United States 

Department of

Agriculture

Federal Crop

Insurance

Corporation

FCIC-18160 (12-2021)

WHOLE-FARM 

REVENUE 

PROTECTION 

PILOT 

HANDBOOK

2022 and Succeeding Policy 

Years

December 2021 FCIC-18160 TP1

RISK MANAGEMENT AGENCY

KANSAS CITY, MO 64133

TITLE: WHOLE-FARM REVENUE 

PROTECTION PILOT HANDBOOK

NUMBER: FCIC-18160

EFFECTIVE DATE:

2022 Succeeding Policy Years

ISSUE DATE: December 17, 2021

SUBJECT:

Provides the procedures and 

instructions for the Whole-Farm 

Revenue Protection program.

OPI: Product Administration and Standards Division

APPROVED:

/s/ John W. Underwood for

Deputy Administrator for Product Management

REASONS FOR ISSUANCE

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

where information has been removed.

1. Throughout the handbook, added language regarding the applicability of Micro Farm where 

necessary.

2. Subparagraph 3A – Added a Micro Farm example for record retention requirements.

3. Subparagraph 21(5) – Added additional eligibility language applicable to Micro Farm.

4. Paragraph 22 – Added applicability of the PAW to commodities insured under Micro Farm.

5. Subparagraph 23(13) – Added language addressing the cancellation of the WFRP policy if the 

insured elects coverage under the Micro Farm Provision for the current policy year.

6. Subparagraph 41(8) – Added language clarifying commodity count calculations are not 

applicable to Micro Farm.

7. Subparagraph 41(9) – Renumbered due to additional language in subparagraph 41(8).

8. Subparagraph 42(1)(e) – Added language clarifying buy-up coverage requirement for other 

insurance authorized under the Act is not applicable to Micro Farm, as other insurance is not 

allowed.

9. Paragraph 43 – Renumbered and added language clarifying replant payments are not allowed 

under Micro Farm.

10. Subparagraph 44(2)(e) – Added language clarifying post-production and value added to 

commodity revenue may be included as allowable revenue for Micro Farm.

11. Subparagraph 44(7)(a) & (b) – Added exceptions for when post-production and value added to 

commodity revenue may be included as allowable revenue for Micro Farm.

12. Subparagraph 44(7)(k) – Added language clarifying what revenue is excluded as allowable 

revenue for Micro Farm.
December 2021 FCIC-18160 TP2

REASONS FOR ISSUANCE (Continued)

13. Subparagraph 46(2) – Added example clarifying the whole-farm history period from Micro Farm.

14. Subparagraph 48(2) – Renumbered (d) through (n) due to duplicate letters within.

15. Subparagraph 48(8) – Added language clarifying that commodities can only be listed under the 

Micro Farm commodity code for Micro Farm.

16. Subparagraph 49(11) – Added language regarding the capping of approved revenue at RFOR

time for Micro Farm.

17. Subparagraph 51A(2) – Added record requirements (consolidated sales records) for Micro Farm.

18. Subparagraph 51B(2)(c)(iii) – Added reference for Micro Farm expected value calculations.

19. Subparagraph 71A(1) – Added example clarifying the whole-farm history period for Micro Farm.

20. Subparagraph 71A(4) & (5) – Added Simple Average Revenue calculations for persons electing 

Micro Farm with three and four years (respectively) of tax records.

21. Subparagraph 71H(2) – Added procedure for determining approved revenue for Micro Farm.

22. Subparagraph 95(2)(f) – Added language clarifying replant payments will not be paid for Micro 

Farm.

23. Subparagraph 102B(1) & (2) – Corrected the procedure for prepaid expense adjustments due to a 

misinterpretation of previous language used in the creation of these procedures. The new 

language follows the example provided in 102D.

24. Subparagraph 103C(4) – Added language stating the expense reduction factor will equal 1.000 

for Micro Farm claims.

25. Paragraph 147 – Added applicability language regarding ineligibility of vertically integrated 

operations for Micro Farm coverage. Deleted the definition of vertically integrated operation and 

revised language within to align with the policy definition of vertically integrated operation.

26. Part 7 Paragraph 161 – Added new Part and Paragraph for Micro Farm procedures.

27. Exhibit 2 – Revised definitions for “carryover insured,” “commodity code,” and “whole-farm 

history period.” Added a definition for “consolidated sales record” and “vertically integrated 

operation.”

28. Exhibit 5A(1)(a) & 2(a) – Added exception for Micro Farm regarding the use of “Crop Year” in 

1(a) and added applicability language related to expenses in the first required statement 2(a).

29. Exhibit 6 items 7, 10, 15, & 16 – Added procedure for whole-farm history period calculations 

and entries for Micro Farm.

30. Exhibit 10 items 10, 12, 13E, 14E, & 22 – Added procedures applicable to Micro Farm.

31. Exhibit 10, 11, and 20 – Revised rounding rules for acres to two decimal places where applicable.

32. Exhibit 15 item 9 – Added procedure regarding Micro Farm and post-production operations.

33. Exhibit 16 items 12 through 16 – Added procedure for Micro Farm expense reduction factor 

entries.

34. Exhibit 18A(3) – Added expected value procedures for Micro Farm and renumbered.
December 2021 FCIC-18160 TP3

REASONS FOR ISSUANCE (Continued)

35. Exhibit 20 Part 3 – Added procedures for Micro Farm and updated example form.
December 2021 FCIC-18160 TP4

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK

CONTROL CHART

Whole-Farm Revenue Protection Pilot Handbook

TP 

Page(s)

TC 

Page(s)

Text 

Page(s)

Exhibit 

Number

Exhibit 

Page(s)

Date Directive Number

Remove Entire Handbook 10-2021 FCIC-18160

Current Index 1-4 1-4 1-104 1-20 105-206 12-2021 FCIC-18160

FILING INSTRUCTIONS:

This handbook replaces the 2022 Whole-Farm Revenue Protection Pilot Handbook, FCIC-18160 (10-

2021). This handbook is effective for the 2022 and succeeding policy years and is not retroactive to 

any 2021 or prior policy year determinations.
December 2021 FCIC -18160 TC1

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK

TABLE OF CONTENTS

PAGE NO.

PART 1 GENERAL INFORMATION AND RESPONSIBILITIES

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

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

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

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

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

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

7 Accounting Methods ..............................................................................................................8

8-20 (Reserved)

PART 2 WFRP POLICY INFORMATION

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

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

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

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

25-40 (Reserved)

PART 3 COVERAGE AND REPORTS

Section 1 Coverage Information and Required Reports

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

42 Coverage Levels...................................................................................................................20

43 Replant Payments.................................................................................................................21

44 Allowable Revenue and Allowable Revenue Worksheet.....................................................21

45 Allowable Expenses and Allowable Expenses Worksheet ..................................................24

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

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

48 Intended Farm Operation Report..........................................................................................28

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................41

52 WFRP Database....................................................................................................................44

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

54-70 (Reserved)

Section 2 Revenue and Expense Calculations

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

72 Expenses...............................................................................................................................59

73 Inventory...............................................................................................................................61

74 Accounts Receivable, Payable, and Prepaid Expenses Report.............................................63

75-90 (Reserved)
December 2021 FCIC -18160 TC2

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK

TABLE OF CONTENTS

PAGE NO.

PART 4 LOSS AND CLAIM INFORMATION

Section 1 Loss Information

91 Insurable Losses ...................................................................................................................66

92 Uninsurable Losses...............................................................................................................66

93 Quality Determinations ........................................................................................................69

94 Duties in the Event of Damage or Loss................................................................................69

95 Replant Payment...................................................................................................................71

96-100 (Reserved)

Section 2 Claim Information

101 Adjustments to Revenue.......................................................................................................74

102 Adjustments to Expenses......................................................................................................76

103 Changes Occurring Within Policy Year...............................................................................77

104 Changes That Occurred in Year Prior to Policy Year ..........................................................79

105 Damage and Price Fluctuation That Occurred in the Year Prior to the Policy Year............80

106 Revenue-to-Count.................................................................................................................80

107 Indemnities...........................................................................................................................82

108-120 (Reserved)

PART 5 ADMINISTRATIVE PROVISIONS

121 Assignment of Indemnity .....................................................................................................85

122 Transfer of Coverage............................................................................................................85

123 Other Insurance and NAP.....................................................................................................85

124 Commodities as Payments....................................................................................................86

125 Mediation, Arbitration, and Judicial Reviews of AIP Determinations ................................86

126 Controlled Substance Provisions..........................................................................................86

127-140 (Reserved)

PART 6 SPECIAL CIRCUMSTANCES

141 Organically Grown Commodities.........................................................................................87

142 Post-Production Operations and Market Readiness.............................................................89

143 Animals.................................................................................................................................91

144 Nursery/Greenhouse .............................................................................................................93

145 Commodities with Market Order Reserves..........................................................................96

146 Commodities Sold with Co-op Retainages...........................................................................96

147 Vertically Integrated Operations ..........................................................................................99

148 Commodities Purchased for Resale......................................................................................99

149 Industrial Hemp..................................................................................................................100

150 Combined Direct Marketing Commodities........................................................................102

151-160 (Reserved)

PART 7 MICRO FARM

161 Micro Farm.........................................................................................................................104
December 2021 FCIC -18160 TC3

WHOLE-FARM REVENUE PROTECTION PILOT HANDBOOK

TABLE OF CONTENTS

PAGE NO.

Exhibit 1 Acronyms and Abbreviations....................................................................................105

Exhibit 2 Definitions.................................................................................................................106

Exhibit 3 Method of Establishment...........................................................................................117

Exhibit 4 Unit of Measure .........................................................................................................118

Exhibit 5 Form Standards..........................................................................................................119

Exhibit 6 Whole-Farm History Report......................................................................................130

Exhibit 7 Inventory Report........................................................................................................136

Exhibit 8 Accounts Receivable, Payable, and Prepaid Expenses Report..................................141

Exhibit 9 Market Animal and Nursery Inventory Report..........................................................145

Exhibit 10 Farm Operation Report..............................................................................................152

Exhibit 11 Replant Payment Worksheet .....................................................................................163

Exhibit 12 Schedule F Example ..................................................................................................166

Exhibit 13 Substitute Schedule F Example .................................................................................168

Exhibit 14 Allowable Expenses Worksheet ................................................................................170

Exhibit 15 Allowable Revenue Worksheet .................................................................................174

Exhibit 16 Claim for Indemnity Form.........................................................................................180

Exhibit 17 Inventory Valuation Guidelines.................................................................................185

Exhibit 18 Expected Value and Yield Guidelines.......................................................................187

Exhibit 19 Direct Marketing Sales Records................................................................................202

Exhibit 20 Expected Value and Yield Source Document Certification Worksheet....................204
December 2021 FCIC -18160 TC4

THIS PAGE INTENTIONALLY LEFT BLANK
December 2021 FCIC -18160 1

PART 1 GENERAL INFORMATION AND RESPONSIBILITIES

1 General Information

A. Purpose and Objective

This handbook provides information, procedures, and instructions for administering the 

WFRP program, 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. Duration

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

D. Required to Offer

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

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

pilot policy and the procedures in this handbook.

E. Procedural Questions

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

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

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

not resolved,

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

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

Office of Deputy Administrator for Product Management

Product Administration and Standards Division

USDA—Risk Management Agency

Beacon Facility—Mail Stop 0812

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

RMA will not attempt to instruct agents or insureds of the AIP.
December 2021 FCIC -18160 2

1 General Information (Continued)

E. Procedural Questions (continued)

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

writing at the above address.

Clearly identify the error and provide a proposed correction.

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

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

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

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

handbook.

F. Other procedures

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

in this handbook.

2 Responsibilities

A. RMA PASD Responsibilities

RMA PASD will:

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

WFRP program; and

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

instructions for the WFRP program.

B. AIP Responsibilities

AIPs must:

(1) offer WFRP to all persons;

(2) provide persons insured under the WFRP policy a copy of the WFRP policy 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 D;
December 2021 FCIC -18160 3

2 Responsibilities (Continued)

B. AIP Responsibilities (continued)

(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;

(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 and expenses (if applicable) 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;
December 2021 FCIC -18160 4

2 Responsibilities (Continued)

C. Agent Responsibilities (continued)

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

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

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

D. Insured Responsibilities

The AIP must advise the insureds to:

(1) Provide complete farm tax records for each year in the five year whole-farm history 

period unless fewer years are required. Refer to subparagraph 21(1)(c)(vi) and (vii).

(2) Show additional tax records if necessary so the AIP can verify that farm taxes were 

filed. For example, if the farm operation includes a disregarded entity under IRS rules, 

the AIP may request other tax records to verify the entity information under which the 

entity’s taxes were filed.

(3) Provide the necessary information to complete their 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 includes 

actual production histories and acreages.

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

paragraph 141.

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

year. 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.
December 2021 FCIC -18160 5

2 Responsibilities (Continued)

D. Insured Responsibilities (continued)

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

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

provided must include the date such insurance was obtained.

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

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

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

3 Access to Commodities and Records

A. Record Retention

Insureds are required to retain complete verifiable records and direct marketing sales records 

for three years after the later of the:

(1) end of the insurance period; or

(2) date of final payment of the indemnity.

The record retention period applies to the records for the insurance period and all years in 

the whole-farm history period for the insurance period.

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

2022 policy year is 2016, 2017, 2018, 2019, and 2020 (2021 is a lag year and is 

not included in the 2022 whole-farm history period). Verifiable records for 

2016 through 2020, all years in the whole-farm history period, and for 2022

must be maintained for three years after the insurance period for 2022 ends or 

the date of final payment of indemnity for the 2022 policy year, whichever is 

later.

Example 2: The whole-farm history period for a late fiscal year filer for the 2022 policy 

year are tax years 2015, 2016, 2017, 2018, and 2019 (Tax year 2020 is a lag 

year and is not included in the 2022 whole-farm history period). Verifiable 

records for 2015 through 2019, all years in the whole-farm history period, and 

for 2022 (tax year 2021) must be maintained for three years after the insurance 

period for policy year 2022 ends or the date of final payment of indemnity for 

the 2022 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 2022 policy year with three years of 

tax records is 2019, 2020, and 2021. Records for 2019 through 2021, all years 

in the whole-farm history period, and for 2022 must be maintained for three 

years after the insurance period for 2022 ends or the date of the final payment 

of indemnity, whichever is later.
December 2021 FCIC -18160 6

3 Access to Commodities and Records (Continued)

A. Record Retention (continued)

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:

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

disposition of the insured commodities;

(2) insurable, insured, and uninsured acres;

(3) facilities;

(4) allowable revenue and allowable expenses (if applicable) 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 payable,

receivable, and prepaid expenses (if applicable);

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

the insured commodities; and

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

commodities.

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

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

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

maintained. Such commodities may be examined as often as reasonably necessary during 

the record retention period.
December 2021 FCIC -18160 7

3 Access to Commodities and Records (Continued)

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.

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, beginning, and ending 

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

beginning and ending dates for the IRS tax year.
December 2021 FCIC -18160 8

7 Accounting Methods

(1) Persons using the cash accounting method generally report revenue in the tax year it is 

received and deduct expenses in the tax year they are paid, even if it is not the same year 

when they were incurred. Refer to exhibit 2 for the definition of cash accounting method.

(2) Persons using the accrual accounting method generally report revenue in the tax year it is 

earned, whether it has been received yet or not, and deduct expenses in the tax year incurred, 

regardless of whether the expenses are paid yet. Accrual accounting allows the person to 

match revenue and expenses to the year in which revenue was earned.

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, Payable, and Prepaid Expenses 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 expenses (if 

applicable) will not be adjusted using the accrual accounting method.

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)
December 2021 FCIC -18160 9

PART 2 WFRP POLICY INFORMATION

21 Eligibility

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

(a) meet the qualifying person criteria provided in the WFRP policy;

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

(c) have filed a United States Federal income tax return, including farm tax forms, for

each of the 5 years in their whole-farm history period for the same tax entity and farm 

operation as the insured person for the policy year unless one of the following applies:

(i) the tax entity (taxpayer identification number) changed;

(ii) the insured stopped farming as an individual and now farms as a tax entity other 

than an individual;

(iii) the insured formed a successor farming operation that is a different tax entity but 

is basically the same operation;

(iv) the insured purchased, inherited, or leased another person’s farm operation and 

the use of the other person’s records is approved in accordance with section 

16(g) of the policy;

(v) the insured is a qualifying person that is not required to file a United States 

Federal income tax return (e.g., a tribal entity):

(A) To be eligible for insurance under this policy the insured must have filed 

reports with a disinterested third-party entity supported by verifiable 

records that the AIP agrees are sufficient to develop a Substitute Schedule 

F for each year in the whole-farm history period; and

(B) The reports used to develop the Substitute Schedule F will be considered 

the farm tax forms under this policy;

(vi) the insured did not file farm tax forms or report farm revenue for a tax year due 

to circumstances beyond their control (e.g., illness that prevented the insured

from farming for the year):

(A) The insured must provide documentation acceptable to the AIP explaining 

the circumstance for the missing year;

(B) The insured may only have one year in their whole-farm history period in 

which they did not file farm tax forms;

(C) The insured must have filed farm tax forms in the first year of their wholefarm history period, unless they are a carryover insured; and
December 2021 FCIC -18160 10

21 Eligibility (Continued)

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

(vii) the insured qualifies as a BFR or 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 2022 policy year. To be 

eligible for a 2022 WFRP policy, the producer must have farm tax 

records for 2018, 2019, and 2020. The producer must have also 

earned farm revenue in 2021.

Example 2: A producer would have qualified as a VFR in the 2021 policy year. 

To be eligible for a 2022 WFRP policy, the producer must have

farm tax records for 2017, 2018, 2019, and 2020. The producer 

must have also earned farm revenue in 2021.

(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:
December 2021 FCIC -18160 11

21 Eligibility (Continued)

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

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

provided;

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

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

premium.

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

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

and a new application is required.

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

(a) at SCD the insured revenue for the policy year is greater than $8.5 million based on 

the 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.
December 2021 FCIC -18160 12

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 $100,000 or less for their first year of coverage 

or $125,000 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 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:
December 2021 FCIC -18160 13

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 10.

(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 preacceptance inspections.

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

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

SCD is extended to the next business day.

Example for Calendar Year Filer: A producer’s tax year is January 1, 2022 -

December 31, 2022. The producer’s application 

and all applicable forms must be submitted on or 

prior to the SCD that falls in 2022.

Example for an Early Fiscal Year Filer: A producer’s tax year is August 1, 2022 - July 31, 

2023. The producer’s application and all 

applicable forms must be submitted on or prior to

the SCD that falls in 2022.

Example for a Late Fiscal Year Filer: A producer’s tax year is September 1, 2021 -

August 31, 2022. The producer’s application and 

all applicable forms must be submitted on or prior 

to November 20, 2021, SCD for the 2022 policy 

year.
December 2021 FCIC -18160 14

23 Application (Continued)

(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 and expense 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;

(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 and allowable expenses the AIP 

determines to be correct for each year in the insured’s whole-farm history period.
December 2021 FCIC -18160 15

23 Application (Continued)

(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 (12), if the insured is a carryover insured, the AIP will cancel 

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

completed 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.

25-40 (Reserved)
December 2021 FCIC -18160 16

PART 3 COVERAGE AND REPORTS

Section 1 Coverage Information and Required Reports

41 Basic Information and Commodity Count

(1) Only the insured’s allowable revenue is insurable. Insurance does not extend to any person, 

including any person having a share in the revenue from commodities produced or 

purchased for resale during the insurance period.

(2) The commodity count is based on the number of commodities on the farm operation, or 

intended commodities the insured plans to have on their farm operation, with expected 

revenue equal to or greater than their qualifying revenue threshold and is used to determine:

(a) The highest coverage level the insured’s farm operation qualifies for;

(b) The diversification discount the insured will receive; 

(c) Eligibility for WFRP coverage if the insured raises potatoes or has commodities with 

other available revenue coverage; and

(d) The insured’s subsidy amount.

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

(a) Determine the number of commodities on the farm or intended commodities the 

insured plans to produce on their farm operation. Each separate commodity code

(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;

(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;
December 2021 FCIC -18160 17

41 Basic Information and Commodity Count (Continued)

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

the Total Expected Revenue;

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

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

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

Example 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) x 0.333 = .056} x $170,250 = $9,534] 

Round to 3 decimals after each calculation.

The expected revenue for each commodity is: 

$93,750 for corn;

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

$50,000 for pigs;

$9,000 for carrots; 

$6,000 for cucumbers; and

$2,000 for squash.

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

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

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

commodities (nursery (mums and geraniums)), carrots, cucumbers, and squash) 

to meet the qualifying revenue threshold. The combined revenue for the 

nursery ($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).

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) x 0.333 = .167} x $143,750 = $24,006] 

Round to 3 decimals after each calculation.
December 2021 FCIC -18160 18

41 Basic Information and Commodity Count (Continued)

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.

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.
December 2021 FCIC -18160 19

41 Basic Information and Commodity Count (Continued)

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 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.

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.
December 2021 FCIC -18160 20

41 Basic Information and Commodity Count (Continued)

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 SP;

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

Exception: Insureds cannot increase their coverage level if any cause of loss that 

would reduce the allowable revenue for the policy year is evident prior to 

the request to change coverage levels.

(e) must select a buy-up coverage level for 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.

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.
December 2021 FCIC -18160 21

42 Coverage Levels (Continued)

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 SPs. 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 5 and 15 for required elements 

with descriptions and examples of the Allowable Revenue Worksheet.

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

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

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

revenue from CCC loans forfeited);

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

Schedule F.);

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

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

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

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:

(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); and

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

to paragraph 161.
December 2021 FCIC -18160 22

44 Allowable Revenue and Allowable Revenue Worksheet (Continued)

(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.

(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;
December 2021 FCIC -18160 23

44 Allowable Revenue and Allowable Revenue Worksheet (Continued)

(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;

(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.
December 2021 FCIC -18160 24

45 Allowable Expenses and Allowable Expenses Worksheet

The following procedures in paragraph 45 are not applicable to Micro Farm.

