim for Indemnity Form using the required elements and statements.
October 2022 FCIC-18160-1 180

Exhibit 16 Direct Marketing Sales Records

The following forms are examples only for commodities not considered combined direct marketing.
October 2022 FCIC-18160-1 181

Exhibit 16 Direct Marketing Sales Records

The following forms are examples only for commodities not considered combined direct marketing.
October 2022 FCIC-18160-1 182

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 20 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.

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
October 2022 FCIC-18160-1 183

Exhibit 17 Inventory Valuation Guidelines (Continued)

E. Commodities Other Than Commodities Held to Realize Gain, Purchased for Resale, Animals, Animal 

Products, Nursery, and Greenhouse (Continued)

(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 (in order of precedence) 

at the:

(a) actual price received if the commodity is sold prior to the time the claim is finalized;

(b) local market value on the first day of the month in which the claim is finalized by the AIP 

based on the same applicable expected value source used to determine the expected 

value if available; or

(c) the source the AIP agrees is the most accurate in Exhibit 18. This only applies when the 

original source is not available or when it is not regularly updated to provide timely 

estimates of commodity value (i.e., FCIC prices).

Example: 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.
October 2022 FCIC-18160-1 184

Exhibit 18 Expected Value and Yield Guidelines

This exhibit provides instructions and guidelines for determining the expected value and expected yield of 

commodities the applicant/insured intends to produce or purchase for resale in the insurance period, as 

provided on the FOR. Refer to Exhibit 2 for the definition of expected value.

A. Determinations

(1) Expected values and expected yields used must be in accordance with the section 18 of the 

policy and this exhibit and will be calculated as of:

(a) The date the IFOR is submitted for commodities on the IFOR;

(b) The date the RFOR is submitted for commodities that are different than those submitted 

on the IFOR (expected values will be carried forward from the IFOR for commodities on 

the IFOR);

(c) The date of planting for commodities that were planted and reported after the RFOR 

date and for which a late revision is allowed by the AIP; or

(d) The date the marketing contract becomes effective for commodities produced under a 

marketing contract for the portion of expected production under contract (subject to 

the limitation in section 17(c)(3) of the policy.

(2) Expected values for combined direct marketing commodities must be determined in 

accordance with section 51 of the policy and Paragraph 150 of this handbook.

(3) For Micro Farm, expected values must be determined in accordance with the Micro Farm 

Provisions and Paragraph 161 of this handbook.

(4) The insured cannot increase the expected value of a commodity on the FOR after they have 

submitted their IFOR (unless a marketing contract is applicable).

(5) Expected value and yields must be documented on the Expected Value and Yield Source 

Document Certification Worksheet.

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 FOR. An expected value per unit of 

measure, such as bushels, pounds, tons, boxes, etc., must be determined for each commodity 

listed. Refer to Exhibit 20 for units of measure, abbreviations, and the numeric code for RMA 

processing.

If the same commodity has different rate codes or significantly different expected values, it 

must be listed on multiple lines of the FOR with a line for each expected value to accurately 

determine the expected revenue. The same commodity may have different expected values 

due to some of the following (but not limited to these):
October 2022 FCIC-18160-1 185

Exhibit 18 Expected Value and Yield Guidelines (Continued)

B. Expected Value (Continued)

(a) different practice, type or variety of the same commodity;

(b) different markets used, such as fresh, processed, retail, direct marketed, or wholesale;

(c) some production may be contracted for a specified price with remaining production that 

will be sold on the open market;

(d) multiple planting/harvest of the commodity at different times of the year;

(e) some production may be from organically grown commodity and the remaining 

production may be conventionally grown; and

(f) free tonnage raisins versus reserve tonnage raisins.

Note: 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) 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.

(b) If adjustments to the expected value for a commodity or line on the FOR or inventory 

reports result in a negative value, the expected value for that commodity or line entry 

must be zero. Negative values are not allowed as expected values. Weighted average 

values for a commodity cannot be used to compensate for negative values for a specific 

type or variety of a commodity.

(c) The expected value for a commodity may be adjusted to reflect any customary charges, 

such as, but not limited to, seed costs or drying expenses, not included in the price 

source.

