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24-MF-WFRP

(Released August 2023) UNITED STATES DEPARTMENT OF AGRICULTURE

FEDERAL CROP INSURANCE CORPORATION

MICRO FARM PILOT PROVISIONS

If you meet the eligibility requirements at the sales closing date and you elect to purchase coverage under these Micro Farm 

provisions, these provisions will be attached to and made part of the Whole-Farm Revenue Protection provisions (WFRP), 

subject to the terms and conditions described herein. If a conflict exists among the policy provisions the order of priority is 

as follows: (1) the Special Provisions; (2) these Micro Farm provisions; and (3) the Whole-Farm Revenue Protection 

provisions with (1) controlling (2) etc. Unless otherwise specified in the Special Provisions or these Micro Farm provisions,

all provisions of the WFRP apply.

1. Definitions

Carryover insured - In addition to the definition in 

WFRP, coverage the previous crop year must have 

included Micro Farm coverage to qualify as a carryover 

insured under these Micro Farm provisions.

Commodity code - In lieu of the definition in WFRP, all 

agricultural commodities on your farm operation are 

designated under a single code for micro farms.

Consolidated sales records - Contemporaneous 

records that document the sale of commodities by your 

farm operation. You must provide the

contemporaneous records used to determine allowable 

revenue on the Schedule F farm tax form.

Whole-farm history period - In lieu of the definition in 

WFRP, the whole-farm history period is the series of

consecutive tax years prior to the policy year, with a 

minimum of three years and a maximum of five years

(including the lag year).

2. Micro Farm Eligibility

(a) To be eligible for insurance under these Micro 

Farm provisions you must have at least three years 

of consecutive tax records, including the lag year; 

and

(1) Your farm operation must have an approved

revenue of $350,000 or less; or

(2) If you are a carryover insured, your farm 

operation must have an approved revenue of 

$400,000 or less.

(b) If you no longer meet the eligibility requirements 

under section 2(a) of these Micro Farm provisions 

after the sales closing date, your approved revenue 

will be capped at $350,000 for the purpose of 

calculating your coverage, or $400,000 if you are a 

carryover insured, and all revenue will be 

considered revenue-to-count.

3. Required Reports

(a) When providing your sales records, you must 

provide a total value for the commodities reported 

on your farm operation which comprises a 

complete record of revenue generated from 

insurable commodities.

(b) In lieu of section 15(e) of WFRP, replant payments 

are not available under these Micro Farm 

provisions.

(c) In lieu of section 15(h) of WFRP, the provisions 

relating to special circumstances do not apply 

under these Micro Farm provisions, except:

(1) The provisions relating to industrial hemp 

contained in section 50 of WFRP are still 

applicable; and

(2) The provisions relating to expanding 

operations contained in section 49 of WFRP 

are still applicable, as modified by section 9 of 

these Micro Farm provisions.

4. Whole-Farm History Report

(a) In addition to section 16(a) of WFRP, on or before 

the sales closing date for each policy year, if you 

have not filed farm tax forms with the IRS for the 

lag year, you must provide a completed Substitute 

Schedule F Worksheet and Allowable Revenue 

Worksheet reflecting the revenue earned by your 

farm operation during that tax year.

(b) In lieu of section 16(c) of WFRP, if you have four 

years of tax records in your whole-farm history 

period your average allowable revenue will be 

calculated as follows:

(1) Sum the allowable revenue from each year in 

your whole-farm history period;

(2) Determine the lowest allowable revenue from 

the four years of tax records in your whole-farm 

history period;

(3) Add the result of clause (1) to the result of 

clause (2); and 

(4) Divide the result of clause (3) by 5, or by 4 if 

you have chosen to exclude a year under 

16(c)(5) of WFRP.

(c) In lieu of section 16(c) of WFRP, if you have three 

years of tax records in your whole-farm history 

period your average allowable revenue will be 

calculated as follows:

(1) Sum the allowable revenue from each year in 

your whole-farm history period;

(2) Determine the lowest allowable revenue from 

the three years of tax records in your wholefarm history period and multiply the amount by 

2;

(3) Add the result of clause (1) to the result of 

clause (2); and
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(4) Divide the result of clause (3) by 5, or by 4 if 

you have chosen to exclude a year under 

section 16(c)(5) of WFRP.