(1) On or before the SCD, an Allowable Expenses Worksheet must be completed for each year 

in the whole-farm history period and the lag year for qualifying persons with less than five 

years in the whole-farm history period. Refer to exhibits 5 and 14 for required elements 

with descriptions and examples of the Allowable Expenses Worksheet.

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

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

expenses.

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

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

records.

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

purposes will be limited to the following expenses:

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

(b) car and truck expenses;

(c) chemicals;

(d) conservation expenses;

(e) custom hire (machine work);

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

only the amount of depreciation allowed for animals and supported by verifiable 

records);

(g) feed purchased;

(h) fertilizers and lime;

(i) freight and trucking;

(j) gasoline, fuel, and oil;

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

not considered health insurance;

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

corresponding line of the Schedule F;

(m) repairs and maintenance;

(n) seeds and plants purchased;
December 2021 FCIC -18160 25

45 Allowable Expenses and Allowable Expenses Worksheet (Continued)

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

as cold and controlled atmosphere storage);

Example: Exclude storage expenses of harvested commodities and include expenses 

for inputs such as plants that are to be transplanted.

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

subparagraph (5) below;

(q) utilities;

(r) veterinary, breeding, and medicine; and

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

supported by verifiable records allowed for reporting by the IRS). 

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

have an insurable interest.

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

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

farm tax forms.

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

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

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

from the expenses reported as “supplies purchased” or “labor hired” (both 

allowable expenses).

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

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

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

not have to be removed from the expenses reported as “supplies purchased” or 

“labor hired” (both allowable expenses).

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

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

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

processing facility are significant costs for these commodities and therefore, do 

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

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

the field. These costs must be removed from the allowable expenses.
December 2021 FCIC -18160 26

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 and allowable expenses (if applicable) calculated on the Allowable 

Revenue and Allowable Expenses Worksheets in paragraphs 44 and 45 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 

2022 policy year is 2016, 2017, 2018, 2019, and 2020. Tax year 2021 is the

lag year and is not included in the 2022 whole-farm history period, except for a

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

Example 2: The whole-farm history period for a late fiscal year filer for the 2022 policy 

year are tax years 2015, 2016, 2017, 2018, and 2019. Tax year 2020 is a lag 

year and is not included in the 2022 whole-farm history period, except for a 

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

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

Micro Farm for the 2022 policy year with three years of tax records is 2019, 

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

and with five years of tax records is 2017, 2018, 2019, 2020, and 2021.

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

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

71;

(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; and

(d) average allowable expenses (if applicable). Refer to paragraph 72.

Refer to exhibits 5 and 6 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. Allowable Revenue and Allowable Expenses

Worksheets (if applicable) will need to be completed for each tax year. Refer to paragraph 

51 for more information about required farm tax forms and verifiable information.
December 2021 FCIC -18160 27

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

(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 allowable expenses, and the 

allowable revenue and allowable expenses of the other person for the applicable 

tax years; and

(iv) verifiable documentation that:

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

applicant/insured and added to their farm operation;

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

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

the applicant/insured obtained; and

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

(i) verifiable documentation that supports the income and expenses on the tax 

return(s) of the other person; and
December 2021 FCIC -18160 28

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

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

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

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

(a) all requirements in the policy and subparagraph (1) are met; and

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

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

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

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

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

information.

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

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

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

applicable year; or

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

modified to reflect only the approved allowable revenue and allowable expenses of the 

applicant/insured for each applicable year.

48 Intended Farm Operation Report

(1) The 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 10 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 2022 is August 31, 2021. An insured may submit an IFOR on or after 

September 1, 2021, for the 2022 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.
December 2021 FCIC -18160 29

48 Intended Farm Operation Report (Continued)

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

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

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

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

Expected Value and Yield Source Document Certification Worksheet. Refer to 

exhibit 20.

(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.

(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 and Expenses (if applicable) 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.
December 2021 FCIC -18160 30

48 Intended Farm Operation Report (Continued)

(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 x $150.00 = $600 x 7.0 acres = $4,200 x .500 share = 

$2,100 Total Expected Revenue.

Refer to exhibit 10 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.
December 2021 FCIC -18160 31

48 Intended Farm Operation Report (Continued)

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

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

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

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

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

on the 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;

(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.
December 2021 FCIC -18160 32

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.

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 20.
December 2021 FCIC -18160 33

49 Revised Farm Operation Report (Continued)

(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 1 

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

these numbers will be carried forward to the RFOR.

(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 49(1)(b) for limitations on Revised Farm Operation revisions.

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

to enter on the RFOR. Refer to exhibit 10 for example of FOR submitted at required 

reporting date and revised during the insurance period.

IF an intended

commodity on 

SCD is ...

AND ... THEN ...

planted, 

produced, or 

purchased for 

resale, at the 

time the RFOR

is submitted

no changes are made,

and the intended report is 

still correct as to what is 

being produced and what 

was purchased for resale

The numbers pertaining to the quantity 

planted, produced, or purchased for resale 

and expected revenue from the IFOR are 

carried forward to the RFOR.

Refer to Example 1 below.

not planted, 

produced, or 

purchased for 

resale at the 

time the RFOR 

is submitted

the insured still intends 

to plant, produce, or

purchase for resale, the 

same amount of the 

commodity in the 

insurance period

the insured does not 

intend to plant, produce, 

or purchase for resale all 

of the commodity due to 

a farm management 

decision or an uninsured 

cause of loss

Do not carry forward any information 

regarding the commodity not planted, 

produced, or purchased for resale. 

Refer to Example 2 below.
December 2021 FCIC -18160 34

49 Revised Farm Operation Report (Continued)

IF an intended 

commodity on 

SCD is ...

AND ... THEN ...

not planted, 

produced, or 

purchased for 

resale at the 

time the RFOR 

is submitted

(continued)

the insured intends to 

plant, produce, or 

purchase for resale only 

a portion of the 

commodity due to a farm 

management decision or 

an uninsured cause of 

loss

(1) the actual quantity of the commodity to be 

planted, produced, or purchased for resale 

is entered on the RFOR; and

(2) the expected revenue is calculated using 

the quantity from (1) and entered in the 

Total Expected Revenue column on the 

RFOR.

Refer to Example 2 below.

planted, 

produced, or 

purchased for 

resale, at the 

time the RFOR

is submitted

changes were made to 

the quantity planted, 

produced, or purchased 

for resale due to farm 

management decisions

not planted at 

the time the 

RFOR is 

submitted

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.

(1) the quantity of the planted acreage to the 

intended commodity plus any acreage not 

planted due to insured causes and not 

replaced, collectively not to exceed the 

intended acreage of the commodity, 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 not planted due to 

insured causes will be replaced with a 

replacement commodity:

(2) the actual quantity of the acreage of the 

intended commodity not planted due to 

insured causes and replaced is entered in 

the “Actual Quantity” column of the 

RFOR for the commodity;

(3) the quantity and expected revenue of the 

replacement commodity, with expected 

value calculated as of the date the Revised 

Farm Operation is submitted, is entered in 

the “Actual Quantity” and “Expected 

Revenue” columns, respectively, of the 

RFOR for the replacement commodity;
December 2021 FCIC -18160 35

49 Revised Farm Operation Report (Continued)

IF an intended 

commodity on 

SCD is ...

AND ... THEN ...

not planted at 

the time the 

RFOR is 

submitted

(continued)

(4) the expected revenue of the acreage in 

item 2 is reduced by the expected revenue 

of the replacement commodity, and the 

reduced amount, if not less than zero, is 

entered in the “Expected Revenue” 

column of the 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 2 if expected revenue 

is reduced to zero or less; and

(5) the expected revenue of the replacement 

commodity is entered in full along with

the acres/head, etc., of the replacement 

commodity. The expected value of the 

replacement commodity will be as of the 

date the commodity was planted or 

purchased for further growth or purchased 

for resale.

Refer to Example 3 below.

planted but was 

damaged prior 

to harvest and 

prior to the time 

the RFOR is 

submitted

(1) the AIP verifies that 

the failure to produce 

or the damage was 

due to an insured 

cause of loss; and

(2) the intended 

commodity will not 

be replaced by a 

different commodity 

in the insurance 

period

the numbers pertaining to the quantity 

produced and expected revenue from the 

IFOR are carried forward to the RFOR.

Refer to Example 5 below.

(1) the AIP verifies 

failure to produce or 

the damage to the 

intended commodity 

was due to an 

insured or uninsured 

cause of loss; and

(1) 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:
December 2021 FCIC -18160 36

49 Revised Farm Operation Report (Continued)

IF an intended 

commodity on 

SCD is ...

AND ... THEN ...

planted but was 

damaged prior 

to harvest and 

prior to the time 

the RFOR is 

submitted

(continued)

(2) the intended 

commodity is or will 

be replaced a 

different commodity 

in the insurance 

period

(2) 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;

(3) 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; 

(4) the expected revenue of the acreage in 

item 2 is reduced by the expected revenue 

of the replacement commodity, and the 

reduced amount, if not less than zero, is 

entered in the “Expected Revenue” 

column of the RFOR for the intended 

commodity not produced (or with 

reduced production and replacement). 

Do not carry forward acres of intended 

commodity in item 2 if expected revenue 

is reduced to zero or less; and

(5) the expected revenue of the replacement 

commodity is entered in full along with 

the acres/head, etc., of the replacement 

commodity. The expected value of the 

replacement commodity will be as of the 

date the commodity was planted or 

purchased for further growth or 

purchased for resale.

Refer to Example 4 below.

Note:Any expected revenue lost due to an 

uninsured cause of loss will be 

considered RTC for claims purposes.
December 2021 FCIC -18160 37

49 Revised Farm Operation Report (Continued)

IF an intended 

commodity on 

SCD is ...

AND ... THEN ...

planted but was 

damaged prior 

to harvest and 

prior to the time 

the RFOR is 

submitted

(continued)

(1) the AIP verifies the 

damage to the 

intended commodity 

was due to an 

uninsured cause of 

loss; and

(2) the intended 

commodity was or 

was not replanted, or 

will not be replaced 

by a different 

commodity in the 

insurance period

the numbers pertaining to the quantity and 

expected revenue of the damaged intended 

commodity from the IFOR are carried 

forward to the RFOR.

Refer to Example 4 below.

Note: Any expected revenue lost due to an 

uninsured cause of loss will be 

considered RTC for claims purposes.

changed after 

the date the 

RFOR is due, 

except those 

resulting from a 

covered cause 

of loss

(1) the insured reports 

this within 30 days, 

as required after the 

change to the AIP; 

and

(2) the AIP consents that 

a revision to the 

RFOR should be 

made

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.

changed after 

the date the 

RFOR is due, 

except those 

resulting from a 

covered cause 

of loss 

(continued)

(1) The insured reports 

this within 30 days, 

as required after the 

change to the AIP; 

and 

(2) the AIP does not 

consent that a 

revision to the RFOR 

should be made.

no revisions are made to the RFOR and all 

revenue will count as RTC, even if the 

commodity is not listed on the RFOR.
December 2021 FCIC -18160 38

49 Revised Farm Operation Report (Continued)

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.

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.

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

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

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

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

time of planting. The quantity of corn planted plus those acres not planted and 

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

replacement commodity (soybeans) is added to the FOR using the expected 

value at the time of planting.
December 2021 FCIC -18160 39

49 Revised Farm Operation Report (Continued)

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

during this insurance period and submits such on the 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. 

Example 5: 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.
December 2021 FCIC -18160 40

49 Revised Farm Operation Report (Continued)

(10) The Approved Revenue cannot exceed $8.5 million divided by the coverage level elected by 

the insured. If this occurs the Approved Revenue will be capped. Any applicable 

Animal/Animal Products, Nursery/Greenhouse, or Commodities Purchased for Resale

limitations must be calculated prior to applying the Approved Revenue limit. Regardless of 

any limitation, all allowable revenue earned during the insurance period will be considered 

RTC.

Example: At the time the RFOR is due, the Approved Revenue is $12,000,000. The 

insured has elected the 85 percent coverage level. $8,500,000 divided by .85 

equals $10,000,000, so the Approved Revenue for this farm is capped at 

$10,000,000. Insured Revenue will equal $8,500,000 and all revenue earned 

during the insurance period will be considered RTC.

(11) For Micro Farm, the approved revenue cannot exceed $100,000 for a first year insured or 

$125,000 for a carryover insured. If this occurs, the Approved Revenue will be capped at 

$100,000 for a first year insured or $125,000 for a carryover insured. Regardless of this 

limitation, all allowable revenue earned during the insurance period will be considered RTC.

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.

(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.
December 2021 FCIC -18160 41

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

A. IRS Tax Forms

(1) Copies of the applicable IRS tax form(s), such as Schedule F, Form 1040, Form 1120, 

Form 1041, Form 1065, Form 1102S, and Form 4835, must be provided to the AIP for 

each tax year in the whole-farm history period.

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

the allowable revenue and allowable expenses on the WFHR when the AIP has reason 

to believe the farm tax form(s) do not provide adequate documentation of revenue or 

expenses for WFRP purposes. In such cases, the AIP must not accept any 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 and expenses (if applicable) in the same manner as provided on a Schedule F 

tax form by completing a Substitute Schedule F. The Substitute Schedule F must 

contain all information that would appear on a Federal Schedule F tax form and must 

be sufficient to complete the Allowable Revenue Worksheet and Allowable Expense 

Worksheet (if applicable). The person must use the same accounting period when 

completing the Substitute Schedule F as was used on the farm tax form they filed with 

the IRS for the applicable year.

In addition to the Substitute Schedule F, such persons must provide:

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

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

tax form was filed.

The AIP must not accept any 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.
December 2021 FCIC -18160 42

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

B. Verifiable Records (continued)

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.

(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:
December 2021 FCIC -18160 43

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

B. Verifiable Records (continued)

(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: 

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

(2) revenue per commodity received; or

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

(i) For combined direct marketing commodities, refer to paragraph 150.

(ii) For direct marketed commodities not considered a combined direct 

marketing commodity:

(1) amount of each commodity taken to market;

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

(3) amount of each commodity sold;

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

(5) revenue received for each commodity.

Refer to exhibit 19 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.
December 2021 FCIC -18160 44

52 WFRP Database

An insured’s WFRP database consists of their revenue and expense history (if applicable) for the 

five consecutive tax years prior to the tax year immediately preceding the lag year.

Example 1: The five consecutive tax years of revenue and expense history in a database for 

calendar and early fiscal year filers for the 2022 policy year are tax years 2016

through 2020. There is always a lag year before the policy year.

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

fiscal year filers for the 2022 policy year are tax years 2015 through 2019. There is 

always a lag year before the policy year.

The revenue and expense history (if applicable) for a tax year must remain in the database until 

the tax year is outside the five year whole-farm history period, or it is determined the revenue or 

expenses for a tax year must be corrected.

53 Premium Calculation and Subsidy

(1) The county with the largest amount of expected revenue on the farm is the county that 

should be listed on the application and 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)
December 2021 FCIC -18160 45

Section 2 Revenue and Expense 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 2016; 

$300,256 for 2017; $99,350 for 2018; $98,750 for 2019; and 

$215,515 for 2020. 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 2017, $86,250 for 2018, 

$85,000 for 2019; $86,500 for 2020; $91,300 for 2021. 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 2020 policy year 

due to an illness. The insured did earn farm revenue during the 2021

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

following allowable revenue: $160,360 for 2021 (lag year), $130,500 

for 2016; $149,500 for 2017; $112,000 for 2018; $139,600 for 2019. 

Insured B’s average revenue is $138,392 [($160,360 + $130,500 + 

$149,500 + $112,000 + $139,600) ÷ 5].

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

period:
December 2021 FCIC -18160 46

71 Revenue (Continued)

A. Simple Average Allowable Revenue (continued)

(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 2018-2020. 

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 2021 (lag year); $112,000 for 2018; $139,600 

for 2019; and $160,360 for 2020. The lowest allowable revenue from 

the whole-farm history period and the lag year is $112,000 (2018). 

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).

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 is $85,000 (2019). Insured D’s average revenue is $86,560

[($85,000 + $86,500 + $91,300 + $85,000 + $85,000) ÷ 5].
December 2021 FCIC -18160 47

71 Revenue (Continued)

A. Simple Average Allowable Revenue (continued)

(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 is $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:

(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 71D.
December 2021 FCIC -18160 48

71 Revenue (Continued)

B. Insurance Options (continued)

(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 wholefarm history period; and

(iii) Calculate the average allowable revenue as stated in 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

(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).
December 2021 FCIC -18160 49

71 Revenue (Continued)

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 

whole-farm history period and the allowable revenue for either of the two most recent 

tax years in the whole-farm history period must be greater than the 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 2016

(Year 1); $300,256 for 2017 (Year 2); $99,350 for 2018 (Year 3); 

$98,750 for 2019 (Year 4); and $215,515 for 2020 (Year 5). The 

following is the result of the first step in the indexed average revenue 

calculation by year.

2017 = 1.199 ($300,256 ÷ $250,500)

2018 = 0.331 ($99,350 ÷ $300,256) (cupped at .800)

2019 = 0.994 ($98,750 ÷ $99,350)

2020 = 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].

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

Example: The result is 1.325 (1.048 x 1.048 x 1.048 x 1.048 x 1.048 x 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 x 1.048 x 1.048 x 1.048 x 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 x 1.048 x 1.048 x 1.048).
December 2021 FCIC -18160 50

71 Revenue (Continued)

C. Indexed Average Revenue (continued)

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

Example: The result is 1.151 (1.048 x 1.048 x 1.048).

(g) Raise the result of step 2 to the second power. Round result to three decimal 

places.

Example: The is 1.098 (1.048 x 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 x $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 x $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 x $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 x $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 x $215,515).

(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.
December 2021 FCIC -18160 51

71 Revenue (Continued)

C. Indexed Average Revenue (continued)

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 wholefarm 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].

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 (B). 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].
December 2021 FCIC -18160 52

71 Revenue (Continued)

D. Average Allowable Revenue (continued)

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:

(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; 

and
December 2021 FCIC -18160 53

71 Revenue (Continued)

E. Expanded Operation Average Revenue (continued)

(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. 

2016 – 500 acres

2017 – 450 acres

2018 – 400 acres

2019 – 400 acres

2020 – 350 acres

2021 – 350 acres

They are requesting an expanding operation factor based on 200 

added acres in the current year (2022) 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 (2016) being their highest amount 

of production capacity within their whole-farm history period.

(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 (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.
December 2021 FCIC -18160 54

71 Revenue (Continued)

E. Expanded Operation Average Revenue (continued)

(f) For expansions not due solely to certified organic sources, the expanded 

operation adjusted revenue will be calculated using the following tables for: 

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

Step Action

1 Determine the Simple Average Allowable revenue for the 

Whole-Farm History Period. Refer to subparagraph 71A.

Example: Insured has the following allowable revenue: 

$250,500 for 2016; $300,256 for 2017; $99,350 for 

2018; $98,750 for 2019; and $215,515 for 2020. The 

insured’s simple average revenue is $192,874 

[($250,500 + $300,256 + $99,350 + $98,750 + 

$215,515) ÷ 5].

2 Add the amount of revenue from the physical expansion of the 

farm operation that will or has occurred during the current policy 

year, as determined by the AIP, to the 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)

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

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

Expanding Operation Factor.

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

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

the Expanded Operation Adjusted Revenue.

Example: $192,874 X 1.35 = $260,380
December 2021 FCIC -18160 55

71 Revenue (Continued)

E. Expanded Operation Average Revenue (continued)

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

Step Action

1 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 2016; $300,256 for 2017; $99,350 for 

2018; $98,750 for 2019; and $215,515 for 2020. The 

insured’s simple average revenue is $192,874 

[($250,500 + $300,256 + $99,350 + $98,750 + 

$215,515) ÷ 5].

2 Add the amount of revenue from the physical expansion of the 

farm operation that will or has occurred during the current policy 

year, as determined by the AIP, to the Simple Average Allowable 

Revenue.

Example: In 2021, 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).

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

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

Expanding Operation Factor.

Example: $217,874 ÷ $192,874 = 1.13

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

the Expanded Operation Adjusted Revenue.

Example: $192,874 X 1.13 = $217,948

(iii) For the subsequent policy year (2023), an expansion that occurred in the 

current policy year (2022) will be determined in accordance with (e)(ii) 

above.

Example: An expansion occurred in the current policy year 2022. The 

Whole-Farm History period for this expansion is 2016, 2017,

2018, 2019, and 2020 with 2021 being the lag year. For the 

subsequent policy year 2023, the Whole-Farm History period 

for the expansion occurring in 2022 is 2017, 2018, 2019, 

2020, and 2021 with 2022 being the lag year.
December 2021 FCIC -18160 56

71 Revenue (Continued)

E. Expanded Operation Average Revenue (continued)

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

Step Action

1 Determine the Simple Average Allowable revenue for the 

Whole-Farm History Period. Refer to subparagraph 71A.

Example: Insured has the following allowable revenue: 

$250,500 for 2016; $300,256 for 2017; $99,350 for 

2018; $98,750 for 2019; and $215,515 for 2020. The 

insured’s simple average revenue is $192,874 

[($250,500 + $300,256 + $99,350 + $98,750 + 

$215,515) ÷ 5].

2 Determine the amount of revenue from the physical expansion of 

the farm operation that will occur during the current policy year.

Example: For the current policy year, the insured has added 

500 acres to the farm operation with an additional 

$100,000 of expected revenue determined by the 

AIP.

3 Add the result of step 2 to the result of step 1. $292,874

($192,874 + $100,000)

4 Determine the amount of revenue from the physical expansion of 

the farm operation that occurred during the lag year using 

information applicable to the current policy year (i.e., expected 

values). 

Example: In 2021, the lag year, the insured added 100 acres to 

the operation which generated an additional $25,000 

of expected revenue as determined by the AIP.

5 Add the result of step 4 to the result of step 3. $317,874

($292,874 + $25,000)

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

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

Expanding Operation Factor.

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

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

the Expanded Operation Adjusted Revenue.

Example: $192,874 X 1.35 = $260,380
December 2021 FCIC -18160 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 using 

the following tables:

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.