(d) For commodities insured under an ARH Policy, the expected yields and values should 

reflect the yields and values the insured’s ARH policy is insured at. If the insured has 

produced the commodity in years prior to the first year of their whole-farm history 

period and the AIP agrees the years prior to their whole-farm history period do not 

reflect the yields and values of the commodity the insured can expect to produce during 

the insurance period, the yields and values may be adjusted as determined by the AIP, 

using all years within the whole-farm history period, including the lag year, if available 

when the IFOR is submitted.
October 2022 FCIC-18160-1 186

Exhibit 18 Expected Value and Yield Guidelines (Continued) 

B. Expected Value (Continued)

(3) Required Adjustments to Expected Values for Vertically Integrated Operations and Related 

Taxpayers

The integrated relationship between the divisions or related operations of an integrated 

operation and the interaction between related taxpayers can affect the value, cost, and price of 

commodities, goods, and services used by such persons. It can also affect the expected value 

an insured may report. The expected value reported for these farm operations must be 

reasonable and comparable with expected values for the commodity from objective third party 

market information.

Adjustments made for the cost of post-production operations from such persons must also be 

customary and comparable to the costs of disinterested third parties. 

Refer to the CIH for acceptable record requirements for vertically integrated entities. The 

Market Certification is not applicable to WFRP and Micro Farm.

(4) Methods for Determining Expected Values

The expected value on the FOR and the Expected Value and Yield Source Document 

Certification Worksheet will be based on the information reported by the insured and reviewed 

by the AIP at the time the expected value is determined as required in accordance with Section 

17(c)(4) of the WFRP policy. They must be realistic and consistent with available market 

information supported by verifiable or direct marketing sales records and take into account 

current local markets, cycles, and trends. Post-production operations and the cost of 

commodities purchased for resale, if applicable, must be removed from the expected values. 

Market readiness expenses may be left in the expected values.

The following provides the methods and sources for determining and reviewing expected 

values for commodities, in order of priority:

(a) IF THE COMMODITY is under a marketing contract, THEN USE the price contained in the 

marketing contract. Refer to Subparagraph B(5) below for more information.

(b) IF THE COMMODITY is produced and sold during the current insurance period, but prior 

to the time the IFOR is completed, THEN USE the actual sale price the commodity was 

sold for.

(c) IF THE COMMODITY is not under a marketing contract to be sold at a specified price and 

has not been sold during the insurance period prior to the IFOR being completed, THEN 

USE the price that the AIP agrees best reflects the price the insured can expect to 

receive on the insured’s farm and for the market where the commodity will be sold, 

obtained from the most applicable following source for the insured’s farm operation 

(the following sources do not have an order of priority):
October 2022 FCIC-18160-1 187

Exhibit 18 Expected Value and Yield Guidelines (Continued)

B. Expected Value (Continued)

(i) Prices reported by AMS, including Market News Reports, NASS, ERS, or other 

government agency for the commodity in the area where the applicant/insured 

normally sells the commodity. Prices that represent open market sales by first 

handlers, i.e., shipping point prices, generally include post-production costs that 

must be removed from the expected value, if applicable.

Example: 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.

(ii) The FCIC published price or other price election used to determine the insured’s 

guarantee for an FCIC reinsured policy, less local basis, where the insured 

normally sells the commodity. These prices may include post-production costs 

that must be removed and/or the prices may require an adjustment to accounts 

for packouts and utilization values, i.e., apple prices should be adjusted for a 

normal packout by variety considering percent packed for fresh and processing 

local market prices that results in an expected value that is reasonable for a 

loose field box of apples by variety. These prices may also require adjustment 

for average production quality, i.e., alfalfa prices adjusted for average quality of 

all yearly cuttings.

Example 1: The FCIC published price for potatoes is $15.00 per 

hundredweight. The post-production costs are $5.00 per 

hundredweight. The price the insured can expect to receive is 

$10.00 per hundredweight.

Example 2: The FCIC published price for Honeycrisp apples is $37.95, the 

packing costs average $6.90/box, and average 56% of the loose 

field box packs fresh, the price the insured can expect to receive is 

$18/box after adjusting for packing costs and weighting the loose 

field box average yield for fresh and processing apple prices.

(iii) The current local, average, cash bid price for the commodity in the local area for 

the month of harvest where the insured normally sells the commodity.

(iv) The average new crop price offered by at least two commercial buyers, one 

selected by the insured and one by the AIP.

(v) Prices from a reliable disinterested third-party source that the AIP approves. 

Refer to Subparagraph B(6)(b) below. These prices may include post-production 

costs that must be removed.

(vi) The average market price used to calculate NAP payments for the area where 

the insured normally sells their commodity (including direct market price if 

applicable). 
October 2022 FCIC-18160-1 188

Exhibit 18 Expected Value and Yield Guidelines (Continued)

B. Expected Value (Continued)

(vii) Other price information provided or approved by RMA.