(d) To qualify for indexing under section 16(d) of 

WFRP, you must provide five years of farm tax 

forms for your whole-farm history period, including 

a Substitute Schedule F for the tax year 

immediately prior to the insurance year.

5. Farm Operation Report and Expected Value

(a) In lieu of the provisions relating to expected value 

and expected yield in section 18 of WFRP, 

individual commodities on your farm operation are 

not required to have separate expected values or

expected yields.

(b) For the purposes of section 18(e)(2) and 22(b)(2) 

you may use consolidated sales records for the 

commodities insured under these Micro Farms 

provisions. Three years of sales records are 

required.

(c) You may certify the sales records, but upon our 

request you must provide these sales records that 

comprise a complete marketing record of 

commodities on your farm operation.

(d) When certifying your sales records, you must also 

certify your total planted acres (or other unit of 

measure as applicable) over that same three-year 

period so an “expected value” per method of 

establishment can be calculated. You must have 

acceptable verifiable records to support the acres 

(or other unit of measure as applicable) you certify. 

Upon our request, you must provide those records 

to us.

(e) When completing your Final Farm Operation 

Report, you must provide a total value for the 

insurable commodities on your farm operation.

(f) The expected value of commodities on your farm 

operation will be based on the average allowable 

revenue from all commodities on your farm 

operation for a minimum of the three years

immediately prior to the insurance period, building 

up to a maximum of five years. If you have provided 

five years of allowable revenue you may select one 

of the five years to exclude when calculating the 

expected value of commodities on your farm 

operation.

(g) If market conditions, commodity mixtures, or 

production capacity used to produce commodities 

on your farm operation have changed such that the 

total revenue generated on your farm operation is 

expected to be lower than that of those years used 

to calculate the expected value of commodities on 

your farm operation, the expected value of 

insurable commodities will be reduced to reflect 

market conditions, commodity mixtures, or 

production capacity for the insurance year.

6. Your Commodity Count and Diversification 

Discount

(a) In lieu of section 19(c) of WFRP, a commodity 

count is not calculated under these Micro Farm 

provisions. For purposes of diversification discount 

and associated premium subsidy, these are based 

on the WFRP count of three commodities unless 

otherwise denoted in the Actuarial Documents.

(b) In lieu of section 9(c)(1) of WFRP, you qualify for 

all available coverage levels.

(c) In lieu of section 14(b)(6) of WFRP, a diversification 

discount is not calculated under these Micro Farm 

provisions. Your diversification discount is 0.523 for 

the purpose of calculating your premium.

7. Post-Production and Added Value

(a) In lieu of section 10(b)(1) of WFRP, revenue 

generated from post-production operations may be 

included in allowable revenue.

(b) Revenue from sources other than insurable 

commodities (e.g., bottled water or souvenir sales 

through a farm stand) and the cost of commodities 

purchased for resale must be removed when 

determining your expected revenue.

8. Other Insurance

(a) In lieu of section 30(b) of WFRP, other FCIC 

insurance policies purchased at an additional 

coverage level will not be considered primary 

insurance:

(1) You will not receive an adjustment to your 

insured revenue for premium calculation 

purposes under section 14(c); and 

(2) Indemnities from such policies will not be 

considered revenue to count when calculating 

an indemnity under these Micro Farm 

provisions.

(b) Indemnities from other FCIC insurance policies will 

not be included as revenue-to-count when 

calculating your claim unless total payments from 

all other insurance programs exceed the deductible 

of your Micro Farm coverage in accordance with

section 30(d) of the WFRP provisions.

9. Expanding Operations

(a) Only the addition of production capacity during the 

insurance period may be considered when 

calculating your expanding operation factor.

(b) In lieu of section 49(d) of the WFRP policy, your 

expanding operation factor will be calculated by

dividing the total production capacity in use during 

the insurance period by the highest production 

capacity in use during any year in your whole-farm 

history period (section 49(a)(4) of the WFRP policy 

will still apply if you have also made physical 

reductions to your production capacity).