Step Action

1 Multiply the Simple Average Allowable Revenue by 0.35.

Example 1: $35,000 ($100,000 x 0.35).

Example 2: $525,000 ($1,500,000 x 0.35)

2 Determine the greater of $500,000 or the result of step 1.

Example 1: $500,000

Example 2: $525,000

3 Add the Simple Average Allowable Revenue to the result of step 2.

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

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

4 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)

5 Add the result of step 4 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)

6 Determined the lesser of the results of steps 3 and 5.

Example 1: $200,000

Example 2: $1,850,000
December 2021 FCIC -18160 58

71 Revenue (Continued)

E. Expanded Operation Average Revenue (continued)

Step Action

7 Divide the result of step 6 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)

8 Multiply the Simple Average Allowable by the result of step 7 to determine the 

Expanded Operation Adjusted Revenue.

Example 1: $200,000 ($100,000 x 2.00)

Example 2: $1,845,000 ($1,500,000 x 1.23)

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

(a) Crop rotation, planting pattern change (excluding anything allowed in 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

(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:

(a) average allowable revenue;
December 2021 FCIC -18160 59

71 Revenue (Continued)

F. Whole-Farm Historic Average Revenue (continued)

(b) indexed average revenue (if applicable);

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

(d) 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 

$100,000 for the first year of coverage or $125,000 for a carryover insured.

72 Expenses

The procedures in paragraph 72 are not applicable to Micro Farm.

A. Average Allowable Expenses

To calculate the average allowable expenses:

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

period:

(a) sum the allowable expenses 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 expenses: $83,500 for 2016; 

$109,660 for 2017; $83,500 for 2018; $73,900 for 2019; and $110,370 for 

2020. Insured A’s average expenses is $92,186 [($83,500 + $109,660 + 

$83,500 + $73,900 + $110,370) ÷ 5].
December 2021 FCIC -18160 60

72 Expenses (Continued)

A. Average Allowable Expenses (continued)

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

period:

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

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

Note: The insured must provide their farm tax forms, and other signed tax 

forms as requested by the AIP, for the lag year not later than 60 days after 

they are filed with the IRS.

(b) sum the allowable expenses 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: Continuing with the same example in subparagraph 71A(2), insured B did 

not incur any farm expenses during the 2020 policy year due to an illness. 

The insured did incur farm expenses during the 2021 policy year which is 

considered the lag year. The insured has the following allowable expenses: 

$110,370 for 2021 (lag year); $83,500 for 2016; $109,660 for 2017; 

$83,500 for 2018; $73,900 for 2019. Insured B’s average expenses are 

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

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

period:

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

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

Note: The insured must provide their farm tax forms, and other signed tax 

forms as requested by the AIP, for the lag year not later than 60 days 

after they are filed with the IRS.

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

(c) add the result of (a) and (b) to allowable expenses that correspond to the 

allowable revenue determined in subparagraph 71A(3)(b); and

(d) divide the result of (c) by five (rounded to the nearest whole dollar).
December 2021 FCIC -18160 61

72 Expenses (Continued)

A. Average Allowable Expenses (continued)

Example: Continuing with the same example in subparagraph 71A(3), insured C is a 

VFR with three years of tax records for 2018-2020. The insured also has 

farm expenses for the 2021 policy year which is considered the lag year. 

The insured has the following allowable expenses: $109,660 for 2021 (lag 

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

revenue from above is $83,500 (2018); $83,500 for 2018; $73,900 for 

2019; and $110,370 for 2020. Insured C’s average expenses are $92,186 

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

B. Approved Expenses

To calculate the insured’s approved expenses:

(1) Divide the insured’s approved revenue by the insured’s simple average allowable 

revenue (round to three decimal places); and

(2) Multiply the result of (a) by the insured’s average allowable expenses.

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 7 and 17.

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

(a) ensure that revenue produced in previous years is removed from the current year’s 

approved revenue;

(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.
December 2021 FCIC -18160 62

73 Inventory (Continued)

(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.

(5) The inventory report must provide a count or measurement of the insured’s quantity of the 

commodity in inventory using the unit of measure in which the commodity is marketed, 

such as bushels, tons, pounds, boxes, head, or carton. Units of measure can be found in 

exhibit 4. The inventory should list multiple lines for a commodity if the type or variety has 

local market expected values that vary substantially by type or variety.

(6) All insurable commodities that are stored, unharvested, held for sale, or held for on-farm use

but are not used by the end of the insurance period must be included on the Inventory 

Report or Market Animal and Nursery Inventory Report regardless of whether the 

commodity was harvested, held to realize a gain in maturity or size, or was simply unsold.

(7) The information on the Inventory Report and the Market Animal and Nursery Inventory 

Report must be substantiated by the AIP using verifiable records, including but not limited 

to:

(a) storage records from elevators, packing houses, warehouses, or other commercial 

storage facilities;

(b) measurements of farm stored production if measured by an AIP, FSA, or other USDA 

authorized representative;

(c) complete and accurate count of animals; and

(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.
December 2021 FCIC -18160 63

73 Inventory (Continued)

However, some commodities, such as avocados and citrus, may mature to the point the 

commodity is regarded as produced and saleable at established markets but remain “stored 

on the tree” for several additional months. Such saleable production that was produced in 

the previous insurance period but is “stored on the tree” at the beginning of the current 

insurance period must be accounted for on the inventory report for the current insurance 

period.

For Market Animals and Nursery Inventory, the inventory will be valued at the beginning of 

the insurance period so that the gain in value of the commodity during the insurance period

can be measured at the end of the insurance period.

(9) The ending inventory is completed at the end of the insurance period and the difference in 

value, or the ending inventory less the beginning inventory, is used as the adjustment 

amount. The Inventory adjustments will be used on the Claim for Indemnity Form in item

22 for the Inventory Report and item 26 for the Market Animal and Nursery Inventory 

Report.

74 Accounts Receivable, Payable, and Prepaid Expenses Report

The Accounts Receivable, Payable, and Prepaid Expenses Report is not required for each year in 

the five year whole-farm history period. The report is only required for the current policy year, if 

applicable.

(1) The Beginning Accounts Receivable, Payable, and Prepaid Expenses Report will be valued 

on the first day of the insurance period and submitted by:

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

(b) the later of the date:

(i) the insured submits their application; or

(ii) last day of the month in which the fiscal year begins if the insured is an early or 

late fiscal year filer.

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

the last day of the insurance period and submitted by the earlier of:

(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.
December 2021 FCIC -18160 64

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

(3) Revenue from commodities produced during the insurance period that have been sold and 

are no longer on the farm but for which payment has not been received are reported in Part 2 

of the Accounts Receivable, Payable, and Prepaid Expenses Report. If the value is shown 

on the farm tax forms due to the accounting method, then the commodity would not be 

listed on the Accounts Receivable, Payable, and Prepaid Expenses Report. The amount of 

accounts receivable will count as revenue for the insurance period and is entered in item 23

of the Claims for Indemnity Form.

Example: Insured A sold and delivered 100 boxes of cucumbers to a processor for a 

specified price but has not received the payment from the processor. Insured A 

has another 200 boxes of cucumbers they have not sold and for which there is no 

specified price. Insured A includes the 100 boxes of cucumbers sold to the 

processor in the Accounts Receivable, Payable, and Prepaid Expenses Report, 

and includes the other 200 boxes in the Inventory Report.

The values in accounts receivable must be the amount due the insured for the commodity 

minus the cost, or other basis, of the commodity if the commodity was purchased for resale.

Example: Insured B purchased 200 units of kiwis for resale at a cost of $400. Insured B 

sold the 200 units of kiwis for $1,000 but has not received payment. The 

Accounts Receivable Report should show $600 ($1,000 - $400) as accounts 

receivable for the 200 units of kiwis.

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

in the beginning Accounts Receivable, Payable, and Prepaid Expenses Report, but are then 

collected by the insured during the insurance period, these accounts receivable will not be 

included in cash receipts for the insurance period because they are revenue from the 

previous year. These amounts should be removed from the commodity income on the 

Allowable Revenue Worksheet in the adjustments to income.

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

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

sales records.

Refer to paragraph 146 for instructions on how to handle co-operative cash payments and 

allocations.

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

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

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

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

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

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

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

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

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

reduction of insured revenue.
December 2021 FCIC -18160 65

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

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

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

for the current policy year.

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

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

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

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

period before calculating the expense reduction factor.

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

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

sales records.

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

expenses;

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

accounts payable for claims purposes; or

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

payable.

75-90 (Reserved)
December 2021 FCIC -18160 66

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.
December 2021 FCIC -18160 67

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.
December 2021 FCIC -18160 68

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.
December 2021 FCIC -18160 69

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.
December 2021 FCIC -18160 70

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; and

(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.
December 2021 FCIC -18160 71

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 and Allowable Expenses 

Worksheets, Beginning and Ending Accounts Receivable and Beginning and Ending 

Accounts Payable, and any other verifiable documentation and/or information used to 

complete the Claim for Indemnity Form.

(3) The AIP will use the insured’s farm tax forms and verifiable records requested by the 

AIP that were used to create the farm tax forms, to calculate the allowable revenue and 

allowable expenses for the policy year including any required adjustments, to 

determine if the insured has an insurable loss.

(4) If the insured has complied with all the policy provisions, the AIP will pay the loss for 

a replant or for a claim for indemnity within 30 days after:

(a) Agreement is reached with the insured;

(b) Completion of arbitration or appeal proceedings;

(c) Completion of any investigation by USDA, if applicable, of the insured’s current 

claim for indemnity if no evidence of wrongdoing is found. (If any evidence of 

wrongdoing is discovered, the amount of any indemnity, or replant overpayment 

as a result of such wrongdoing may be offset from any indemnity owed to the 

insured.); or

(d) The entry of a final judgment by a court of competent jurisdiction.

(5) In the event the AIP is unable to pay the insured’s loss within 30 days, the AIP will 

give the insured notice of their intentions within the 30-day period.

(6) The AIP may defer, at their discretion, the claim adjustment up to 180 days from the 

date 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;
December 2021 FCIC -18160 72

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;

(e) until a RFOR is submitted; or
December 2021 FCIC -18160 73

95 Replant Payment (Continued)

(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 x 20%) x 85%

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

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

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

96-100 (Reserved)
December 2021 FCIC -18160 74

Section 2 Claim Information

101 Adjustments to Revenue

A. General Information

Adjustments to revenue are required for claim purposes regardless of the accounting 

method, cash or accrual, used by the insured. For claims purposes, revenue will be 

considered earned regardless of whether the revenue is reported to the IRS during the tax 

period applicable to the policy year. Refer to paragraph 7 for information about cash and 

accrual accounting methods.

Adjustments to revenue for increases and decreases in inventory or accounts receivable for 

the policy year are made by subtracting the beginning balance from the ending balance. 

Positive amounts are added to the allowable revenue and negative amounts are subtracted. 

Refer to subparagraph B and the Claims for Indemnity Form for adjustments for inventory 

and accounts receivable.

B. Adjustments for Accounts Receivable

Determine the amount to add to or subtract from to the insured’s allowable revenue for the 

policy year by subtracting the beginning balance of accounts receivable from the ending 

balance of accounts receivable for the policy year. Values shown on the Accounts 

Receivable Report will not include the cost of the commodity being valued if the 

commodity was purchased for resale.

Accounts receivable from previous years that were determined to be uncollectable and were 

not reported as Beginning Accounts Receivable, but that are collected by the insured during 

the policy year will not be included in cash receipts for the policy year. Any amounts 

reported on the farm tax form as revenue should be adjusted out of the revenue on the 

Allowable Revenue Worksheet. The beginning balance of all accounts receivable must not 

include the cost, or other basis, of the commodity if the commodity was purchased for 

resale.

Example: Insured B purchased 200 units of Mums for resale. The 200 units cost $400. 

Insured B sold the 200 units of Mums for $1,000 but has not received payment. 

Insured B should report $600 ($1,000 - $400) as the beginning accounts 

receivable for the 200 units of Mums.

Refer to paragraph 74 for information about accounts receivable.

Sum the balances (column 9 of Part 2) on the Accounts Receivable, Payable, and Prepaid 

Expenses Report. Negative numbers will make the number smaller, positive numbers will 

make the number larger. The final result may be positive or negative. The final result is put 

in item 23 on the Claim for Indemnity Form.
December 2021 FCIC -18160 75

101 Adjustments to Revenue (Continued)

B. Adjustments for Accounts Receivable (continued)

Example: Insured A reports $50,000 revenue for the policy year. Insured A reports a loss 

under WFRP and had $6,000 beginning balance and $12,000 ending balance on 

the Accounts Receivable Report for the policy year. The AIP subtracts the 

beginning accounts receivable from the ending accounts receivable to get 

+$6,000 ($12,000 - $6,000). This number will be entered in box 23 of the on the 

Claims form and will be added to the allowable revenue for the insured year 

because it is a positive number.

C. Adjustments for Inventoried Commodities Not Held to Realize a Gain

The insured’s revenue for the policy year must also be adjusted based on the amount and 

value of commodities in the insured’s beginning and ending inventory. The value of the 

beginning inventory is subtracted from the value of the ending inventory to calculate the 

adjustment. This amount is then entered on the Claim for Indemnity Form in item 26. If it 

is a positive number the amount will be added to the allowable revenue for the policy year, 

if it is a negative number the amount will be subtracted from the allowable revenue for the 

policy year.

Example: Insured A has $50,000 allowable revenue for the policy year. Insured A 

reports a loss under WFRP and has the following: Beginning inventory of 

6,000 units of commodity B that was produced in the prior year; Ending 

inventory of 500 units of commodity A valued at $2.00 per unit, and 1,000 

units of commodity B valued at $1.00 per unit, all of which was produced 

during the policy year. The 6,000 units of commodity B that were produced in 

prior year was sold for $1.00 per unit during the policy year. The table below 

shows the inventory adjustment (-$4,000), which is transferred to Box 22 of 

the claims form to adjust the allowable revenue for the policy year to $46,000 

($50,000 - $4,000).

COMMODITY 

NAME

Beginning 

Inventory

Value Value Received Ending 

Inventory

Value Net Value

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

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

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

Inventory Adjustment: Total Ending Value ($2,000) - Total Beginning Value ($6,000) = -$4,000
December 2021 FCIC -18160 76

102 Adjustments to Expenses

The following procedures in paragraph 102 are not applicable to Micro Farm.

A. Accrual Adjustments to Expenses

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

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

their allowable expenses adjusted using accrual accounting methods when:

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

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

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

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

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

make accrual adjustments to expenses.

B. Adjustments for Changes in Prepaid Expenses

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

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

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

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

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

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

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

by the seller.

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

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

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

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

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

Refer to subparagraph D for an example.

C. Adjustments for Changes in Accounts Payable

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

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

beginning balance of operating accounts payable from the ending balance is:

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

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

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

Refer to subparagraph D for an example.
December 2021 FCIC -18160 77

102 Adjustments to Expenses (Continued)

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

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

allowed according to subparagraph A.

Insured A reports a loss and the following information:

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

Beginning prepaid expenses: $9,000

Ending prepaid expenses: $8,000

Beginning Accounts Payable: $5,000

Ending Accounts Payable: $6,500

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

according to the following table.

Beginning Value Ending Value Adjustment Amount

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

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

Total $2,500

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

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

103 Changes Occurring Within Policy Year

A. Effect of Changes

At the time a claim is filed, the AIP must evaluate the effect of any unreported changes that 

affects the approved revenue. The AIP must obtain, from the insured, documentation 

indicating the reasons for discrepancies identified between the information provided on the 

RFOR and the Claim for Indemnity Form when a claim is filed.

Based on the documentation provided and the evaluation conducted, the AIP must 

determine whether the approved revenue should be reduced, or liability denied according to 

the WFRP policy. Reducing the approved revenue will require revising the 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:
December 2021 FCIC -18160 78

103 Changes Occurring Within Policy Year (Continued)

A. Effect of Changes (continued)

(1) ownership;

(2) business structure;

(3) size of operation;

(4) management practices;

(5) type of farm operation; and

(6) accounting methods.

Other changes in the insured’s farm operation can also affect the approved revenue. Such

changes include, but are not limited to:

(1) intended commodities not planted;

(2) different commodities planted than were intended;

(3) significantly more or fewer acres planted than intended; 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 expenses must also be 

recalculated, and the premium adjusted to reflect the revised approved revenue and 

expenses.

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

determined to be incorrect.

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

Expenses Not Incurred

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

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

expenses. Refer to subparagraph 72B for determining approved expenses. This adjustment, 

if applicable, is made when a claim is filed.

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

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

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

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

replacement commodities requiring lower expenses were planted;

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

exceeded the value of the commodity; and 

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

management practices.
December 2021 FCIC -18160 79

103 Changes Occurring Within Policy Year (Continued)

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

Expenses Not Incurred (continued)

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

revenue adjusted for expenses not incurred.

Step Action

1 Divide the allowable expenses for the policy year by the approved expenses. 

Round result to three decimal places.

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

of $130,000. Insured A reports allowable expenses of $68,000 for the 

policy year. The result of step one for Insured A is 0.680 ($68,000 ÷ 

$100,000).

2 If the result of step one is:

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

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

3 Subtract the result of step one from 0.700

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

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

from 1.000.

Example: Continuing example from step one, the expense reduction factor is 

0.980 (1.000 - 0.020).

5 Determine the approved revenue adjusted for expenses not incurred amount by 

multiplying the approved revenue by the expense reduction factor (result of step 

four). Round to the nearest whole dollar.

Example: Continuing example from step one, Insured A’s approved revenue is 

$127,400 ($130,000 x 0.980).

(4) For Micro Farm, the expense reduction factor will be equal to 1.00.

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. 
December 2021 FCIC -18160 80

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 2021 that 

will cause a loss of revenue from the crop in 2022. The damage did not affect 

2021 revenue. Producer A was insured under WFRP for 2021, will continue 

coverage in 2022, 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 2022 FOR. However, beginning with the 

2023 policy year, any loss of revenue from the ice damage that occurred in 2021

will not be covered. The expected revenue reported for the perennial crop in 

2023 and subsequent policy years must not include any amount that was lost 

because of the 2021 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.

The following table provides the steps for calculating RTC.

Step Action Applicable 

Procedure Reference

1 Determine insured’s allowable revenue for the policy year. Paragraph 44

2 Adjust the allowable revenue determined in step one, if 

applicable.

Paragraph 103
December 2021 FCIC -18160 81

106 Revenue-to-Count (Continued)

Step Action Applicable 

Procedure Reference

3 Adjust the allowable revenue determined in step two by 

adding or subtracting, as applicable, required adjustments 

for accounts receivable.

Subparagraph 101B

4 Adjust the allowable revenue determined in step three by 

adding or subtracting, as applicable, required adjustments 

on Inventory Report for commodities not held to realize a 

gain.

Subparagraph 101C

5 Adjust the allowable revenue determined in step four by 

adding or subtracting, as applicable, required adjustments 

on the Market Animals and Nursery Inventory Report for 

commodities held to realize a gain.

Paragraphs 143 and 

144 for animals and 

nursery commodities

6 Add all values assigned for uninsured causes of loss to the 

allowable revenue determined in step five.

Paragraph 44

7 Add the value assigned to abandoned acreage/commodities 

to the allowable revenue determined in step six.

Paragraph 44

8 Add any net gain from commodity hedging and speculation, 

not less than zero, to the allowable revenue determined in 

step seven.

Paragraph 44

9 Add the total of any indemnity received from an insurance

policy covering insured commodities authorized under the 

Act 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:

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.

Paragraph 44

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.)
December 2021 FCIC -18160 82

106 Revenue-to-Count (Continued)

Step Action Applicable 

Procedure Reference

10

(Cont.)

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 (adjusted for expenses, if applicable).

Paragraph 123

107 Indemnities

A. Claim for Indemnity

(1) A claim for indemnity declaring the amount of loss must be submitted to the AIP no 

later than 60 days after the earlier of the:

(a) date the insured filed their taxes with the IRS; or

(b) original date the insured’s farm tax forms for the policy year must be provided to 

the IRS, as specified by the IRS, except as provided in 2(b) below.

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:
December 2021 FCIC -18160 83

107 Indemnities (Continued)

A. Claim for Indemnity (continued)

(i) submit a claim for indemnity declaring the amount of loss no later than 60 

days after the earlier of the date the:

(A) insured filed their taxes with the IRS; or

(B) final extended tax due date;

(ii) provide a copy of their request for an extension, Federal tax return showing 

the date it was signed, or proof of mailing showing the date the return was 

filed; and

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

The AIPs may require the insured to request IRS send the AIP verification of the 

date insured’s return was filed.

B. Changes to Filed Federal Taxes

Any change to filed Federal tax returns within three years after a claim was settled may 

require an adjustment to the amount of indemnity paid.

The AIP must correct the insured’s indemnity, approved revenue, approved expenses, and 

WFRP database when a change is made to the insured’s filed Federal tax returns that results 

in a five percent or greater change to the insured’s approved revenue or 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, accounts receivable, and 

accounts payable will be to remove production and expenses from previous years and to 

count production and expenses for the insured year.

D. Settlement of Claim

A claim cannot be settled until:

(1) the insured’s Federal taxes for the policy year are filed; 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.
December 2021 FCIC -18160 84

107 Indemnities (Continued)

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.

Important: The approved revenue amount may require an expense reduction adjustment 

when a claim for indemnity is completed.

The following table provides the steps for calculating an indemnity. Refer to exhibit 16 for 

the Claim for Indemnity Form.

Step Action Applicable 

Procedure 

Reference

Calculate Insured Revenue for the Policy Year:

1 Determine the insured’s allowable expenses for the policy year

on the Allowable Expense Worksheet using the farm tax forms 

from the policy year. Enter this number on the Claim for 

Indemnity Form.

Paragraphs 45

and 102

2 Transfer Approved Expenses from the FOR to the Claim for 

Indemnity Form.

Subparagraphs

72B

3 Calculate any expense reduction. Subparagraph 

103C

4 Multiply the insured’s approved revenue, as adjusted in step 3 if 

applicable, by the insured’s coverage level to calculate the 

Insured Revenue for the year.