(d) IF THE COMMODITY is not under a marketing contract to be sold at a specified price, has 

not been sold during the insurance period prior to the IFOR being completed, and no 

disinterested third-party source exists, THEN USE the average price the insured received 

for the three most recent years.

Note: The AIP must adjust the three-year average to reflect local market cycles 

and trends as stated in Subparagraph B(4) below. 

(e) IF THE COMMODITY is not under a marketing contract to be sold at a specified price, has 

not been sold during the insurance period prior to the IFOR being completed, and no 

acceptable price source exists, THEN USE zero as the expected value and all revenue will 

be considered RTC for claim purposes. 

(5) 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). 

(6) Sources of Expected Values
October 2022 FCIC-18160-1 189

Exhibit 18 Expected Value and Yield Guidelines (Continued)

B. Expected Value (Continued)

(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 FCIC published price, the AIP will not agree to using the FCIC 

published price to determine the expected value;

(ii) In the marketing area where the insured’s commodity will be sold. For example, 

the basis used to determine the price of the commodity (if any) will be the 

insured’s local basis;

(iii) When the commodity will be harvested. For example, the AIP will not agree to 

using a source that includes a price premium for storing the commodity after 

harvest;

(vi) At the time the expected value is determined in accordance with section 17(c)(4) 

of the WFRP policy. For example, if FCIC published a price for the commodity in 

November which is significantly different from the price the insured can 

reasonably expect to receive at harvest at the time the insured submits their 

IFOR the following March, the AIP will not agree to using the FCIC published 

price to determine the expected value;

(vii) Must be recorded on the Expected Yield and Value Source Document 

Certification Worksheet; and

(viii) Verifiable records or direct marking sales records submitted with the Expected 

Yield and Value Source Document Worksheet, by the SCD.

(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;

(iv) Marketing Cooperative Reports; and

(v) Futures Market Prices for the month of harvest with basis removed to adjust to 

the local market basis.
October 2022 FCIC-18160-1 190

Exhibit 18 Expected Value and Yield Guidelines (Continued)

B. Expected Value (Continued)

Important: The policy does NOT allow the use of alternative insurance prices that 

may be offered by privately administered non-reinsured supplemental 

products that are available.

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 FOR. An expected yield must be determined for 

each commodity and rate code listed. Expected yields must be:

(a) reasonable, realistic, and consistent with available local agronomic information; and

(b) supported by verifiable records submitted by the insured by SCD for commodities on 

their IFOR or at the time the RFOR is submitted for other commodities. The records 

provided must include yield and acreage for all years used to determine the expected 

yield. Insured’s approved APH records must be provided for commodities covered with 

an underlying policy authorized by the Act.

The same commodity by rate code may have different expected values or expected yields based 

on practices, types or varieties, markets, planting seasons, or other reasons (see below).

(2) Methods for Determining Expected Yields

The expected yield of the commodity listed on the FOR and the Expected Value and Yield 

Source Document Certification Worksheet is the yield that the insured can expect to produce 

on their farm operation under normal growing conditions, as determined by the insured’s 

entire farm operation’s production history or other data sources. If yields for a commodity on 

different parts of the operation are expected to differ, use a weighted average yield, and 

document the entire commodity by rate code. The yield reported on your FOR must reflect:

(a) the yield the insured can expect to produce on their entire farm operation;

(b) for the first year of insurance (new insureds) any damage to the commodity that 

occurred prior to the beginning of the insurance period;

(c) any change in practice (e.g., adding drip irrigation, removing irrigation, or beginning 

production of certified organic commodities) or production method used during the 

insurance period; and

(d) in the case of perennials consider:

(i) 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. 
October 2022 FCIC-18160-1 191

Exhibit 18 Expected Value and Yield Guidelines (Continued)

C. Expected Yield (Continued)

(ii) when perennial commodities with underlying coverage under another FCIC 

policy have insurable tree or vines that were planted/set out, grafted, or 

dehorned in the orchard, vineyard, grove, or bog and insured reports a yield 

greater than the average yield for the underlying coverage. Blocks where 

expected yields are adjusted from what is reported on the underlying coverage 

due to planting, grafting, dehorning, etc. should be recorded on the Expected 

Value and Yield Source Document Certification Worksheet separately. Refer to 

Paragraph 22. 

(iii) any alternate bearing or downward trending tendencies of the insured 

commodity.

(iv) when an insured’s underlying FCIC policy is not reported by variety or varietal 

group, the expected yield based on the average approved yield must be 

reflective of the specific varieties insured under the WFRP policy.