Refer to

paragraph 42 

for available 

coverage levels 

5 Determine the amount of NAP payments and indemnities from 

insurance policies not authorized by the Act that exceed the 

deductible.

Paragraph 123

6 Determine the insured’s Allowable Revenue for the policy year 

on the Allowable Revenue Worksheet using the farm tax forms 

for the policy year and enter this on the Claims Form.

Paragraph 44

7 Positive and negative numbers for the Inventory adjustment, 

Accounts Receivable adjustment, Market Animal and Nursery 

adjustment, and All other adjustments are entered on the Claims 

form and added or subtracted from the result of (5) depending 

upon the sign. 

Exhibits 7-9

8 Subtract the insured’s RTC from step 6 from the insured revenue 

to determine the Revenue Loss which is the indemnity to be 

paid.

Refer to 

paragraph 106 

to determine 

RTC.

108-120 (Reserved)
December 2021 FCIC -18160 85

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 (adjusted for expenses, if applicable). If the total of all such indemnities exceed 

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;

(b) Multiply the insured’s deductible by the expense reduction factor to adjust for 

expenses not incurred; and
December 2021 FCIC -18160 86

123 Other Insurance and NAP (Continued)

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

Example: The insured’s WFRP deductible is $32,500 with an expense reduction factor of 0.980. 

The insured received 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

-$31,850 Deductible adjusted for expenses ($32,500 x 0.980)

$3,150 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.

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)
December 2021 FCIC -18160 87

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.
December 2021 FCIC -18160 88

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 he/she intends 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.

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.
December 2021 FCIC -18160 89

141 Organically Grown Commodities (Continued)

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 and 

allowable expenses. Added value from post-production operations is also not insurable under the 

WFRP policy and must be removed from allowable revenue and allowable expenses. 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 in 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, trimming; 

(ii) packaging materials, such as boxes, cartons, and bags;

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

(iv) cold and controlled atmosphere storage; or
December 2021 FCIC -18160 90

142 Post-Production Operations and Market Readiness (Continued)

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

(i) the value of wine compared to the grapes;

(ii) the value of gift baskets of commodities compared to the individual raw 

commodity prices;

(iii) The value of juicing or processing into jams or relish compared to the harvested 

fruit; or

(iv) The value of bonsai or braided ornamental trees compared to the containerized 

tree with no added value.

(2) Post-production operations that meet the following requirements as market readiness costs 

do not have to be deducted from the allowable or expected revenue. Costs that can be 

considered market readiness costs must:

(a) be the minimum required to remove the commodity from the field and make it market 

ready (Refer to example in paragraph 45);

(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).

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.
December 2021 FCIC -18160 91

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 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

(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.
December 2021 FCIC -18160 92

143 Animals (Continued)

E. Inventory Adjustments to Revenue

(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;

(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.
December 2021 FCIC -18160 93

143 Animals (Continued)

G. Capping Animal and Animal Product Expected Revenue on Intended and Revised 

Farm Operation Reports (continued)

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 X 0.961538 = $673,077

Hogs $750,000 X 0.961538 = $721,154

Sheep $230,000 X 0.961538 = $221,154

Poultry $400,000 X 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.

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 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.
December 2021 FCIC -18160 94

144 Nursery/Greenhouse (Continued)

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.

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.
December 2021 FCIC -18160 95

144 Nursery/Greenhouse (Continued)

E. Revenue from Plants held In Inventory to Realize Gain (continued)

Example: Insured A has 200 plants he is going to hold in inventory for two years. He is 

holding these plants to obtain a higher price for the plants when they have 

matured to larger size. The first year they are in inventory the plants increased 

in value by $2.00 per plant. The increase in value of $400 (200 plants x $2.00) 

must be reported as revenue for WFRP purposes for that insurance period.

F. Capping Nursery/Greenhouse Revenue 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:

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 X 0.961538 = $673,077

Plant 2 $750,000 X 0.961538 = $721,154

Plant 3 $230,000 X 0.961538 = $221,154

Plant 4 $400,000 X 0.961538 = $384,615

Total $2,000,000
December 2021 FCIC -18160 96

144 Nursery/Greenhouse (Continued)

F. Capping Nursery/Greenhouse Revenue on Intended and Revised Farm Operation 

Reports (continued)

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 9.

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.

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.
December 2021 FCIC -18160 97

146 Commodities Sold with Co-op Retainages (Continued)

A. Supplemental Information (continued)

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 

co-operative’s schedule.

Example: Each year the ABC Co-operative retains 10-30 percent of a producer’s net grape 

proceeds. It documents the amount retained by issuing Allocation Credits for 80 

percent of the amount retained and issuing Permanent Equity Capitol Credits for 

20 percent of the amount retained.

Allocation Credits reach full face value at the maturity date specified by the co-operative. 

However, the producer may have the option of redeeming a crop year’s Allocation Credits 

prior to the maturity date. Producers may sell allocation credits at a reduced value to a 

broker prior to reaching full face value. Producers must pay Federal Income Taxes on the 

full stated value of qualified written notices of Allocation Credits in the year they are issued.

Permanent Equity Capitol Credits are a source of the co-operative’s working capital. The 

co-operative’s policy governs repayment, partial repayments, payback options, and whether 

excess Permanent Equity Capital Credits will be distributed in the form of Allocation 

Credits or refunded as cash. Producers are subject to Federal income tax on the full stated 

value in the tax year received. Cash refunds are not generally subject to Federal income tax 

since they were taxable to the cooperative member when allocated.

Non-Cash allocations are subject to Federal Income Tax when received; therefore, it is not 

necessary to maintain a year-to-year balance for WFRP purposes.
December 2021 FCIC -18160 98

146 Commodities Sold with Co-op Retainages (Continued)

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.

Example: Insured A has filed a loss claim for the 2022 policy year, and markets grapes 

through ABC Co-operative, which distributes proceeds from the grapes in cash 

and allocations. In 2022, insured A received $12,115 cash payments and 

$10,200 in Allocation Credits and Permanent Equity Capital Credits for the 2021

policy year. Insured A reported the total $22,315 to IRS in 2022.

Insured A’s total projected earnings for grapes were $48,271 in 2022. Insured A 

received $21,773 in “cash advance” payments in 2022 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.

Commodity 

Name

Name of Buyer Beginning Amount Ending 

Amount

Balance

Grapes ABC Co-operative $12,115 (Cash) $0 -$12,115

Grapes ABC Co-operative $10,200 (Allocations) $0 -$10,200

Grapes ABC Co-operative 0 $26,498 $26,498

Total Accounts Receivable Adjustments to Claim $4,183
December 2021 FCIC -18160 99

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, allowable expenses, and post-production operation costs, regardless of the actual value 

and price used by a vertically integrated operation. Refer to the CIH for acceptable record 

requirements for vertically integrated entities.

Example: Insured A is a vertically integrated operation that controls all stages of production of a 

commodity including, but not limited to, purchasing of seed, planting, fertilizing, 

harvesting, removal from the field, purchasing packaging materials, washing, grading, 

packaging, processing, and selling. 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, allowable 

expenses, and post-production operation costs for insured A.

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:
December 2021 FCIC -18160 100

148 Commodities Purchased for Resale (Continued)

(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.

Soybeans $85,000

$100,000 - $85,000 = $15,000

$15,000/$100,000 = 0.150000

1.000 - 0.150000 = 0.850000

Corn (PFR) $50,000 x 0.850000 = $42,500

Wheat (PFR) $25,000 x 0.850000 = $21,250

Hay (PFR) $25,000 x 0.850000 = $21,250

Total $85,000

Only the Total Expected Revenue of each commodity on the 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; 
December 2021 FCIC -18160 101

149 Industrial Hemp (Continued)

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

(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.
December 2021 FCIC -18160 102

149 Industrial Hemp (Continued)

(4) Industrial hemp that is unsalable or destroyed due to a THC level exceeding the maximum 

acceptable limit as stated in subparagraph 18(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.

(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., bottle 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).
December 2021 FCIC -18160 103

150 Combined Direct Marketing Commodities (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.

(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)
December 2021 FCIC -18160 104

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., bottle water, souvenir 

sales, etc., sold through a farm stand) 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).

(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.
December 2021 FCIC -18160 105

Exhibit 1

Acronyms and Abbreviations

The following table provides the acronyms and abbreviations used in this handbook.

Approved 

Acronym/Abbreviation

Term

Act Federal Crop Insurance Act, as amended (7 U.S.C. 1501 et. Seq.)

AD Actuarial Documents

AIP Approved Insurance Provider

AMS Agricultural Marketing Service

ARC Agricultural Risk Coverage

ARH Actual Revenue History

BFR Beginning Farmer or Rancher

CCD Contract Change Date

CFR Code of Federal Regulations

CIH Crop Insurance Handbook

ERS Economic Research Service

FCIC Federal Crop Insurance Corporation

FOR Farm Operation Report

FFOR Final Farm Operation Report

FSA Farm Service Agency

GFP Good Farming Practice

IFOR Intended Farm Operation Report

IRS Internal Revenue Service

NAP Noninsured Disaster Assistance Program

NASS National Agricultural Statistics Service

PAIR Pre-Acceptance Inspection Report

PASD Product Administration and Standards Division

PAW Pre-Acceptance Worksheet

PFR Purchase for Resale

PHTS Policy Holder Tracking System

PLC Price Loss Coverage

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
December 2021 FCIC -18160 106

Exhibit 2

Definitions

Abandon means failure to continue activities necessary to produce an amount of allowable revenue 

equal to or greater than the expected revenue of a commodity, performing activities so insignificant as 

to provide no benefit to a commodity, or failure to harvest or market a commodity in a timely manner.

Accrual accounting method means a system of record keeping in which revenue earned and expenses 

incurred for a specified time period are recorded regardless of whether or not the revenue was received,

or the expenses were paid during the specified time period.

Actuarial Documents means the information for the policy year that is available for public inspection in 

the insured’s agent’s office and published on RMA’s web site that includes available crop insurance 

policies, coverage levels, information needed to determine amounts of insurance, premium rates, 

premium adjustment percentages, program dates, and other related information regarding the insurance 

coverage.

Agricultural experts mean persons who are employed by the Cooperative Extension System or the 

agricultural departments of universities, or other persons approved by FCIC, whose research or 

occupation is related to the specific commodity for which such expertise is sought.

Allowable expenses mean farm expenses, specified by the WFRP policy, and adjusted as applicable, 

that are incurred in the production of commodities on the applicant’s/insured’s farm and reported to the 

IRS on farm tax records.

Allowable revenue means farm revenue, specified by the WFRP policy and including applicable 

adjustments, from the production of commodities produced by the applicant’s/insured’s farm operation, 

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 mean living organisms other than plants or fungi that are produced or raised in farm 

operations, including, but not limited to, cattle, horses, swine, sheep, goats, poultry, fish, bees, and fur 

bearing animals. For the purposes of WFRP, animals must be propagated or reared in a controlled 

environment.

Animal products means any commodity derived from a live animal, excluding commodities that are also 

animals or parts of animals. Examples include milk, eggs, honey, and wool but not live calves, processed 

broilers, package bees, or mutton.

Application means the form required to be completed by the applicant/insured and accepted by the

AIP before insurance coverage will begin.

Approved expenses mean amount of allowable expenses the applicant’s/insured’s farm operation is 

expected to incur during the insurance period, as approved by the AIP.

Approved revenue means the amount of allowable revenue that the applicant’s/insured’s farm operation 

is expected to earn or will obtain from the sale of commodities the applicant/insured produces, or 

purchases for resale, in the insurance period, as approved by the AIP.

Aquaculture commodity means aquatic animals or plants grown in a controlled aquatic environment;

including, but not limited to fish, shellfish, and seaweeds.
December 2021 FCIC -18160 107

Exhibit 2

Definitions (Continued)

Assignment of indemnity means a transfer of policy rights, whereby the applicant/insured assigns their 

right to an indemnity payment, for the policy year only, to creditors or other persons to whom they have 

a financial debt or other monetary obligation.

Average allowable expenses mean the average of the allowable expenses for applicant’s/insured’s 

whole-farm history period.

Average allowable revenue means the average of the allowable revenue for the applicant’s/insured’s 

whole-farm history period after any applicable adjustments.

Beginning accounts payable means allowable expenses incurred prior to the insurance period and 

supported by verifiable records, but that have not been paid at the beginning of the insurance period.

Beginning accounts receivable means allowable revenue earned prior to the insurance period, but that 

has not been received at the beginning of the insurance period and supported by verifiable records. 

This amount includes the value of beginning inventory that is under a marketing contract with a buyer 

to be purchased at a specified price.

Beginning farmer or rancher is an individual who has not actively operated and managed a farm or 

ranch in any state, with an insurable interest in a crop or livestock as an owner-operator, landlord, 

tenant, or sharecropper for more than 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 postsecondary education, in accordance with FCIC procedures. A person other than an individual may be

eligible for beginning farmer or rancher benefits if all of the substantial beneficial interest holders 

qualify as a beginning farmer or rancher.

Beginning inventory means the commodities the applicant/insured produced or owned prior to the 

insurance period, but that have not been sold or otherwise disposed of at the beginning of the insurance 

period and supported by verifiable records. Any commodity that is under a marketing contract with a 

buyer to be purchased during the previous insurance period at a price that will not be determined until 

the current insurance period or subsequent years will be considered as beginning inventory.

Bypassed acreage means land on which a commodity, grown under a processor contract, is ready for 

harvest but the buyer elects not to accept the commodity and it is not harvested.

Calendar year filer means an insured that files taxes based on the 12 consecutive months corresponding 

to January 1 through December 31.

Cancellation date means the date specified in the AD for the tax filer type on which coverage will 

automatically renew unless canceled in writing by either the insured or the AIP or terminated in 

accordance with WFRP policy.

Carryover insured means an insured that was covered under WFRP in the policy year immediately prior 

to the current policy year without respect to insurance provider. 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.
December 2021 FCIC -18160 108

Exhibit 2

Definitions (Continued)

Cash accounting method means a system of record keeping where farm business revenue and expenses 

are recorded during the time period they are actually received or paid.

Catastrophic Risk Protection (CAT) means the minimum level of coverage offered by FCIC.

Certificate means with respect to organic crops, a written document that identifies the name of the 

person certified, effective date of certification, certificate number, types of products certified, and name 

and address of the certifying agency.

Certification means with respect to organic crops, a determination made by the certifying agency that 

the production or handling operation is in compliance with the certifying agency’s certification 

standards.

Certified organic acreage means acreage in the certified organic farming operation that has been 

certified by a certifying agent as conforming to organic standards in accordance with 7 CFR part 205.

Certifying agent means a private or governmental entity accredited by the USDA Secretary of 

Agriculture for the purpose of certifying a production, processing or handling operation as organic.

Claim for indemnity means a claim for a loss made on the AIP’s form that contains the information 

necessary to pay the indemnity, as specified in the WFRP policy.

Combined direct marketing means two or more commodities sold through direct marketing and 

reported as a single commodity code on the insured’s FOR.

Commodities purchased for resale mean commodities not produced by the farm operation, but which 

are purchased to be added by the farm operation. This does not include commodities purchased for 

further growth, development or maturity for later sale, or commodities purchased to replace production 

of the farm operation lost due to insurable causes.

Commodity means any agricultural product established or produced by the farm operation, except 

timber, forest, and forest products, animals for sport, show, or pets.

Commodity code is a code designating an agricultural product that qualifies as a commodity for the 

commodity count calculations. A commodity code may have more than one associated rate code. For 

the purposes of Micro Farm, all agriculture commodities on the insured’s farm operation are designated 

under a single code.

Commodity count means the number of commodities on the farm operation as determined in section 

19I of WFRP policy.

Consent means approval in writing by the AIP allowing the insured to take a specific action.

Consolidated sales records mean 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.
December 2021 FCIC -18160 109

Exhibit 2

Definitions (Continued)

Contemporaneous records mean written records developed at the time the event occurred, recording 

information such as planting of a commodity, harvested production, sale of a commodity, daily 

receipts, etc.

Contract change date means the date by which changes to the policy, if any, will be made available.

Contract grower means a person retained under contract to manage the growth of a commodity owned 

by another person.

Controlled Substance is any substance whose manufacture, distribution, or use is federally regulated 

under the Controlled Substance Act.

Cooperative Extension System means a nationwide network consisting of a state office located at each 

state’s land-grant university, and local or regional offices. These offices are staffed by one or more 

agricultural experts, who work in cooperation with the National institute of Food and Agriculture, and 

who provide information to agricultural producers and others.

County means any county, parish, political subdivision of a state, or other area specified in the AD.

Damage means injury, deterioration, or loss of production of an insured commodity due to insured or 

uninsured causes.

Days mean calendar days, unless otherwise specified.

Deductible means the result of the producer’s approved revenue minus the producer’s insured revenue. 

The deductible represents the amount of the producer’s approved revenue that is not insured by the WFRP 

policy.

Delinquent debt has the same meaning as the term defined in 7 CFR part 400, subpart U.

Direct marketing means marketing commodities directly to consumers without the involvement of a 

third party (e.g., farmer’s markets, u-pick, roadside stands, internet sales, etc.).

Direct marketing sales records means contemporaneous records that document the sale of commodities 

through direct marketing. If the insured sells a commodity through direct marketing, they must provide 

the contemporaneous records used to determine allowable revenue on the Schedule F farm tax form.

Disinterested third-party means a person that does not have any familial relationship (parents, brothers, 

sisters, children, spouse, grandchildren, aunts, uncles, nieces, nephews, first cousins, or grandparents, 

related by blood, adoption or marriage, are considered to have a familial relationship) with the insured 

and who will not benefit financially from the sale of the insured commodity.

Disregarded entity means a single-member tax entity that does not elect to be treated as a corporation 

for income tax purposes and files taxes under another entity name.

Diversification discount means the discount to the applicant’s/insured’s farm premium rate their farm 

qualifies for based on their commodity count, as determined in accordance with section 19I of the 

WFRP Policy.
December 2021 FCIC -18160 110

Exhibit 2

Definitions (Continued)

Early fiscal year filer means 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 means the date upon which insurance coverage ceases for the policy 

year.

Ending accounts payable means allowable expenses incurred during the insurance period and supported 

by verifiable records, but that have not been paid at the end of the insurance period.

Ending accounts receivable means allowable revenue earned during the insurance period, but that has 

not been received at the end of the insurance period and supported by verifiable records. This amount 

includes the value of ending inventory that is under a marketing contract with a buyer to be purchased 

at a specified price.

Ending inventory means the commodities the insured produced during the insurance period, but that 

have not been sold or otherwise disposed of at the end of the insurance period and supported by 

verifiable records and reported on the Inventory Report as ending inventory. Any commodity that is 

under a marketing contract with a buyer to be purchased during the insurance period at a price that will 

not be determined until the subsequent policy years will be considered as ending inventory.

Expanded operation adjusted revenue is the average allowable revenue adjusted to reflect physical 

expansion of the farm operation.

Expanding operation factor is a factor that is used to calculate the expanded operation adjusted revenue

for farm operations that are physically expanding.

Expected revenue means the amount of revenue the applicant/insured expects to receive from a 

commodity as stated on the FOR.

Expected value means the price the insured can reasonably expect to receive for a commodity in 

accordance with the expected value guidelines in the WFRP policy, less the cost of all post-production 

expenses.

Expected Yield mean the yield the insured reasonably expects their insured commodity to produce 

under normal growing conditions in the insurance period, in accordance with the expected yield 

guidelines.

Expense reduction factor means a factor that is used to reduce the approved revenue for claim purposes 

when allowable expenses for the policy year are less than 70 percent of approved expenses.

Expense trend factor means a factor that is used to measure the year-to-year growth in expenses of the 

insured’s farm operation.

Farm operation means all farming activities for which revenue and expenses are reported to the IRS 

under a single taxpayer identification number will be considered a single a farm operation for WFRP 

purposes.
December 2021 FCIC -18160 111

Exhibit 2

Definitions (Continued)

Farm Operation Report means the form on which the applicant/insured provides all required 

information regarding the commodities they expect to earn revenue from during the insurance period. 

The 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 means the premium rate for coverage under this policy calculated based on the 

commodities on the insured’s farm operation.

Farm tax forms means 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.

Fiscal year means a period of 12 consecutive months used for accounting and tax purposes and ending 

on the last day of the twelfth month provided the twelfth month is not December (a twelve-month 

period ending the last day of December is a calendar year).

Generally recognized means when agricultural experts or organic agricultural experts, as applicable, are 

aware of the production method or practice and there is no genuine dispute regarding whether the 

production method or practice allows the commodity to make normal progress toward maturity.

Good farming practices means the production methods utilized to produce the insured commodities and 

allow them to make normal progress toward maturity resulting in at least the approved revenue, which 

are: (1) For conventional or sustainable farming practices, those generally recognized by agricultural 

experts for the area; or (2) for organic farming practices, those generally recognized by organic 

agricultural experts for the area or contained in the organic plan. The AIP or the insured may request 

the AIP to contact FCIC to determine whether or not production methods will be considered “good 

farming practices.”

Household means a domestic establishment including individuals with a familial relationship and others 

who live on the same property.

Indexed Revenue means the allowable revenue of a tax year adjusted to reflect growth during the 

whole-farm history period.

Indexed average revenue means 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 means 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 means the percentage of the commodity that is at financial risk of loss.

Insurance period means the 12-month period corresponding to the producer’s tax year beginning in the 

calendar year in which the SCD occurs.
December 2021 FCIC -18160 112

Exhibit 2

Definitions (Continued)

Insured means the named person as shown on the accepted application. This term does not extend to 

any other person having a share or interest in the crop, such as a partnership, landlord, or any other 

person, unless specifically indicated on the accepted application.

Insured commodity means a commodity the insured will produce or purchase for resale during the 

insurance period.

Insured revenue means the total amount of insurance provided to the insured.

Intended commodity is a commodity the insured reported on their IFOR.

Lag year means the tax year immediately preceding the insurance period.

Late fiscal year filer means an insured with a fiscal year that begins September 1 or later.

Local market price means the average price offered by buyers of the commodity in the area where the 

applicant/insured normally sells that commodity.

Market readiness operations means the on-farm activities that are the minimum required to remove the 

commodity from the field and make the commodity market ready, such as washing, packing, etc. 

Market readiness activities are not considered to be post-production operations and do not have to be 

excluded from allowable revenue and allowable expenses in accordance with section 45. Since it is the 

minimum required to remove the commodity from the field, the activity must occur on or in close 

proximity to the field where the commodity is produced. Market readiness operations do not include 

any activities that occur off-farm or on-farm in in-field that increases the value of the crop, such as 

canning, freezing, and processing activities that alter the physical nature of insurable commodities 

including, but not limited to, slicing apples, putting commodities into gift baskets, jams, jellies, wine, or 

cider, etc.

Marketing contract is a written agreement between the applicant/insured and a buyer for the purchase of 

a commodity the applicant/insured will produce on their farm operation at a specified price.

Native sod means acreage that has no record of being tilled (determined in accordance with information 

collected and maintained by an agency of the USDA or other verifiable records that applicant/insured 

provides and are acceptable to the AIP) for the production of an annual crop on or before February 7, 

2014, and on which the plant cover is composed principally of native grasses, grass-like plants, forbs, 

or shrubs suitable for grazing and browsing.

Negligence means the failure to use such care as a reasonably prudent and careful person experienced 

in the production of commodities would use under similar circumstances.

Net value is the value of a commodity at the beginning of the insurance period minus the cost of the 

commodity.

Noninsured Crop Disaster Assistance Program is a program administered by FSA which provides 

coverage to producers of crops that do not have a permanent crop insurance program available 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.
December 2021 FCIC -18160 113

Exhibit 2

Definitions (Continued)

Notice of loss means 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 mean plants which are propagated or grown to be sold as plants, 

not including commodities produced by plants (e.g., tomato plants, but not tomatoes). For the purposes 

of this policy, plants for nursery and greenhouse commodities must be propagated or grown in a 

controlled environment.

Offset means the act of deducting one amount from another amount.

Organic agricultural experts mean persons who are employed by the following organizations: 

Appropriate Technology Transfer for Rural Areas, Sustainable Agriculture Research and Education or 

the Cooperative Extension System, the agricultural departments of universities, or other persons 

approved by FCIC, whose research or occupation is related to the specific organic crop or practice for

which such expertise is sought.

Organic farming practice means a system of plant or animal production practices used to produce the 

commodity that is approved by a certifying agent in accordance with 7 CFR part 205.

Organic system plan means a written plan, in accordance with the National Organic Program published 

in 7 CFR part 205 that describes the organic farming practices to be carried out on the farm operation.

Organic standards mean standards in accordance with the Organic Foods Production Act of 1990 (7 

U.S.C. 6501 et seq.) and 7 CFR part 205.

Originating entity means an entity that actually physically produces the commodity.

Pass-through entity means an entity that reports to the IRS but does not pay taxes on portions of the 

revenue, instead passing it to each individual owner who then pays income tax on their portion of the 

revenue from the business.

Perennial commodity is a commodity produced on a plant, bush, tree, or vine that has a lifespan of 

more than one year, as identified in the AD.

Person means an individual, partnership, association, corporation, estate, trust, or other legal entity, and 

wherever applicable, a State or a political subdivision or agency of a State. “Person” does not include 

the United States Government or any agency thereof.

Policy year means the calendar year that begins after the CCD (for late fiscal year filers the policy year 

will differ from the tax year insured under the WFRP policy).
December 2021 FCIC -18160 114

Exhibit 2

Definitions (Continued)

Post-production operations mean any operations not included in the definition of market readiness 

operations, performed after producing and harvesting an insured commodity to prepare it for sale. 

These include, but are not limited to, any activity occurring on-farm or off-farm to prepare the 

commodity for sale or any activity that increases the value of the crop, such as canning, freezing, and 

processing activities that alter the physical nature of insurable commodities such as slicing apples, 

putting commodities into gift baskets, making jams, jellies, wine, or cider, or costs for cold and 

controlled atmosphere storage.

Prepaid expenses mean the expenses relating to insured commodities that have been paid prior to the 

beginning of the insurance period.

Produced means an insured commodity will be considered produced when it has matured to the extent 

that it is generally saleable at established markets, regardless of whether or not it is actually harvested 

by the end of the insurance period.

Production capacity means physical land or structures used for the production of commodities on the

insured’s farm operation.

Prohibited substance means any biological, chemical, or other agent that is prohibited by Federal statute 

from use or is not included in the organic standards for use on any certified organic, transitional or 

buffer zone acreage. Lists of such substances are contained at 7 CFR part 205.

Qualifying revenue threshold is the minimum amount of revenue a commodity must be expected to 

generate to qualify as a commodity for the purpose of the insured’s commodity count.

Rate code is code designating a specific commodity, type, and practice for premium rate calculations. 

Each rate code has an associated premium rate specified in the actuarial documents.

Replanted commodity means the same annual commodity replanted on the same acreage as the first 

insured commodity for harvest in the same insurance period.

Replanting means performing the cultural practices necessary to prepare the land and then replacing the 

seed or plants of the damaged or destroyed commodity on the same acreage.

Revenue trend factor means a factor that is used to measure the year-to-year growth in revenue of the 

insured’s farm operation.

Sales closing date means the date contained in the AD for the tax filer type by which an application 

must be filed and the last date by which the insured may change coverage for a policy year.

Schedule F means a tax form commonly used to file Federal taxes for a farm.

Short tax year means a period of less than twelve consecutive months for which a tax entity may be 

required to file a tax return due to changing from a calendar year to fiscal year or vice versa or from 

changing the dates of a fiscal year.

Simple average allowable revenue means the simple average of the allowable revenue for all years in 

the applicant/insured’s whole-farm history period.
December 2021 FCIC -18160 115

Exhibit 2

Definitions (Continued)

Simple average indexed revenue means the simple average of the indexed revenue for all years in the 

whole-farm history period.

Special Provisions means the part of the policy that contains specific provisions of insurance that may 

vary by geographic area.

Substantial beneficial interest means an interest held by any person of at least 10 percent in you (e.g., 

there are two partnerships that each have a 50 percent interest in you and each partnership is made up of 

two individuals, each with a 50 percent share in the partnership. In this case, each individual would be 

considered to have a 25 percent interest in you, and both the partnerships and the individuals would 

have a substantial beneficial interest in you. The spouses of the individuals would not be considered to

have a substantial beneficial interest unless the spouse was one of the individuals that made up the 

partnership. However, if each partnership is made up of six individuals with equal interests, then each 

would only have an 8.33 percent interest in you and although the partnership would still have a 

substantial beneficial interest in you, the individuals would not). The spouse of any individual 

applicant or individual insured will be presumed to have a substantial beneficial interest in the applicant 

or insured unless the spouses can prove they are legally separated or otherwise legally separate under 

the applicable state dissolution of marriage laws. Any child of an individual applicant or individual 

insured will not be considered to have a substantial beneficial interest in the applicant or insured unless 

the child has a separate legal interest in such person.

Substitute Schedule F is a form used in place of a Schedule F form if the applicant/insured files farm 

tax forms for their farm operation that do not include a Federal Schedule F tax form.

Summary of coverage means the AIP’s statement to the insured, based upon the FOR that provides 

specific information about the insured’s policy including the amount of insurance coverage.

Tax entity means any person that has a tax reporting requirement.

Tax filer type means the type of tax filer for purposes of the WFRP policy, determined according to the 

producer’s tax year. The tax filer types are calendar year filer, early fiscal year filer, and late fiscal year 

filer.

Tax year means the annual accounting period for the farm operation defined by the 12-month period 

used for tax purposes. The tax years are (1) a calendar year or (2) a fiscal year. For the purposes of the 

WFRP policy, tax years are designated be the calendar year in which the 12-month period begins.

Total expected revenue means the total amount of expected revenue the applicant/insured expects to 

receive from all commodities on their farm operation in the insurance period, as stated on the FOR, 

including expected revenue from commodities lost to a covered cause of loss.

Transitional acreage means acreage on which organic farming practices are being followed but the 

acreage does not yet qualify to be designated as organic acreage.
December 2021 FCIC -18160 116

Exhibit 2

Definitions (Continued)

Verifiable records mean contemporaneous records provided from a disinterested third party (such as 

records from a warehouse, processor, packer, broker, input vendor, etc.), or by measurement of farm 

stored commodities. Except for those commodities sold through direct marketing, if the insured

processes or packs their insured commodities, they must provide final settlement sheets showing 

disposition of the insured commodities and marketing records reconcilable with revenue reported for 

tax purposes for their farm operation.

Vertically integrated operation means 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.

Veteran farmer or rancher means an individual who has served active duty in the United States Army, 

Navy, Marine Corps, Air 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 means the policy is considered not to have existed for a policy year.

Whole-farm historic average revenue means the historic, average allowable revenue generated from the 

farm operation, adjusted according to the policy, and stated on the WFHR.

Whole-farm history period means 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 means the report that documents the applicant’s/insured’s farm operation’s 

allowable revenue and allowable expenses for each tax year used to determine their whole-farm historic 

average revenue and average allowable expenses, and other information necessary to determine the 

farm operation’s whole-farm historic average revenues.
December 2021 FCIC -18160 117

Exhibit 3

Method of Establishment

The following table provides methods of establishment, abbreviations, and the numeric code for RMA 

processing.

Method of Establishment Abbreviation Numeric Code

Acre AC 20

Acre – Native Sod AC 19

Acre – Organic AC 21

Acre – Transitional Organic AC 16

Head HEAD 17

Head – Organic HEAD 18

Head – Transitional Organic HEAD 15

Linear Feet LN/FT 96

Linear Feet – Organic LN/FT 97

Linear Feet – Transitional Organic LN/FT 90

Number NUM 95

Number – Organic NUM 93

Number – Transitional Organic NUM 88

Other OTHER 99

Other – Organic OTHER 98

Other – Transitional Organic OTHER 91

Plant PLANT 22

Plant – Organic PLANT 25

Plant – Transitional Organic PLANT 24

Square Feet SQ/FT 23

Square Feet – Organic SQ/FT 26

Square Feet – Transitional Organic SQ/FT 27

Weight WT 94

Weight – Organic WT 92

Weight – Transitional Organic WT 89
December 2021 FCIC -18160 118

Exhibit 4

Unit of Measure

The following table provides units of measure, abbreviations, and the numeric code for RMA 

processing.

Unit of Measure Abbreviation Numeric Code

Bag/Sack BG/SK 11

Bale BALE 12

Barrel BBL 10

Bin BIN 24

Box BOX 13

Bushel BU 01

Carton CTN 14

Dozen DOZ 15

Each EACH 97

Flat FLAT 16

Gallon GAL 07

Head HEAD 17

Hive HIVE 18

Hundredweight CWT 03

Lug LUG 19

Nursery/Greenhouse NUG 96

Other OTHER 99

Ounce OZ 05

Package PKG 21

Peck PECK 09

Pint PINT 06

Plant PLANT 22

Pound LB 02

Purchased for Resale PFR 98

Quart QT 08

Square Foot SQ/FT 23

Ton TON 04
December 2021 FCIC -18160 119

Exhibit 5

Form Standards

This exhibit provides form standards:

(1) that are in addition to or in lieu of the standards and elements provided in the DSSH; and

(2) for forms that are unique to WFRP, including completion procedures.

Subparagraphs A through F refer to forms provided in DSSH. All other subparagraphs refer to forms 

unique to WFRP.

A. Conditions of Acceptance Statement 

The following sentences in the Conditions of Acceptance Statement must be removed. 

“Unless rejected or the SCD has passed at the time you signed this application, insurance will be 

in effect for the crop(s) and policy years specified and will continue for each succeeding policy 

year, unless otherwise specified in the policy, until canceled, terminated or voided. The insurance 

contract, which includes the accepted application, is defined in the regulation published at 7 CFR 

chapter IV.”

The following sentence must be added to the Conditions of Acceptance Statement.

“Unless rejected or the SCD has passed at the time you signed this application, insurance will be 

in effect for the policy year specified and will continue for each succeeding policy year, unless 

otherwise specified in the policy, until canceled, terminated or voided.”

B. Anti-Rebating Certification

Substitute “Policy Year” as a substantive element in place of “Crop Year.”

Substitute “I certify, for the policy year indicated,” in place of “I certify, for the crop year 

indicated,” at the beginning of the applicant/insured and agent substantive anti-rebating 

statements.

C. Application, Policy Transfer/Application, and Policy Change

Substitute “Effective Policy Year” as a substantive element in place of “Effective Crop Year.”

(1) The following substantive elements, as provided by DSSH, are not required. If they are 

included, complete each by entering “N/A.”

(a) “Name of Crop”

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”
December 2021 FCIC -18160 120

Exhibit 5

Form Standards (Continued)

C. Application, Policy Transfer/Application, and Policy Change (continued)

(2) The following statement must be within a box above the insured’s signature line and date.

“I understand that:

(a) my approved revenue and approved expenses (if applicable) 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.

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.”
December 2021 FCIC -18160 121

Exhibit 5

Form Standards (Continued)

C. Application, Policy Transfer/Application, and Policy Change (continued)

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

Substitute “Effective Policy Year” as a substantive element in place of “Effective Crop Year.”

Substitute the cancellation request statement in DSSH with the following statement.

“I hereby request cancellation of my WFRP insurance policy shown on this cancellation. I 

understand that if this form is not executed on or before the cancellation date listed, the 

cancellation of my WFRP insurance will not become effective until the following policy year.”

The following substantive elements, as provided by DSSH, are not required on a policy 

cancellation for WFRP policies. If they are included, complete each by entering “N/A.”

(1) “Name of Crop”

(2) “Options, Elections, or Endorsements”

The information to enter in all substantive elements are self-explanatory, provided in this 

handbook or the DSSH, or taken from the insured’s application.

E. Summary of Coverage and Policy Confirmation

Substitute “Effective Policy Year” as a substantive element in lieu of “Effective Crop Year.”

(1) The following substantive elements, as provided by DSSH, are not required. If they are 

included, complete each by entering “N/A.”

(a) “Options, Elections, or Endorsements”

(b) “Percentage of Price Election, Projected Price or Amount of Insurance”

(c) “Crop(s) Insured”

(d) “Crop/Practice/Type”

The information to enter in all substantive elements are self-explanatory, provided in this 

handbook or the DSSH, or taken from the insured’s application.
December 2021 FCIC -18160 122

Exhibit 5

Form Standards (Continued)

F. Withdrawal of Claim for Indemnity

The following substantive elements, as provided by DSSH, are not required. If they are included, 

complete each by entering “N/A.”

(1) “Name of Crop(s)”

(2) “Unit Number(s)”

Substitute the following sentence in lieu of the first sentence in the “Withdrawal Statement.”

“As of this date, I withdraw this claim for indemnity against the Approved Insurance Provider for 

the policy listed above.”

G. Whole-Farm History Report

The AIPs are responsible for developing the 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 6 for the WFHR required elements and example.

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).”

The WFHR must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.

H. Inventory Report

The AIPs are responsible for developing the Inventory Report form. The Inventory Report must 

be titled “INVENTORY REPORT.” The AIPs are not authorized to modify or delete any of the 

required elements. See exhibit 7 for the Inventory Report required elements and example.

In place of the certification statement in DSSH, the Inventory Report must include the following 

certification statement immediately above the applicant/insured signature.
December 2021 FCIC -18160 123

Exhibit 5

Form Standards (Continued)

H. Inventory Report (Continued)

“I certify that to the best of my knowledge and belief all of the information on this form is correct. 

I understand the information on this form may be reviewed and audited. I understand that 

inaccurate information or my failure to retain or provide, upon request, records supporting the 

information on this form may result in denial of coverage, cancellation of my policy, ineligibility 

for indemnity, or recalculation of insured revenue. I also understand that failure to report 

completely and accurately may result in sanctions under my policy, including but not limited to 

voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. 

§1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

The Inventory Report form must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.

I. Accounts Receivable, Payable, and Prepaid Expenses Report

The AIPs are responsible for developing the Accounts Receivable, Payable, and Prepaid Expenses

Report form. The Accounts Receivable, Payable, and Prepaid Expenses Report must be titled 

“ACCOUNTS RECEIVABLE, PAYABLE, AND PREPAID EXPENSES REPORT.”

The AIPs are not authorized to modify or delete any of the required elements. Refer to exhibit 8 

for the Accounts Receivable, Payable, and Prepaid Expenses Report required elements and 

example.

In place of the certification statement in DSSH, the Accounts Receivable, Payable, and Prepaid 

Expenses Report must include the following certification statement immediately above the 

applicant/insured signature.

“I certify that to the best of my knowledge and belief all of the information on this form is correct. 

I understand the information on this form may be reviewed and audited. I understand that 

inaccurate information or my failure to retain or provide, upon request, records supporting the 

information on this form may result in denial of coverage, cancellation of my policy, ineligibility 

for indemnity, or recalculation of insured revenue. I also understand that failure to report 

completely and accurately may result in sanctions under my policy, including but not limited to 

voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. 

§1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

The Accounts Receivable, Payable, and Prepaid Expenses Report must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.
December 2021 FCIC -18160 124

Exhibit 5

Form Standards (Continued)

J. Market Animal and Nursery Inventory Report

AIPs are responsible for developing the “Market Animal and Nursery Inventory Report” form. If 

a farm has animals or nursery, this form will be used in addition to the Inventory and Accounts 

Receivable form to handle the inventory for the animals and nursery. The AIPs are NOT 

authorized to modify or delete any of the required elements. Refer to exhibit 9 for the Market 

Animal and Nursery Inventory Report required elements and example.

If applicable, beginning and ending inventories are necessary to determine the 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.

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.

If animals are marketed in pounds, gross inventory values will be determined by multiplying the 

number of animals X the average lbs. per animal for the type/category X applicable value/price 

per lb.

For animals sold individually (by the head/animal), inventory values will be measured by 

multiplying the number of animals/livestock X the average value/price per animal for the 

type/category.
December 2021 FCIC -18160 125

Exhibit 5

Form Standards (Continued)

J. Market Animal and Nursery Inventory Report (continued)

Complete the beginning inventory (breeding animal inventory and market animal inventory for 

each applicable type/category of animals on hand at the beginning of the insurance period. 

Complete the ending inventory for animals that are on hand at the end of the insurance period. 

Include on the breeding animal inventory animals/livestock from which income is accounted for 

as gains or losses on Schedule D (Form 1040), Form 4797 (animals held for breeding, dairy

purposes, or not held primarily for sale), or is depreciated on Form 4799.

In place of the certification statement in DSSH, the Market Animal and Nursery Inventory Report 

must include the following certification statement immediately above the applicant/insured 

signature.

“I certify that to the best of my knowledge and belief all of the information on this form is correct. 

I understand the information on this form may be reviewed and audited, and used to determine my 

loss, if any, for the policy listed above. I understand that inaccurate information or my failure to 

retain or provide, upon request, records supporting the information on this form may result in 

denial of coverage, cancellation of my policy, ineligibility for indemnity, or recalculation of

insured revenue. I also understand that failure to report completely and accurately may result in 

sanctions under my policy, including but not limited to voidance of the policy, and in criminal or 

civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C. §3729, §3730 and any 

other applicable federal statutes).”

The Market Animal and Nursery Inventory Report must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.

K. Farm Operation Report

The AIPs are responsible for developing the 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 10 for the FOR required elements and example.

In place of the certification statement in the DSSH, the FOR must include the following 

certification statements immediately above the applicant/insured signature.

“I certify that to the best of my knowledge and belief all of the information on this form is correct. 

I understand that changes to intended commodities grown will result in changes to the insured 

revenue, premium rate, and indemnity. I understand the information on this form may be 

reviewed and audited. I understand that inaccurate information or my failure to retain or provide, 

upon request, records supporting the information on this form may result in denial of coverage, 

cancellation of my policy, ineligibility for indemnity, or recalculation of approved revenue. I also 

understand that failure to report completely and accurately may result in sanctions under my 

policy, including but not limited to voidance of the policy, and in criminal or civil penalties (18 

U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C. §3729, §3730 and any other applicable 

federal statutes).”
December 2021 FCIC -18160 126

Exhibit 5

Form Standards (Continued)

K. Farm Operation Report (continued)

The FOR must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address. 

L. Replant Payment Worksheet

The AIPs are responsible for developing the Replant Payment Worksheet form. The Replant 

Payment Worksheet must be titled “REPLANT PAYMENT WORKSHEET.” The AIPs are not 

authorized to modify or delete any of the required elements. Refer to exhibit 11 for the Replant 

Payment Worksheet required elements and example.

In place of the certification statement in DSSH, the Replant Payment Worksheet must include the 

following certification statement immediately above the applicant/insured signature.

“I certify that to the best of my knowledge and belief all of the information on this form is correct. 

I understand the information on this form may be reviewed and audited. I understand that 

inaccurate information or my failure to retain or provide, upon request, records supporting the 

information on this form may result in denial of coverage, cancellation of my policy, ineligibility 

for indemnity, or recalculation of insured revenue. I also understand that failure to report 

completely and accurately may result in sanctions under my policy, including but not limited to 

voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. 

§1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

The Replant Payment Worksheet form must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.

M. Substitute Schedule F

The Substitute Schedule F is a required document used to document an applicant’s/insured’s farm 

income and expenses for each year the applicant/insured did not file a Schedule F with the IRS. 

This form is used in the same manner as the Schedule F. The Substitute Schedule F is the current 

year Schedule F used by the IRS and must be titled “SUBSTITUTE SCHEDULE F FOR WFRP 

PURPOSES.” Refer to exhibit 13 for the Substitute Schedule F required elements and example. 

In place of the certification statement in DSSH, the Substitute Schedule F must include the 

following certification statement immediately above the applicant/insured signature.
December 2021 FCIC -18160 127

Exhibit 5

Form Standards (Continued)

M. Substitute Schedule F (continued)

“I certify that to the best of my knowledge and belief all of the information on this form is correct. 