Important: 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.

(3) The following table provides the methods and sources for determining and reviewing expected 

yields for commodities:

(a) IF THE COMMODITY is insured by another policy offered under the Act that provides 

individual yield or ARH coverage in the county where the commodity will be produced; 

(i) AND THE INSURED: 

(A) cannot provide detailed documentation based on their past production 

practices and any changes to the production practices during the 

insurance period the AIP agrees demonstrates a higher or lower expected 

yield; or

(B) has produced the commodity in years prior to the first year of your 

whole-farm history period and the AIP agrees the years prior to your 

whole-farm history period does reflect the yield the insured can expect to 

produce during the insurance period. 

(ii) THEN THE EXPECTED YIELD will be that policy’s average (simple or weighted) 

approved yield for all units (by practice/type/variety) on the farm’s policy 

offered under the Act, whether planted or not, that provides individual yield 

coverage.
October 2022 FCIC-18160-1 192

Exhibit 18 Expected Value and Yield Guidelines (Continued)

C. Expected Yield (Continued)

(b) IF THE COMMODITY is insured by another policy offered under the Act that provides 

individual yield or ARH coverage in the county where the commodity will be produced, 

AND THE INSURED provides detailed documentation based on their past production 

practices and any changes to the production practices during the insurance period the 

AIP agrees demonstrates a higher or lower expected yield, THEN THE EXPECTED YIELD 

may be based on the expected yield determined by the AIP to be appropriate based on 

the provided documentation and the average yields produced under the new 

production practice approved by the AIP.

Note: Actual yield data under the new practice must be provided and serve as 

the base for the expected yield. 

(c) IF THE COMMODITY is insured by another policy offered under the Act that provides 

individual yield or ARH coverage in the county where the commodity will be produced, 

AND THE INSURED has produced the commodity in years prior to the first year of your 

whole-farm history period and the AIP agrees the years prior to your whole-farm history 

period do not reflect the yield the insured can expect to produce during the insurance 

period, THEN THE EXPECTED YIELD may be an expected yield, as determined by the AIP, 

using all years within the whole-farm history period, including the lag year, if available 

when the IFOR is submitted.

(d) IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy, 

the insured must complete a Yield and Revenue Report for the commodity. The Yield 

and Revenue Report must:

(i) Be submitted on or before the SCD for commodities reported on the IFOR or at 

the time they submit their RROR for commodities added to their farm operation 

after the SCD; and

(ii) Contain a continuous record of production history of the commodity beginning 

with the most recent year for a maximum of four years preceding the insurance 

period, including the lag year. 

(e) IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy; 

(i) AND:

(A) the commodity has been produced on the insured’s farm operation 

during the whole-farm history period, including the lag year; 

(B) the insured has at least four years of production history of the 

commodity in their whole-farm history period, including the lag year; and

(C) the insured certifies and/or provides yield records for all four years 

preceding the insurance period, including the lag year. 
October 2022 FCIC-18160-1 193

Exhibit 18 Expected Value and Yield Guidelines (Continued)

C. Expected Yield (Continued)

(ii) THEN THE EXPECTED VALUE will be the average yield produced on the insured’s 

farm operation during the four years preceding the insurance period, including 

the lag year, if available when the IFOR is submitted.

(f) IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy;

(i) AND:

(A) the commodity has been produced on the insured’s farm operation;

(B) the insured cannot certify and/or provide at least four years of 

production history for the four years preceding the insurance year, 

including the lag year; and

(C) the insured certifies and/or provides yield records for the lag year, if 

available when the IFOR is submitted, or at least one consecutive year 

starting with the most recent year in the four years the commodity was 

produced, immediately preceding the lag year. 

(ii) THEN THE EXPECTED VALUE will be based on the average yield produced on the 

insured’s farm operation for the four years preceding the insurance period, as 

determined by the AIP using the certified and/or provided yield records for 

production history: 

(A) for the lag year; and

(B) for the remaining year(s) of the four years preceding the insurance year 

the insured cannot certify and/or provide yield records, a replacement 

yield will be entered using the most applicable following source for the 

insured’s farm operation: 

1 FCIC published transitional yields in the county or nearest county 

with similar agronomic conditions to the county where 

commodity will be produced;

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.
October 2022 FCIC-18160-1 194

Exhibit 18 Expected Value and Yield Guidelines (Continued)

C. Expected Yield (Continued)

(g) IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy;

(i) AND:

(A) the commodity has been produced on the insured’s farm operation;

(B) the insured is a carryover insured;

(C) the expected yield of the prior year’s policy was determined using a 

replacement yield and available certified and/or yield records; and

(D) the insured does not certify and/or provide yield records for any year 

after they previously certified and/or provided yield records for the most 

recent years within the four years preceding the insurance year, including 

the lag year. 