I understand the information on this form may be reviewed and audited. I understand that 

inaccurate information or my failure to retain or provide, upon request, records supporting the 

information on this form may result in denial of coverage, cancellation of my policy, ineligibility 

for indemnity, or recalculation of insured revenue. I also understand that failure to report 

completely and accurately may result in sanctions under my policy, including but not limited to 

voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. 

§1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

The Substitutes Schedule F must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.

N. Allowable Expenses Worksheet

The Allowable Expenses Worksheet is a required worksheet the AIPs must use to determine an 

applicant’s/insured’s allowable expenses for each year in the whole-farm history period, and for 

the policy year when determining an indemnity amount. The worksheet assists in identifying and 

documenting required adjustments to applicant’s/insured’s tax reported expenses. The Allowable 

Expenses Worksheet must be titled “ALLOWABLE EXPENSES WORKSHEET.” Refer to

exhibit 14 for the Allowable Expenses Worksheet required elements and example.

In place of the certification statement in DSSH, the Allowable Expenses worksheet must include 

the following certification statement immediately above the applicant/insured signature.

“I certify that to the best of my knowledge and belief all of the information on this form is correct. 

I understand the information on this form may be reviewed and audited. I understand that 

inaccurate information or my failure to retain or provide, upon request, records supporting the 

information on this form may result in denial of coverage, cancellation of my policy, ineligibility 

for indemnity, or recalculation of insured revenue. I also understand that failure to report 

completely and accurately may result in sanctions under my policy, including but not limited to 

voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. 

§1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

The Allowable Expense Worksheet must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.
December 2021 FCIC -18160 128

Exhibit 5

Form Standards (Continued)

O. Allowable Revenue Worksheet

The Allowable Revenue Worksheet is a required worksheet that the AIPs must use to determine 

an applicant’s/insured’s allowable revenue for each year in the whole-farm history period. The 

worksheet assists in identifying and documenting required adjustments to the 

applicant’s/insured’s tax reported revenue. The Allowable Revenue Worksheet must be titled 

“ALLOWABLE REVENUE WORKSHEET.” Refer to exhibit 15 for the Allowable Revenue 

Worksheet required elements and example.

In place of the certification statement in DSSH, the Allowable Revenue Worksheet must include 

the following certification statement immediately above the applicant/insured signature.

“I certify that to the best of my knowledge and belief all of the information on this form is correct. 

I understand the information on this form may be reviewed and audited. I understand that 

inaccurate information or my failure to retain or provide, upon request, records supporting the 

information on this form may result in denial of coverage, cancellation of my policy, ineligibility 

for indemnity, or recalculation of insured revenue. I also understand that failure to report 

completely and accurately may result in sanctions under my policy, including but not limited to 

voidance of the policy, and in criminal or civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. 

§1506; 31 U.S.C. §3729, §3730 and any other applicable federal statutes).”

The Allowable Revenue Worksheet must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.

P. Claim for Indemnity Report

The AIPs are responsible for developing the Claim for Indemnity Report. The Claim for 

Indemnity Report must be titled “CLAIM FOR INDEMNITY REPORT.” The AIPs are not 

authorized to modify or delete any of the required elements. Refer to exhibit 16 for the Claim for 

Indemnity Report required elements and example.

In place of the certification statement in DSSH, the Claim for Indemnity Report must include the 

following certification statement immediately above the applicant/insured signature. 

“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).”
December 2021 FCIC -18160 129

Exhibit 5

Form Standards (Continued)

P. Claim for Indemnity Report (continued)

The Claim for Indemnity Report must be:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.

Q. Expected Value and Yield Source Document Certification Worksheet

The AIPs are responsible for developing the Expected Value and Yield Source Document 

Certification Worksheet. The Expected Value and Yield Source Document Certification 

Worksheet must be titled “EXPECTED VALUE AND YIELD SOURCE DOCUMENT 

CERTIFICATION WORKSHEET.” The AIPs are not authorized to modify or delete any of the 

required elements. Refer to exhibit 20 for the Expected Yield and Value Source Document 

Certification Worksheet required elements and example.

In place of the certification statement in DSSH, the Expected Value and Yield Source Document 

Certification Worksheet must include the following certification statement immediately above the 

applicant/insured signature.

“I certify that to the best of my knowledge and belief all of the information on this form is correct. 

I understand the information on this form may be reviewed and audited, and used to determine my 

loss, if any, for the policy listed above. I understand that inaccurate information or my failure to 

retain or provide, upon request, records supporting the information on this form may result in 

denial of coverage, cancellation of my policy, ineligibility for indemnity, or recalculation of 

insured revenue. I also understand that failure to report completely and accurately may result in 

sanctions under my policy, including but not limited to voidance of the policy, and in criminal or 

civil penalties (18 U.S.C. §1006 and §1014; 7 U.S.C. §1506; 31 U.S.C. §3729, §3730 and any 

other applicable federal statutes).”

The Expected Value and Yield Source Document Certification Worksheet must include:

(1) Collection of Information and Data (Privacy Act) Statement;

(2) Nondiscrimination Statement; and

(3) AIP Name and Address.
December 2021 FCIC -18160 130

Exhibit 6

Whole-Farm History Report

A. Required Elements Description

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(a-e). Tax Year The five consecutive tax years prior to the policy year, not including 

the lag year.

7(a-e). 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).
December 2021 FCIC -18160 131

Exhibit 6

Whole-Farm History Report (Continued)

A. Required Elements Description (continued)

7(a-e) Allowable 

Revenue 

(continued)

(3) For a qualifying person that elects Micro Farm with four years of 

tax records in the whole-farm history period enter:

(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(b-e).

(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(a-e). 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(a-e). Allowable 

Expenses

Enter the allowable expenses that correspond with the tax years 

entered in items 6(a-e) (item 14 of Allowable Expenses Worksheet). 

For Micro Farm, MAKE NO ENTRY.

Exceptions:

(1) For a qualifying person with four years of farm tax forms in their 

whole-farm history period enter:

(a) In item 9(a), the allowable expenses that corresponds to the 

lag year; and

(b) In items 9(b-e), the allowable expenses that correspond to 

the tax year entered in item 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 9(a), the allowable expenses that corresponds to the 

allowable revenue of the tax year that is entered in item 

7(a); and

(b) In item 9(b), the allowable expenses that corresponds the 

allowable revenue entered in item 6(b).

(3) In items 9(c-e), the allowable expenses that correspond with the 

tax years entered in items 6(c-e).
December 2021 FCIC -18160 132

Exhibit 6

Whole-Farm History Report (Continued)

A. Required Elements Description (continued)

Item Required 

Element

Description

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. Total Allowable 

Expenses

Enter the result of adding the allowable expenses for all tax years 

entered in item 6. For Micro Farm, MAKE NO ENTRY.

11. Simple Average

a. Simple Average 

Allowable 

Revenue

Enter the result of dividing item 10a by five. Refer to paragraph 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 paragraph 

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.

15. Expanded 

Operation

If applicable, enter the result of the calculation in subparagraph 71. 

For Micro Farm, MAKE NO ENTRY.
December 2021 FCIC -18160 133

Exhibit 6

Whole-Farm History Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

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. Average Allowable 

Expenses

Enter the sum of the allowable expenses for all tax years (items 

9(a-e) divided by five. For Micro Farm, 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.
December 2021 FCIC -18160 134

Exhibit 6

Whole-Farm History Report (Continued)

A. Required Elements Description (continued)

Item Required 

Element

Description

19. Whole-Farm 

Historic Average 

Enter the greater of item 14 (if elected), 15, 16a, or 16b.

The following required entries are not illustrated on the WFHR example below.

20. Applicant/Insured 

Signature and 

Date

Applicant/insured signature and date. 

21. AIP 

Representative 

Signature and 

Date

AIP Representative signature and date.

Refer to exhibit 5 for required certification and other statements.
December 2021 FCIC -18160 135

Exhibit 6

Whole-Farm History Report (Continued)

B. Example Whole-Farm History Report

The following is an example only. It is an example WFHR. AIPs must develop a WFHR using 

the required elements and statements.

Whole-Farm History Report

1. Producer Information:

I.M. Insured Person Type: Individual

Anytown, USA, 11111

Phone: 999.999.9999 SSN: xxx.xx.xxxx

2. Agency Information: Agent Code: XX

I.M. Agent Policy: xxxx

Anytown, USA 11111

Phone: 111.111.1111

3. Policy Year: 2022 4. IRS Accounting Method: Cash 5. State/County: Michigan/Van Buren

6. Tax Year 7. Allowable Revenue 8. Indexed Revenue 9. Allowable Expenses

a. 2016 $250,500 $331,913 $83,500

b. 2017 $300,256 $379,524 $109,660

c. 2018 $99,350 $119,816 $83,500

d. 2019 $98,750 $113,661 $73,900

e. 2020 $215,515 $236,635 $110,370

10. Total a. $964,371 b. $1,181,549 c. $460,930

11. Simple Average a. $192,874 b. $236,310

12. Revenue Substitution a. $199,544 b. $246,239

13. Revenue Exclusion a. $216,405 b. $266,972

14. Revenue Cup $179,678

15. Expanded Operation $260,380

16. Average a. $216,405 b. $266,972 c. $92,186

17. Indexing: Yes: ☒ No: ☐

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.

19. Whole-Farm Historic Average $266,972
December 2021 FCIC -18160 136

Exhibit 7

Inventory Report

A. Required Elements Description

The following table provides descriptions of the Inventory Report required elements.

Item Required 

Element

Description

PART 1: Producer Information

1. IRS Accounting 

Method:

The accounting method, cash or accrual, the applicant/insured used to file 

Federal income tax with IRS for the policy year.

2. Policy Year: The current policy year. Includes beginning and ending month of fiscal 

year if applicant/insured filed Federal tax on fiscal year basis.

3. Producer 

Information:

Name, address, telephone number, and tax ID, such as social security 

number or employer identification number for the applicant/insured. Also 

includes the person type the applicant/insured used to file their Federal 

taxes.

The applicant/insured must be the same person and person type as the 

person designated on the United States Income Tax form(s).

4. Agency 

Information:

Name, address, telephone number and code number of the agent. Include 

policy number.

5. State/County: State and county where the majority of the total expected revenue for the 

policy year will be derived.

6. Commodity 

Name

Name of each commodity required to be inventoried.

For beginning inventory commodities, include all commodities on hand at 

the beginning of the insurance period that were not sold, or were not under 

contract with a buyer for a specified price, including but not limited to, 

commodities stored on the farm, in commercial storage, and delivered to a 

processor/warehouse but not sold.

For ending inventory commodities, include all commodities produced or 

purchased for resale during the insurance period on hand at the end of the 

insurance period that were not sold, or were not under contract with a buyer 

for a specified price, including but not limited to, commodities stored on 

the farm, in commercial storage, and delivered to a processor/warehouse 

but not sold.

Each different commodity must be on a separate line. In addition, list the 

same commodity on separate line items when the same commodity has 

substantially different value or will be fed.

Example: Part of the production of a commodity is sold to a processor and 

part is sold direct in the fresh market. The value of the 

production sold to a processor is substantially different than the 

value of production sold direct in the fresh market.
December 2021 FCIC -18160 137

Exhibit 7

Inventory Report (Continued)

A. Required Elements Description (continued)

Item Required 

Element

Description

PART 2: Beginning Inventory (First day of the Insurance Period) 

7. Location(s) Location of the commodity.

Example: Insured has corn stored on his farm and potatoes stored at CA 

Storage Inc., a commercial storage facility. The location of the 

corn is the insured’s farm address and the location of the 

potatoes is the address for the CA Storage Inc. warehouse where 

the potatoes are stored.

8. Beginning 

Inventory

Total amount of the commodity produced or purchased for resale in a year 

previous to the current insurance period that was not sold, fed, lost during 

storage, bartered, or otherwise disposed of prior to the beginning of the 

current insurance period, and will be sold, fed, bartered, or otherwise 

disposed of during the current insurance period. Amounts must be in the 

unit of measure in which the commodity is marketed, such as bushels, 

pounds, tons, boxes, cartons, etc. Enter the applicable unit of measure 

immediately after the amount.

Important: Verifiable records supporting the amount reported must be 

provided.

PART 3: Beginning Inventory (Value end of Insurance Period.)

9. Value For beginning inventories of commodities:

(1) sold on or before the end of the insurance period, enter the amount 

received, not less than zero;

(2) bartered on or before the end of the insurance period and the fair 

market price of the barter was reported to IRS, enter “0”;

(3) bartered on or before the end of the insurance period but the price of 

the barter was not reported to IRS, enter the fair market value of the 

barter; 

(4) not sold but will be otherwise disposed of, such as fed, on or before 

the end of the insurance period, enter “0”; and

(5) carried over to the subsequent insurance period, enter the local market 

value, not less than zero, of the commodity on the last day of the 

insurance period.

For claims purposes, beginning inventories will be valued at the:

(1) actual price received if the commodity is sold prior to the time the 

claim is finalized, not less than zero; or
December 2021 FCIC -18160 138

Exhibit 7

Inventory Report (Continued)

A. Required Elements Description (continued)

Item Required 

Element

Description

9. Value 

(continued)

(2) local market value, not less than zero, on the first day of the month in 

which the claim is finalized based on the same applicable source used 

to determine the expected value on the 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 x item 9.

Separate entries are required when the commodity is disposed of in more 

than one method.

Example: Insured had 1,000 bushels of farm stored corn in beginning 

inventory. During the insurance period, he sold 900 bushels, fed 

70 bushels to his pet donkey, and 30 bushels were lost during 

storage. Each amount (900, 70 and 30) is a separate entry.

PART 4: Ending Inventory (Last Day of Insurance Period) 

12. Location Location of the commodity.

Example: Insured has corn stored on his farm and potatoes stored at CA 

Storage Inc., a commercial storage facility. The location of the 

corn is the insured’s farm address and the location of the 

potatoes is the address for the CA Storage Inc. warehouse where 

the potatoes are stored.

13. Ending 

Inventory

Total amount of the commodity produced or purchased for resale in the 

current insurance period that was not sold or otherwise disposed of prior to 

the end of the current insurance period. Amount must be in the unit of 

measure in which the commodity is marketed, such as bushels, pounds, 

tons, boxes, cartons, etc. Enter the applicable unit of measure immediately 

after the amount.

Important: Verifiable records supporting the amount reported must be 

provided.
December 2021 FCIC -18160 139

Exhibit 7

Inventory Report (Continued)

A. Required Elements Description (continued)

Item Required 

Element

Description

14. Average Value For ending inventories, enter the local market value, not less than zero, of 

the commodity on the last day of the insured’s tax period. For 

commodities produced but not intended to be sold, such as livestock feed, 

enter “0.”

For claims purposes, ending inventories will be valued at the local market 

value, not less than zero, on the first day of the month in which the claim 

is finalized based on the same applicable source used to determine the 

expected value on the 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 x item 14, then subtracting the amount in 

item 15 if applicable.

17. Total Beginning 

Value

Total of column 11.

18. Total Ending 

Value

Total of column 16.

PART 5: Inventory Adjustment (To be completed only if a claim is filed)

19. Adjustments Subtract the amount in item 17 from the amount in item 18. The result, 

either a positive or negative number, will be entered in item 26 on the 

Claim for Indemnity Form.

The following required entries are not illustrated on the Inventory Report example below.

20. Applicant/Insured 

Signature and 

Date

Applicant/Insured signature and date.

21. AIP 

Representative 

Signature and 

Date

AIP representative signature and date.

Refer to exhibit 5 for required certification and other statements.
December 2021 FCIC -18160 140

Exhibit 7

Inventory Report (Continued)

B. Example Inventory Report Form

The following is provided as an example only. AIPs must develop an Inventory and Accounts Receivable Report using the required 

elements and statements.

INVENTORY REPORT

PART 1: PRODUCER INFORMATION

1. IRS 

Accounting 

Method: 

Accrual

2. Policy Year: 

2022

3. Producer Information:

I.M. Insured Person Type:

Box 1 Individual

Anytown, USA, 11111

Phone: 999.999.9999 SSN: 

xxx.xx.xxxx

4. Agency Information: Agent Code: XX

I.M. Agent Policy: xxxx

Box 2

Anytown, USA 11111

Phone: 111.111.1111

5. State/County:

Michigan/Van Buren

INVENTORIED COMMODITIES

6. Commodity 

Name

PART 2: Beginning 

Inventory (First Day of 

Insurance Period

PART 3: Beginning Inventory 

(Value End of Insurance 

Period)

PART 4: Ending Inventory (Last Day of the Insurance Period)

7. Location(s) 8. Beginning 

Inventory

9. Value 10. Cost 

or Basis

11. Value 

Received

12. Location(s) 13. Ending 

Inventory

14. Average 

Value

15. Cost 

or Basis

16. Net 

Value

Corn Storage 100 bu. $5.00 -- $500 0 $0

17. TOTAL BEGINNING VALUE $500 18. TOTAL ENDING VALUE $0

PART 5: Inventory Adjustment (To be completed ONLY if a claim is filed)

19. Adjustment:

ITEM 18 AMOUNT: ($0) - ITEM 17 AMOUNT: ($500) = (-$500) Inventory Adjustment. Enter this amount, (+) or (-) in item 22 on the Claim for 

Indemnity Form.
December 2021 FCIC -18160 141

Exhibit 8

Accounts Receivable, Payable, and Prepaid Expenses Report

A. Required Elements Description

The following table provides descriptions of the Accounts Receivable, Payable, and Prepaid 

Expenses Report required elements.

PART 1: PRODUCER INFORMATION

Item Required 

Element

Description

1. Name The name of the applicant/insured.

The applicant/insured must be the same person and person type as the person 

designated on the United States Income Tax form(s).

2. Policy 

Number

The insured’s assigned policy number.

3. Policy Year The current policy year. Includes beginning and ending month of fiscal year if 

applicant/insured filed Federal tax on fiscal year basis.

4. Agency 

Information

The name, address, telephone number, and code number of the agent that 

provides insurance service to the insured.

PART 2: ACCOUNTS RECEIVABLE

5. Commodity 

Name

Name of insured commodity sold at a specified price, but which full payment has 

not been received at the beginning or ending of the insurance period, regardless 

of the location of the commodity.

Example: Insured had sold and delivered 100 pounds of cucumbers to CA 

Processor Inc. for $0.10 per pound. However, at the beginning of the 

insurance period, insured has not received full payment for the 

commodity. The cucumbers are included in item 5 even though they 

were delivered because full payment has not been received.

6. Name and 

Address of 

Buyer

Name of buyer for each commodity in item 5.

7. Beginning 

Amount 

(Dollars)

Total dollar amount receivable for each insured commodity in item 5 that have 

been sold at a specified price but which full payment has not been received at the 

beginning of the insurance period, regardless of the location of the commodity.

Important: Verifiable records supporting the amount must be provided. 

Verifiable records must be provided for each commodity for which 

full payment has not been received.

Example: Insured sold and delivered 100 pounds of cucumbers to CA Processor 

Inc. for $0.10 per pound and 100 pounds of apples to WA Processor 

Inc. for $0.12 per pound. At the beginning of the insurance period, 

the insured has not received full payment for either commodity. 

Insured would report $10.00 in item 7 as the amount receivable for 

cucumbers and $12.00 in item 7 as the amount receivable for apple. 

Insured must provide verifiable records for the cucumbers and apples 

sold.
December 2021 FCIC -18160 142

Exhibit 8

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

A. Required Elements Description (Continued)

Item Required 

Element

Description

8. Ending 

Amount 

(Dollars)

Total dollar amount receivable for each insured commodity in item 5 that has

been sold at a specified price, but which full payment has not been received at the 

end of the insurance period, regardless of the location of the commodity.

Important: Verifiable records supporting the amount must be provided for each 

commodity for which full payment has not been received.

Example: Insured produced and sold 1,000 bushels of corn during the insurance 

period. At the end of the insurance period, the insured has not 

received full payment for the corn. Insured would report $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.

PART 3: ACCOUNTS PAYABLE

11. Commodity 

Name

Name of insured commodity for which expenses have not been paid at the 

beginning of the insurance period, regardless of the location of the commodity.

12. Name and 

Address of 

Creditor

Name of creditor for each commodity in item 11.

13. Beginning 

Amount 

(Dollars)

Total dollar amount payable for each insured commodity in item 11 that have 

unpaid expenses at the beginning of the insurance period, regardless of the 

location of the commodity.

Important: Verifiable records supporting the amount must be provided for each 

commodity for which there are unpaid expenses.

14. Ending 

Amount 

(Dollars)

Total dollar amount payable for each insured commodity in item 11 that have 

unpaid expenses at the end of the insurance period, regardless of the location of 

the commodity.

Important: Verifiable records supporting the amount must be provided for each 

commodity for which there are unpaid expenses.
December 2021 FCIC -18160 143

Exhibit 8

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

A. Required Elements Description (Continued)

Item Required 

Element

Description

15. Balance (14 -

13)

The change in accounts payable for each commodity in item 11. For each 

commodity, subtract the beginning amount (item 13) from the ending amount 

(item 14). The result can be positive or negative.

16. Total Accounts 

Payable 

Adjustments to 

Claim

(Dollars)

Total change in accounts payable from all insured commodities. Sum the result 

of item 11 for each commodity. The result can be positive or negative.

PART 4: PREPAID EXPENSES

17. Beginning 

Prepaid 

Expenses 

Balance

Total dollar amount of balance of prepaid expenses for each insured commodity 

at the beginning of the insurance period.

Important: Verifiable records supporting the amount must be provided for 

each commodity for which there are prepaid expenses.

18. Ending Prepaid 

Expenses

Balance

Total dollar amount of balance of prepaid expenses for each insured commodity 

at the end of the insurance period.

Important: Verifiable records supporting the amount must be provided for 

each commodity for which there are prepaid expenses.

19. Balance (17 -

18)

The change in prepaid expenses. Subtract the ending amount (item 18) from 

the beginning amount (item 17). The result can be positive or negative.

20. Total Prepaid 

Expenses 

Adjustments

Total change in prepaid expenses. Sum all entries in item 19. The result can be 

positive or negative.

21. Total Accounts 

Payable/Prepai

d Expenses 

Adjustments to 

Claim (16 + 

20)

Total change in accounts payable and prepaid expenses for all insured 

commodities. Sum the items 16 and 20. Round to the nearest whole dollar. 

This entry will be transferred to item 13 on the Allowable Expenses Worksheet 

at claim time.

The following required entries are not illustrated on the Accounts Receivable, Payable, and 

Prepaid Expenses Report example below.

22. Applicant/Insu

red Signature 

and Date

Applicant/Insured signature and date.

23. AIP 

Representative 

Signature and 

Date

AIP representative signature and date.

Refer to exhibit 5 for required certification and other statements.
December 2021 FCIC -18160 144

Exhibit 8

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

B. Example Accounts Receivable, Payable, and Prepaid Expenses Report Form 

The following is provided as an example only. AIPs must develop an Accounts Receivable, Payable, and Prepaid Expenses Report using the

required elements and statements.

ACCOUNTS RECEIVABLE, PAYABLE, AND PREPAID EXPENSES REPORT

PART 1: PRODUCER INFORMATION

1. NAME 2. POLICY NUMBER 3. POLICY YEAR 4. AGENCY INFORMATION

I.M. INSURED XXXXXXXXX YYYY I.R. AGENT XXXXX

PART 2: ACCOUNTS RECEIVABLE

5. Commodity Name 6. Name and Address of Buyer 7. Beginning Amount 8. Ending Amount 9. Balance (8 - 7)

10. Total Accounts Receivable Adjustments to Claim

PART 3: ACCOUNTS PAYABLE

11. Commodity Name 12. Name and Address of Creditor 13. Beginning Amount 14. Ending Amount 15. Balance (14 - 13)

16. Total Accounts Payable Adjustments

PART 4: PREPAID EXPENSES

17. Beginning Prepaid Expenses Balance 18. Ending Prepaid Expenses Balance 19. Balance (17 - 18)

20. Total Prepaid Expenses Adjustment

21. Total Accounts Payable/Prepaid Expense Adjustment to Claim (16 + 20)
December 2021 FCIC -18160 145

Exhibit 9

Market Animal and Nursery Inventory Report

A. Required Elements Description

The following table provides descriptions of the Market Animal and Nursery Inventory Report 

form required elements.

Part 1: Producer Information

Item Required Element Description

1. Name The name of the applicant/insured.

The applicant/insured must be the same person and person type as the 

person designated on the IRS Income Tax form(s).

2. Policy Number The insured’s assigned policy number.

3. Policy Year The current policy year. Includes beginning and ending month of fiscal 

year insured is an early or late fiscal year filer.

4. Agency Information The name, address, telephone number, and code number of the agent 

that provides insurance service to the insured.

Part 2: Breeding Livestock

Type of Animal or Commodities

5. Type/Category The type/category of breeding animals. A separate line entry must be 

made for each type of animal.

Section A: Beginning Inventory The First Day Of The Insurance Period

6. Number For each type/category) of animals in Column 5, enter the number on 

hand at the beginning of the insurance period.

Section B: Ending Inventory On The Last Day Of The Insurance Period

7. Number The number of breeding animals on hand at the end of the insurance 

period. If breeding animals in beginning inventory will be carried over 

to the subsequent policy year, enter the number to be carried over. If 

all breeding animals in the beginning inventory on the line were 

disposed of, enter “0.” For breeding animals purchased or produced 

during the insurance period that will be carried over, enter number 

purchased and the number produced on separate lines. If applicable, 

enter the applicable type/category in Column 5.

Part 3: Market Animals or Nursery

Type of Animals or Commodities

8. Type/Category The type/category of animals or commodities (cattle/feeder calves, 

hogs/feeder pigs, turkeys/broilers, chickens/broilers, catfish/stockers, 

etc.).

A separate line entry must be made for each type/category of animal, 

animal products, nursery, or greenhouse commodities. Do not include 

breeding animals that are not intended to be sold during the insurance 

period.

Make a separate line entry for each type/category of animal, nursery, or 

greenhouse commodity that was on hand at the beginning of the 

insurance period and died due to insured causes during the insurance 

period.
December 2021 FCIC -18160 146

Exhibit 9

Market Animal and Nursery Inventory Report (Continued)

A. Required Elements Description (continued)

Section A: Beginning Inventory - First Day of The Insurance Period

8 Type/Category 

(continued)

Make a separate line entry for each type/category of animal, nursery, or 

greenhouse commodity when the cost/basis is greater than the sold 

price of the commodity.

Refer to AD for additional information concerning type/category.

9. Number For each type/category of animals, animal products, nursery, or 

greenhouse commodities in column 9, enter the number on hand at the 

beginning of the insurance period.

10. Average Weight, 

Container Size, etc.

Animals or Animal Products: The average weight at the beginning 

of the insurance period for animals marketed in pounds. For animals 

sold individually or that died (e.g., baby calves or weaning pigs sold by 

the head), enter a dash (-).

Nursery or Greenhouse: The average container size (or other 

applicable unit) at the beginning of the insurance period. For those

nursery or greenhouse commodities that died during the insurance 

period, enter a dash (-).

11. Average Value Animals or Animal Products: Enter:

(1) For animals marketed in pounds, the average value per animal at 

the beginning of the insurance period;

(2) For animals sold individually, the average value per animal at the 

beginning of the insurance period; or

(3) For animals that died due to insured causes during the insurance 

period, a dash (-).

Nursery or Greenhouse: Enter:

(1) For commodities raised or purchased for resale, enter the average 

value per commodity at the beginning of the insurance period; or

(2) For commodities that died during the insurance period, a dash (-).

12. Average Value/Unit The average value per animal, animal products, nursery, or greenhouse 

commodities entered on the line.

(1) For animals marketed in pounds, multiply the average weight 

(column 10) x the average value (column 11).

(2) For animals sold individually and nursery and greenhouse 

commodities enter the same value as column 11.

13. Total $ Value The total value of all the animals, animal products, nursery, or 

greenhouse commodities entered on the line. Multiply the number of 

commodities (column 9) x the average value (column 12).

This value is the cost/basis that is transferred to the FOR.
December 2021 FCIC -18160 147

Exhibit 9

Market Animal and Nursery Inventory Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

14. Actual Cost 

(Claims Only)

For Claim Purposes Only: Enter the actual cost, when purchased, for 

those commodities that were purchased in a previous year(s). If 

commodities listed on the line were not purchased, make no entry.

15. Net Value (Claims 

Only)

Enter the result of subtracting item 14 from item 13. If no entry in item 

14, enter the value from item 13.

Section B: Ending Inventory - Last Day Of The Insurance Period

16. Number Animals or Animal Products: The number of animals on hand at the 

end of the insurance period, including those animals that died due to 

insured causes or the cost/basis was greater than sold price during the 

insurance period. If animals in beginning inventory will be carried 

over to the subsequent insurance period, enter the number to be carried 

over. If all animals in the beginning inventory on the line were

disposed of, enter “0.” For animals purchased or produced during the 

insurance period that will be carried over, enter number purchased and 

the number produced on separate lines.

Nursery or Greenhouse: The number of plants on hand at the end of 

the insurance period, including those commodities that died due to 

insured causes or the cost/basis was greater than sold price during the 

insurance period. If plants in beginning inventory will be carried over 

to the subsequent insurance period, enter the number to be carried over. 

If all plants in the beginning inventory on the line were disposed of, 

enter “0.” For plants purchased or produced during the insurance 

period that will be carried over, enter number purchased and the 

number produced on separate lines.

17. Average Weight, 

Container Size, etc.

Animals or Animal Products: Enter:

(1) For animals marketed in pounds, enter the average weight at the 

end of the insurance period for the type/category reported.

(2) For animals sold individually, being depreciated, or the cost/basis 

is greater than the sold price, a dash (-).

(3) For animals that died due to insured causes during the insurance 

period, transfer the entry from column 10 of the same 

type/category.

Nursery or Greenhouse: Enter:

(1) For plants sold individually or the cost/basis is greater than the 

sold price, a dash (-). 

(2) For plants that died due to insured causes during the insurance 

period, the entry from column 10 of the same type/category.
December 2021 FCIC -18160 148

Exhibit 9

Market Animal and Nursery Inventory Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

18. Average Value Animals or Animal Products: Enter:

(1) For animals marketed in pounds at the end of the insurance 

period, the average value per pound;

(2) For animals sold individually, the average value per animal at the 

end of the tax year;

(3) For animals that died due to insured causes during the insurance 

period, the entry from column 11 of the same type/category; or

(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;

(2) For plants that died due to insured causes during the insurance 

period, the entry from column 11 of the same type/category; or

(3) For plants that have a cost/basis greater than the sold price, the 

result of subtracting the sold price from the cost/basis.

19. Average 

Value/Unit

The average value per animal, animal products, nursery, or greenhouse 

commodities entered on the line.

(1) For animals marketed in pounds, multiply the average weight 

(column 17) x the average value (column 18).

(2) For animals sold individually, and nursery and greenhouse 

commodities, and commodities that have a cost/basis greater than 

the sold price, enter the same value as column 18.

20. Total $ Value Enter the result of multiplying the number of commodities (column 16) 

x 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.
December 2021 FCIC -18160 149

Exhibit 9

Market Animal and Nursery Inventory Report (Continued)

A. Required Elements Description (continued)

Item Required Element Description

Part 4: Inventory Adjustment (To Be Completed Only If A Claim Filed)

25. Adjustment Subtract the amount in item 23 from the amount in item 24. The 

amount can be either a positive number or a negative number. Transfer 

the amount to the Claim for Indemnity for (item 28).

The following required entries are not illustrated on the Market Animal and Nursery Inventory 

Report example below.

26. Applicant/Insured 

Signature and Date

Applicant/Insured Signature and Date @ SCD

27. AIP Representative 

Signature and Date

AIP Representative Signature and Date @ end of insurance period.

Refer to exhibit 5 for required certification and other statements.
December 2021 FCIC -18160 150

Exhibit 9

Market Animal and Nursery Inventory Report (Continued)

B. Example Market Animal and Nursery Inventory Report Form (continued)

The following is provided as an example only. AIPs must develop a Market Animal and Nursery Inventory Report using the required elements 

and statements.

MARKET ANIMAL AND NURSERY INVENTORY REPORT

Part 1: Producer Information

1. NAME 2. POLICY NUMBER 3. POLICY YEAR 4. AGENCY INFORMATION

I.M. INSURED XXXXXXXXX YYYY I.R. AGENT XXXXX

Part 2: Breeding Livestock Only

Type of Animals or 

Commodity

Section A - Beginning Inventory First Day of the Insurance Period Section B - Ending Inventory Last Day of the Insurance Period

Type/Category

5.

Number

6.

Number

7.

Part 3: Market Animals or Nursery

Type of Animals or 

Commodities

Section A - Beginning Inventory First Day of the Insurance Period Section B - Ending Inventory Last Day of the Insurance Period

Type/Category

8.

Number

9.

Average 

Weight or 

Container 

Size

10.

Average 

Value

11.

Average 

Value/Unit

12.

Total $ 

Value

13.

Actual

Cost 

(Claims 

Only)

14.

Net Value 

(Claims 

Only)

15.

Number

16.

Average 

Weight or 

Container 

Size

17.

Average 

Value

18.

Average 

Value/Unit

19.

Total $ 

Value

20.

Cost or 

Basis

21.

Net $ 

Value

22.

Mums 1,000 - $2.00/plant $2.00/Plants $2,000 $500 $1,500 0 - - - - - 0

Hogs 125 hd. 50 lbs. $1.00/lb. $50.00/hd. $6,250 $6,250 0 - - - - - 0

23 Total Beginning Value $7,750 24 Total Ending Value $0

Part 4: Inventory Adjustment (to be completed ONLY if a claim is filed)

25. Adjustment:

Amount in item 24 $0 Amount in item 23 $7,750 = -$7,750 Inventory Adjustment. Enter result, (+) or (-), in item 28 on the Claim for Indemnity Form.
December 2021 FCIC -18160 151

Exhibit 9

Market Animal and Nursery Inventory Report (Continued)

B. Example Market Animal and Nursery Inventory Report Form (continued)

The following is provided as Livestock example only. Refer to the second FOR in exhibit 10 for livestock example.

MARKET ANIMAL AND NURSERY INVENTORY REPORT

Part 1: Producer Information

1. NAME 2. POLICY NUMBER 3. POLICY YEAR 4. AGENCY INFORMATION

I.M. INSURED XXXXXXXXX YYYY I.R. AGENT XXXXX

Part 2: Breeding Livestock Only

Type of Animals or Commodity Section A - Beginning Inventory First Day of the Insurance Period Section B - Ending Inventory Last Day of the Insurance Period

Type/Category

5.

Number

6.

Number

7.

Bulls 3 3

Bred Cows 67 67

Bred Heifers 8 8

Replacement 8 8

Part 3: Market Animals or Nursery

Type of Animals or Commodities Section A - Beginning Inventory First Day of the Insurance Period Section B - Ending Inventory Last Day of the Insurance Period

Type/Category

8.

Number

9.

Average 

Weight or 

Container 

Size

10.

Average 

Value

11.

Average 

Value/Unit

12.

Total $ 

Value

13.

Actual 

Cost 

(Claims 

Only)

14.

Net 

Value 

(Claims 

Only)

15.

Number

16.

Average 

Weight or 

Container 

Size

17.

Average 

Value

18.

Average 

Value/Unit

19.

Total $ 

Value

20.

Cost or 

Basis

21.

Net $ 

Value

22.

Feeders - - - - 34 588 $1.35 $794/hd. $26,996 - $26,996

Feeders 62 590 1.30 $767/hd. $47,554 $47,554 0 - - - - - 0

Bulls (Calves) - - - - 2 - $2,250 $2,250/hd. $4,500 - $4,500

Bulls (yearlings) 2 - $2,250/hd. $2,250/hd. $4,500 $4,500 1 - $5,250 $5,250/hd. $5,250 - $5,250

Bulls (2 Year) 1 - $5,250/hd. $5,250/hd. $5,250 $5,250 0 - - - - 0

Bull (yearling) Deceased 1 $2,250 $2,250/hd. $2,250 $2,250

Cow (basis higher than sold price) 1 1 - $200 $200 $200 $200

Feeders (2019 Purchase) 10 560 $1.30 $728/hd. $7,280 $1,500 $5,780 10 800 $1.19 $952/hd. $9,520 $1,500 $8,020

Feeders (2020 Purchase) 10 580 $1.25 $725/hd. $7,250 $1,650 $5,600

23 Total Beginning Value $63,084 24 Total Ending Value $52,816

Part 4: Inventory Adjustment (to be completed ONLY if a claim is filed)

25. Adjustment:

Amount in item 24 $52,816 Amount in item 23 $63,084 = -$10,268 Inventory Adjustment. Enter result, (+) or (-), in item 28 on the Claim for Indemnity Form.
December 2021 FCIC -18160 152

Exhibit 10

Farm Operation Report

A. Required Elements Description

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 No

Check Yes if the county in which the majority of the expected revenue is 

expected to be earned within the policy year changed. Otherwise, check 

No.

If answer is yes, update county in item 4.

5. Other Insurance: Commodities and corresponding policy numbers by state and county on 

which other Federally reinsured insurance is in force for commodities to be 

insured under WFRP.

Intended

6. Commodity 

Name

Intended: Name of each intended commodity that is or will be purchased 

for resale or produced for revenue during the insurance period. 

Refer to paragraph 48(2)(e) and (f).

Revised: List any additional commodities purchased for resale or 

produced for revenue. Refer to paragraph 49.

7. Commodity 

Code

Enter the commodity code for the intended commodity listed in the AD.

8. Rate Code Enter the rate code for the intended commodity listed in AD.

9. Method of 

Establishment

Method of how the intended commodity is produced, such as acres, head, 

or square feet. For intended commodities that are certified organic, use the 

organic code associated with the method.
December 2021 FCIC -18160 153

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (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 4 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 4 for units of measure.

12. Expected 

Revenue (10x11)

Enter the result of multiplying item 10 times item 11. Enter method of 

establishment immediately after the dollar amount.

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 two decimal places, for field grown 

commodities;
December 2021 FCIC -18160 154

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (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 x $1.00).

Make no entry for commodities added to FOR after SCD.
December 2021 FCIC -18160 155

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (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

[(12x13A) -

13B) x 13C] x 

13D.

(1) Enter the result of multiplying (item 12 x item 13A, minus item 13B) 

x item 13C. Multiply the result by item 13D. Round to the nearest 

whole dollar. If the result is a negative number, enter zero.

(2) If item 7 is the combined direct marketing or micro farm commodity 

code, enter the result of multiplying (item 11 x item 13A, minus item 

13B) x item 13C. Multiply the result by item 13D. Round to the 

nearest whole dollar. If the result is a negative number, enter zero.

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.
December 2021 FCIC -18160 156

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (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 x item 14A minus

item 14B) x 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 x item 14A minus item 

14B) x item 14C. Multiply the result by item 14D. Round to the 

nearest whole dollar. If the result is a negative number, enter zero.
December 2021 FCIC -18160 157

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (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.
December 2021 FCIC -18160 158

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (continued)

Item Required 

Element

Description

20. Total Expected 

Revenue @ 

Revised 

Reporting Date 

(item 17)

Total expected revenue for the farm operation for the policy year. Enter 

the result of item 17.

21. Approved 

Revenue (Lesser 

of item 18 and 19

@ SCD or item 

19 and 20 @ 

RRD)

Approved revenue for the farm operation for the policy year.

21a. Approved 

Revenue @ SCD

Enter the lesser of item 18 or item 19 as of the SCD.

21b. Approved 

Revenue @ 

Revised 

Reporting Date

Enter the lesser of item 19 or item 20 as of the Revised Reporting Date.

22. Approved 

Expenses

Approved expenses for the farm operation for the policy year. For Micro 

Farm, MAKE NO ENTRY.

22a. Approved 

Expenses @ SCD

Approved expenses at SCD. (Refer to subparagraph 72B for approved 

expenses determination.) For Micro Farm, MAKE NO ENTRY.

22b. Approved 

Expenses @ RRD

Approved expenses at RRD. (Refer to subparagraph 72B for approved 

expenses determination.) For Micro Farm, 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/PostProduction 

Operations:

Check “YES” or “NO” as applicable. Refer to paragraphs 142 and 147 

for further instructions.

The following required entries are not illustrated on the FOR example below.

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.
December 2021 FCIC -18160 159

Exhibit 10

Farm Operation Report (Continued)

A. Required Elements Description (continued)

Item Required 

Element

Description

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 5 for required certification and other statement.
December 2021 FCIC -18160 160

Exhibit 10

Farm Operation Report (Continued)

B. Farm Operation Report Form Example

The following is provided as an example only. AIPs must develop a Farm Operations Report using the required elements and statements.
December 2021 FCIC -18160 161

Exhibit 10

Farm Operation Report (Continued)

B. Farm Operation Report Form Example (continued)

The following is provided as an example to include the combined direct marketing commodity code.
December 2021 FCIC -18160 162

Exhibit 10

Farm Operation Report (Continued)

B. Farm Operation Report Form Example (continued)

The following is provided as Livestock example only.
December 2021 FCIC -18160 163

Exhibit 11

Replant Payment Worksheet

A. Required Elements Description

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. Round to two decimal places.
December 2021 FCIC -18160 164

Exhibit 11

Replant Payment Worksheet (Continued)

A. Required Elements Description (Continued)

Item Required Element Description

14. Actual Replant Cost The actual per acre cost to replant the commodity the AIP determines 

from records provided by the insured.

15. Maximum Replant 

Payment

The maximum dollar amount per acre (20% of the expected revenue 

of the commodity (column 10 of the FOR) x coverage level).

16. Replant payment 

per Acre (Lesser of 

Column 14 or 15)

Enter the lesser of the actual replant cost (column 14) or the maximum 

replant payment (column 15).

17. Replant Cost 

Allowed (Column 

13 X Column 16)

Enter the result of the determined acres replanted (column 13) 

multiplied by the replant payment per acre (column 16).

18. Share Enter the insured’s share, 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.

24. Insured’s Signature 

and Date

Insured signature and date.

25. AIP Representative 

Signature and Date

AIP representative’s signature and date.

Refer to exhibit 5 for required certification and other statements.
December 2021 FCIC -18160 165

Exhibit 11

Replant Payment Worksheet (Continued)

B. Replant Payment Worksheet Form Example

The following is provided as an example only. AIPs must develop a Replant Payment Worksheet using the required elements and 

statements.

REPLANT PAYMENT WORKSHEET

1. Policy Year:

2022

2. State/County:

MI / Van Buren

5. Insured Information:

I.M. Insured Person Type:

Box 1 Individual

Anytown, USA, 11111

Phone: 999.999.9999 SSN: xxx.xx.xxxx

6. Agency Information: Agent Code: XX

I.M. Agent 

Box 2

Anytown, USA 11111

Phone: 111.111.1111

7. Companion Policy(s):

NONE

3. Policy Number:

xxxxxxxxxx

4. Claim Number:

xxxxxxx

8. Date of Damage:

MAY 25, 2022

9. Cause of Damage:

HAIL

10. Primary Cause (%):

100%

11. Date(s) of Notice:

5/27/2022

12. Commodity 

Name/Code

13. Determined 

Acres Replanted

14. Actual 

Replant Cost

15. Maximum 

Replant Amount 

16. Replant Payment 

per Acre (Lesser of 

Column 14 or 15)

17. Replant Cost 

Allowed (Column 13 x 

Column 16)

18. Share 19. Replant 

Payment

Corn NIRR/004100 50.00 $75.00 $127.50 $75.00 $3,750 1.0000 $3,750

20. TOTAL $3,750

21. Narrative: Consent given to replant 50 acres of Corn. Actual replant cost verified with insured’s receipts. Maximum replant payment allowed calculation .20 x 

(150bu./acre x $5.00/bu.) x .85(coverage level).

22. Similar Damage on Other Farms in the Area? YES 23. Assignment of Indemnity? NO
December 2021 FCIC -18160 166

Exhibit 12

Schedule F Example

Example of Completed Schedule F Form:
December 2021 FCIC -18160 167

Exhibit 12

Schedule F Example (Continued)

Example of Completed Schedule F Form (continued)
December 2021 FCIC -18160 168

Exhibit 13

Substitute Schedule F Example

A. Use of the Substitute Schedule F

The Substitute Schedule F is a required worksheet used by entities in the business of farming that 

do not complete and file a Schedule F. This form is used to document income and expenses for 

the purpose of WFRP in the same manner as those who file a Schedule F.