(ii) THEN THE EXPECTED YIELD will be based on the average yield produced on the 

insured’s farm operation for the four years preceding the insurance period, as 

determined by the AIP:

(A) using the previously certified and/or provided yield records for 

production history for the most recent years within the four years 

preceding the insurance year, including the lag year;

(B) using a replacement yield from the most applicable following sources, for 

the insured’s farm operation, for each year prior to the first year the 

insured first certified or provided yield records for production history for 

the most recent four years preceding the insurance year, including the lag 

year:

1 FCIC published transitional yields in the county or nearest county 

with similar agronomic conditions to the county where 

commodity will be produced;

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; and
October 2022 FCIC-18160-1 195

Exhibit 18 Expected Value and Yield Guidelines (Continued)

C. Expected Yield (Continued)

(C) using a zero yield for each year after the insured previously certified 

and/or provided yield records for the most recent year(s) within the four 

years preceding the insurance year for each year the insured produced 

the commodity, including the lag year.

(h) IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy;

(i) AND:

(A) the commodity has been produced on the insured’s farm operation;

(B) the insured is a carryover insured;

(C) the expected yield of the prior year’s policy was determined solely using 

a replacement yield; and

(D) the insured does not certify and/or provide yield records for the lag year 

if the commodity was produced. 

(ii) THEN THE EXPECTED YIELD will be based on the average yield produced on the 

insured’s farm operation for the four years preceding the insurance period, as 

determined by the AIP:

(A) using a replacement yield for the years prior to the lag year from the 

most applicable following sources, for the insured’s farm operation:

1 FCIC published transitional yields in the county or nearest county 

with similar agronomic conditions to the county where 

commodity will be produced;

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; and

(B) using a zero yield for the lag year.
October 2022 FCIC-18160-1 196

Exhibit 18 Expected Value and Yield Guidelines (Continued)

C. Expected Yield (Continued) 

(i) IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy;

(i) AND:

(A) the insured is not a carryover insured; and

(B) the commodity has not been produced on the insured’s farm operation; 

or

(C) has been produced and the insured cannot certify and/or provide any 

yield records for the production history for most recent years within the 

four years preceding the insurance year, including the lag year. 

(ii) THEN THE EXPECTED VALUE will be based on the replacement yield, as 

determined by the AIP, obtained from the most applicable following sources for 

the insured’s farm operation:

(A) FCIC published transitional yields in the county or nearest county with 

similar agronomic conditions to the county where commodity will be 

produced;

(B) Yields published or used by other USDA programs (e.g., yields used to 

establish NAP coverage); or

(C) Yield information provided by participants in the Cooperative Extension 

System, or a successor organization that does not include:

1 university yield trial data; or

2 crop budget reports.

(j) IF THE COMMMODITY is not insured under an individual yield or ARH coverage policy, 

AND an expected value cannot be established, THEN THE EXPECTED VALUE will be zero.

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:
October 2022 FCIC-18160-1 197

Exhibit 18 Expected Value and Yield Guidelines (Continued)

D. Expected Value and Yield Corrections (Continued)

(i) includes post-production expenses; or

(ii) is significantly different (at least 10 percent) from the other prices received for 

the commodity in the local market where the commodity is sold, and the insured 

cannot demonstrate the price difference is due to an insured COL.

Important: The 10 percent tolerance does not apply at the time the expected value is 

determined. Refer to Subparagraph (A). 

(b) a yield consistent with the amount the insured can expect to produce on their farm 

operation if the yield:

(i) reported is significantly different (at least 10 percent) from other yields in the 

county where the commodity is produced or the insured’s other yields for the 

commodity; and

(ii) the insureds cannot provide a valid agronomic basis for the difference in yields.

Important: The 10 percent tolerance does not apply at the time the expected yield is 

determined. Refer to Subparagraph (A). 

(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 RFOR to reflect the correct information and the insured’s amount of insurance, 

premium, and any indemnity will be based on the modified report. Otherwise, Section 15(j) of 

the WFRP policy will apply.

Important: A simple statement from the insured stating the error or omission was 

inadvertent is not sufficient to prove the error or omission was inadvertent.
October 2022 FCIC-18160-1 198

Exhibit 19 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
October 2022 FCIC-18160-1 199

Exhibit 20 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