B. Required Elements Description

The Substitute Schedule F will be completed by the insured using the instructions provided by the 

IRS for the Schedule F.

The following table provides descriptions of the Substitute Schedule F required elements not 

provided for by the IRS instruction.

Required Element Description

The following required entries are not illustrated on the Substitute Schedule F example below.

Insured’s Signature and Date Insured signature and date.

AIP Representative Signature and Date AIP representative’s signature and date.
December 2021 FCIC -18160 169

Exhibit 13

Substitute Schedule F Example (Continued)

C. Substitute Schedule F Form Example

The following is provided as an example only:

Substitute Schedule F
December 2021 FCIC -18160 170

Exhibit 14

Allowable Expenses Worksheet

A. Use of Allowable Expenses Worksheet

The Allowable Expenses Worksheet (if applicable) is a required worksheet AIPs must use in 

determining an applicant’s/insured’s allowable expenses for each year in the whole-farm history 

period, and for the policy year when determining an indemnity amount. The worksheet assists in 

identifying and documenting required adjustments to the applicant’s/insured’s tax reported 

expenses.

B. Information Directly from Schedule F

Completion of the Allowable Expenses Worksheet (if applicable) requires information taken 

directly from the applicant’s/insured’s Schedule F tax form. The items to be listed in the required 

element titled “Schedule F Part II Expenses” on the Allowable Expenses Worksheet are taken

directly from the list of farm expenses listed in Part II of the Schedule F tax form. The farm 

expenses listed on the Schedule F have changed over time and may change in future years. 

Therefore, the items to be listed in the required element titled “Schedule F Part II Expenses” may 

vary from year to year.

C. Required Elements Description

The following table provides descriptions of the required elements for the Allowable Expenses 

Worksheet.

Note: The descriptions provided in the table are based on the 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 Codes: Codes to identify specific types of adjustments made to expense 

amounts listed on applicant’s/insured’s Schedule F. Enter:

(1) “A = Schedule F expenses specifically excluded”;

(2) “B = Cost of post-production operations”;

(3) “H = Not directly related to production”; and

(4) “I = Other.”

6. Schedule F Part II 

Expenses

List of farm expense items taken directly from Part II of the 

applicant’s/insured’s Schedule F. Enter the farm expenses listed in 

Part II of the applicant’s/insured’s Schedule F for the tax year entered 

in item 4.
December 2021 FCIC -18160 171

Exhibit 14

Allowable Expenses Worksheet (Continued)

C. Required Elements Description (continued)

Item Required Elements Description

7. Schedule F Line 

Number

Line number on the Schedule F for the required entry.

8. Amount on Schedule 

F

Dollar amount entered on Schedule F for each farm expense listed in 

item 6.

For each farm expense item listed in item 6, enter the exact dollar 

amount the applicant/insured entered on their Schedule F for that farm 

expense. Enter “0” if no dollar amount was entered for the farm 

expense on the Schedule F.

9. Expense Adjustment 

Amount and Code

Dollar amount to be subtracted from the dollar amount in item 8, and 

the applicable adjustment code from item 5.

The following farm expenses reported on the Schedule F must be 

excluded from allowable expenses for WFRP purposes. Therefore, 

enter the exact dollar amount the applicant/insured entered on their 

Schedule F for the following farm expenses. Immediately after the 

dollar amount, enter adjustment code “(A).”

(1) Employee benefits program, other than on line 23.

(2) Interest: Mortgage and Other.

(3) Pension and Profit-sharing plans.

(4) Rent or lease: Vehicles, machinery, equipment, and Other (land, 

animals, etc.).

(5) Taxes.

For the farm expense item titled “depreciation and section 179 

expense,” enter the amount of depreciation for everything other than 

animals, immediately followed by adjustment code “(I).”

For each farm expense item not listed above, enter:

(1) the amount equal to the post-production costs, immediately 

followed by adjustment code “(B),” if the amount entered in item 8 

includes post-production costs;

(2) the amount equal to all indirect expenses, immediately followed by 

adjustment code “(H),” if the amount entered in item 8 includes 

any indirect expenses;

(3) the amount equal to all other expenses not allowed to be included 

in allowable expenses for WFRP purposes according to the WFRP 

policy, immediately followed by adjustment code “(I),” if the 

amount entered in item 8 includes any such expenses; and
December 2021 FCIC -18160 172

Exhibit 14

Allowable Expenses Worksheet (Continued)

C. Required Elements Description (continued)

Item Required Elements Description

9. Expense Adjustment 

Amount and Code 

(continued)

(4) “0” if the amount entered in item 8 does not include postproduction costs, indirect expenses, or any other expenses not 

allowed to be included in allowable expenses for WFRP purposes.

Verifiable payroll, processor, or other records must be provided to 

determine the amount of post-production costs, indirect expense, and 

other expense to be enter in item 9.

10. Allowable Expense 

Per Item

Amount of allowable expense for each farm expense listed in item 6. 

Determine the amount of allowable expense for each farm expense 

listed in item 6 by subtracting the amount(s) entered in item 9 from the 

amount entered in item 8.

11. Total Schedule F 

Part II Expenses

Enter the total for:

(1) farm expenses on Schedule F, by summing all amounts in item 8;

(2) expense adjustment amount, by summing all amounts in item 9; 

and

(3) allowable expenses per item, by summing all amounts in item 10.

12. Cost or other basis 

of livestock or other 

items reported on 

line 1a or 37 of the

Schedule F

Cost, or other basis, of animals or other items purchased for resale.

For CASH FILERS enter the exact dollar amount the applicant/insured 

entered in item 1b of Part I, Farm Income, of their Schedule F.

For ACCRUAL FILERS enter the exact dollar amount the 

applicant/insured entered in item 46 of their Schedule F.

13. Accounts Payable 

Adjustment

Enter the amount from item 21 on the Accounts Receivable, Payable, 

and Prepaid Expenses Worksheet. This entry is made only at claim 

time.

14. Allowable Expenses 

for Tax Year

Enter the sum of adding the total for allowable expenses per item (item 

11 entry for column 10) plus items 12 and 13.

The following required entries are not illustrated on the Allowable Expenses Worksheet 

example below.

15. Applicant/Insured 

Signature and Date

Applicant/Insured signature and date.

16. AIP Representative 

Signature and Date

Signature of AIP representative that completed the worksheet, and date 

completed.

Refer to exhibit 5 for required certification and other statements.
December 2021 FCIC -18160 173

Exhibit 14

Allowable Expenses Worksheet (Continued)

D. Allowable Expenses Worksheet Form Example

The following is an example Allowable Expenses Worksheet using farm expenses from 2020

Schedule F or Substitute Schedule F.

Allowable Expenses Worksheet

1. Producer Information:

I.M. Insured Person Type: 

Individual

Box 1 

Anytown, USA, 11111 

Phone: 999.999.9999 

2. Policy Number:

XXXXXX

5. Adjustment Codes:

A = Schedule F expenses specifically 

excluded

B = Cost of post-production operations

H = Not directly related to production 

I = Other

3. State/County:

Michigan/Van Buren

4. Tax Year: 2022

6. Schedule F Part II Expenses 7. Schedule 

F Line 

Number

8. Amount on 

Schedule F

9. Expense Adjustment 

Amount and Code

10. Allowable 

Expense Per 

Item

Car and truck Expenses 10 $3,250 0 $3,250

Chemicals 11 $6,520 0 $6,520

Conservation expenses 12 $2,640 0 $2,640

Custom hire 13 $3,900 0 $3,900

Depreciation and section 179 expense 14 $3,500 $3,500 (I) 

all depreciation was for 

other than animals

0

Employee benefit programs other than on 

line 23

15 0 0 0

Feed 16 $15,000 0 $15,000

Fertilizers and lime 17 $9,200 0 $9,200

Freight and trucking 18 $3,550 0 $3,550

Gasoline, fuel, and oil 19 $9,350 0 $9,350

Insurance (other than health) 20 $3,650 0 $3,650

Interest: Mortgage and Other 21a + 21b $14,500 $14,500 (A) 0

Labor hired 22 $10,300 0 $10,300

Pension and profit-sharing plans 23 0 0 0

Rent or lease: Vehicles, machinery, 

equipment, and Other (land, animals, etc.)

24a + 24b $6,750 $6,750 (A) 0

Repairs and maintenance 25 $5,500 0 $5,500

Seeds and plants 26 $10,410 0 $10,410

Storage and warehousing 27 $95,000 $95,000(B) 0

Supplies 28 $4,780 $2,500 (B) $2,280

Taxes 29 $5,450 $5,450 (A) 0

Utilities 30 $5,550 0 $5,550

Veterinary, breeding, and medicine 31 $4,000 0 $4,000

Other expenses (specify):

Association membership

Computer/software

Legal fees

Commodity Grading

32

$350 0 $350

$750 $750 (H) 0

$950 $950 (H) 0

0 0 0

11. Total Schedule F Part II Expenses $224,850 $129,400 $95,450

12. Cost or other basis of livestock or other items reported on line 1a or 37 of the Schedule F 0 

13. Accounts Payable/Prepaid Expense Adjustment 0

14. Allowable Expenses for Tax Year $95,450
December 2021 FCIC -18160 174

Exhibit 15

Allowable Revenue Worksheet

A. Use of Allowable Revenue Worksheet

The Allowable Revenue Worksheet is a required worksheet that AIPs must use in determining an 

applicant’s/insured’s allowable revenue for each year in the whole-farm history period, and for the 

policy year when determining an indemnity amount. The worksheet assists in identifying and 

documenting required adjustments to the applicant’s/insured’s tax reported income.

B. Information Directly from Schedule F

Completion of the Allowable Revenue Worksheet requires information taken directly from the 

applicant’s/insured’s Schedule F tax form. The items to be listed in the required element titled 

“Schedule F Part I or III Revenue” on the Allowable Revenue Worksheet are taken directly from 

the list of farm revenue listed in Part I (cash) or Part III (accrual) of the Schedule F tax form. The 

farm revenue items listed on the Schedule F has changed over time and may change in future 

years. Therefore, the items to be listed in the required element titled “Schedule F Part I or III 

Revenue” may vary from year to year.

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.
December 2021 FCIC -18160 175

Exhibit 15

Allowable Revenue Worksheet (Continued)

C. Required Elements Description (Continued)

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.
December 2021 FCIC -18160 176

Exhibit 15

Allowable Revenue Worksheet (Continued)

C. Required Elements Description (Continued)

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).”
December 2021 FCIC -18160 177

Exhibit 15

Allowable Revenue Worksheet (Continued)

C. Required Elements Description (Continued)

Item Required Elements Description

9. Revenue Adjustment 

Amount and Code

(continued)

(1) Agricultural Program Payments.

(2) Crop insurance proceeds and crop disaster payments.

(3) Custom hire (machine work) income.

(4) CCC loans repaid (except those repaid by a third-party buyer).

(5) Commodity Credit Corporation (CCC) loans reported under 

election.

FOR CASH FILERS: For farm revenue item “sales of animals and 

other resale items, less the cost, or other basis, of such items,” enter “0” 

because the Allowable Expenses Worksheet accounts for appropriate 

adjustments.

FOR ACCRUAL FILERS: For farm revenue item “sales of animals 

and other resale items, less the cost, or other basis, of such items” enter 

the exact dollar amount the applicant/insured entered in item 46 of their

Schedule F, immediately followed by adjustment code “(A)”;

For farm revenue item “cooperative distributions,” enter the amount of 

such distributions that are not directly related to the production of 

commodities insured under the WFRP policy immediately followed by 

adjustment code “(C).”

For farm revenue item “other income, including federal and state 

gasoline or fuel tax credit or refund,” enter the amount equal to the 

revenue received from federal and state gasoline or fuel tax credits or 

refunds, immediately followed by an adjustment code “(A).” Also

enter any amount that meets any of the conditions listed below for any 

other revenue identified in this farm revenue item.

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
December 2021 FCIC -18160 178

Exhibit 15

Allowable Revenue Worksheet (Continued)

C. Required Elements Description (Continued)

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 post-production 

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.

13. Applicant/Insured 

Signature and Date

Applicant/Insured signature and date.

14. AIP Representative 

Signature and Date

Signature of AIP representative that completed the worksheet, and date 

completed.

Refer to exhibit 5 for required certification and other statements.
December 2021 FCIC -18160 179

Exhibit 15

Allowable Revenue Worksheet (Continued)

D. Allowable Revenue Worksheet Example

The farm expenses listed on the Schedule F has changed over time and may change in future 

years. Therefore, the items to be listed in the required element titled “Schedule F Part I Income” 

may vary from year to year. The following example Allowable Revenue Worksheet provides the 

farm revenue items listed on the 2020 Schedule F.

Allowable Revenue Worksheet 

1. Producer Information:

I.M. Insured Person Type: Individual

Box 1 

Anytown, USA, 11111 Phone: 999.999.9999

2. Policy Number:

XXXXXX

3. State/County:

Michigan/Van Buren 

4. Tax Year: 2022

5. Adjustment Codes:

A = Schedule F income specifically excluded

B = Cost of post-production operations

C = Co-op distributions not directly related

G = Net gain from commodity hedges

H = Not directly related to production 

I = Other

6. Schedule F Part I (cash) or III (accrual) Revenue 7.

Schedule 

F Line 

Number

8. Amount on 

Schedule F

9. Revenue 

Adjustment Amount 

and Code

10. 

Allowable 

Revenue Per 

Item

a. Sales of animals and other resale items, less the 

cost or other basis of such items

1c or 37 0 0

b. Sales of livestock, produce, grains, and other 

products you raised

2 or 37 $192,400 $96,100 (B)

(for S&W and

packing supplies)

$96,300

c. Cooperative distributions 3b or 38b $3,800 $3,240 (C) $560

d. Agricultural program payments 4b or 39b $18,200 $18,200 (A) $0

e. Commodity Credit Corporation (CCC) loans 

reported under election 

5a or 40a

0 0 0

f. CCC loans forfeited 5c or 40c 0 0 0

g. Crop insurance proceeds and federal crop 

disaster payments

6b or 41 $31,875 $31,875 (A) 0

h. Custom hire (machine work) income 7 or 42 $5,000 $5,000 (A) 0

2i. Other income, including federal and state 

gasoline or fuel tax credit or refund:

Federal and state gasoline or fuel tax credit or 

refund

8 or 43 $2,400 $2,400 (A) 0

Income from bartering $200 0 $200

Payments from buyers of commodities for 

bypassed acreage

$1,000 0 $1,000

Payments from marketing orders $1,000 0 $1,000

11. Total Schedule F Part I or III Revenue $255,875 $156,815 $99,060

12. Allowable Revenue for Tax Year $99,060
December 2021 FCIC -18160 180

Exhibit 16

Claim for Indemnity Form

A. Required Elements Description

The following table provides descriptions of the Claim for Indemnity Report required elements.

Item Required Elements Description

1. Policy Year: The current policy year. Includes beginning and ending month of 

fiscal year if applicant/insured filed Federal tax on fiscal year basis.

2. State/County: State and county where the majority of the total expected revenue for 

the policy year will be derived.

3. Policy Number: Policy number for which indemnity is being calculated.

4. Claim Number: Claim Number assigned by the AIP.

5. Insured Information: Name, address, telephone number, and tax ID, such as social security 

number or employer identification number for the insured. Also 

includes the person type the insured used to file their Federal taxes.

The insured must be the same person and person type as the person 

designated on the United States Income Tax form(s).

6. Agency Information: Name, address, telephone number and code number of the agent. 

Include policy number.

7. Companion 

Policy(s):

List of producers, other than the insured, that have WFRP coverage on 

any of the commodities covered under the insured’s policy.

Enter “NONE” when the insured has 100 percent share in all 

commodities insured under their WFRP policy, or when all other 

producers with an interest in the commodities do not have a WFRP 

policy.

8. Date of Damage: Month and year in which most of the damage causing a loss in revenue 

occurred. Enter the specific date of damage when known, such as 

damage from hail, fire or flood.

9. Cause of Damage: Event(s) that caused the damage resulting in loss of revenue. Cause 

must be an insurable cause of loss. List all insurable causes that 

created damage. Describe cause of loss in narrative, item 28, if 

additional space is required.

10. Primary Cause (%): Percentage of the primary cause of the damage, when more than one 

insurable cause created the damage. Must be whole percent and 

exceed 50 percent.

11. Dates of Notice: Date(s) insured provided notice of loss.

12. Allowable Expenses 

for Policy Year

Whole dollar amount of allowable expenses for the policy year. Enter 

amount from item 14 of the Allowable Expenses Worksheet for the 

policy year. For Micro Farm, MAKE NO ENTRY.

13. Approved Expenses Approved expenses for the policy year, as calculated after making all 

required adjustments. Enter the amount from item 22b on the FOR. 

For Micro Farm, MAKE NO ENTRY.
December 2021 FCIC -18160 181

Exhibit 16

Claim for Indemnity Form (Continued)

A. Required Elements Description (continued)

Item Required Elements Description

14. Expense Percentage 

(12/13)

Percentage amount used to determine the percentage amount of 

reduction in approved revenue, if applicable. Divide the allowable 

expenses for the policy year (item 12) by the approved expenses for the 

policy year (item 13). Enter as a three decimal place number. Refer to

paragraph 103. For Micro Farm, MAKE NO ENTRY.

15. Expense Reduction 

Percentage

Percentage amount used to determine the percentage amount of 

reduction in approved revenue, if applicable. If the result of item 14 is 

equal to or greater than .700, enter 1.000. If the result of item 14 is less 

than .700, subtract the result of step 14 from .700. The result must not 

be less than zero. Refer to paragraph 103. For Micro Farm, MAKE 

NO ENTRY.

16. Expense Reduction 

Factor

Percentage amount used to reduce the Approve Revenue, if applicable. 

If item 15 equals 1.000, enter 1.000. Otherwise enter the result of 

subtracting the item 15 from 1.000. For Micro Farm, enter “1.000.”

17. Approved Revenue Approved revenue for the policy year. Enter amount from item 21b on 

the FOR.

18. Approved Revenue 

Adjusted for 

Expenses Not 

Incurred

Approved Revenue adjusted for expenses not incurred. Multiply item 

16 by item 17. Round to the nearest whole dollar.

19. Coverage Level Coverage level elected by insured.

20. Insured Revenue The amount of revenue insured under WFRP. Enter result of item 18 

by item 19. Round to nearest whole dollar.

21. Other Indemnities The total of all indemnities received from insurance policies not 

authorized by the Act.

22. Deductible The amount of revenue not insured by the WFRP policy. Enter the 

result of subtracting approved revenue times coverage level from the 

approved revenue. Item 17 - (item 17 x coverage level).

23. Deductible Adjusted 

for Expenses not 

Incurred (22 x 16)

The amount of revenue not insured by the WFRP policy adjusted for 

expenses not incurred, if applicable. Enter the result of multiplying 

item 22 by item 16.

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 23 is equal to or greater than item 21, enter “0.” If item 

23 if less than item 21, enter the result of subtracting item 23 from item

21.

25. Allowable Revenue 

for Policy Year

Allowable revenue for the policy year. Enter the amount from item 12 

on Allowable Revenue Worksheet for the policy year. Refer to

paragraphs 44 and 45.

26. Inventory 

Adjustment

Total dollar amount of adjustments made for policy year for 

inventoried commodities from Inventory Report. Enter the amount 

from item 19 on the Inventory Report. This amount may be positive or 

negative.
December 2021 FCIC -18160 182

Exhibit 16

Claim for Indemnity Form (Continued)

A. Required Elements Description (continued)

Item Required Elements Description

27. Accounts Receivable 

Adjustment

Total dollar amount of adjustments made for policy year for accounts 

receivable on Accounts Receivable, Payable, and Prepaid Expenses

Report. Enter the amount from item 10 on the Accounts Receivable, 

Payable, and Prepaid Expenses Report. This amount may be positive 

or negative.

28. Market Animal and 

Nursery Adjustment

Total dollar amount of adjustments made for the policy year for 

animals and nursery commodities on the Market Animal and Nursery 

Inventory Report. Enter the amount from item 22 on the Market 

Animal and Nursery Inventory Report. This amount may be positive or 

negative.

29. All other 

Adjustments

Total dollar amount of adjustments made for policy year for all 

adjustments (do not include adjustments from items 26-28). 

Adjustment include but are not limited to:

(1) value assigned for uninsured cause of loss;

(2) value assigned for abandoned acreage/commodities;

(3) indemnities from other crop insurance policies;

(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).

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.

(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.

All other adjustments must be documented in the Narrative or on a 

Special Report and attached to the Claim for Indemnity Form.
December 2021 FCIC -18160 183

Exhibit 16

Claim for Indemnity Form (Continued)

A. Required Elements Description (continued)

Item Required Elements Description

30. Revenue-to-Count 

(25+26+27+28+29)

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.”

The following required entries are not illustrated on the Claim for Indemnity Report example 

below.

37. Applicant/Insured’s 

Signature and Date

Insured signature and date.

38. AIP Representative

Signature and Date

AIP representative’s signature and date.

Refer to exhibit 5 for required certification and other statements.
December 2021 FCIC -18160 184

Exhibit 16

Claim for Indemnity Form (Continued)

B. Example Claim for Indemnity Form

The following is provided as an example only. AIPs must develop a Claim for Indemnity Form using the required elements and statements.

CLAIM FOR INDEMNITY FORM

1. Policy Year:

2022

2. State/County:

MI / Van Buren

5. Insured Information:

I.M. Insured Person Type:

Box 1 Individual

Anytown, USA, 11111

Phone: 999.999.9999 SSN: xxx.xx.xxxx

6. Agency Information: Agent Code:

XX

I.M. Agent 

Box 2

Anytown, USA 11111

Phone: 111.111.1111

7. Companion Policy(s):

NONE

3. Policy 

Number:

xxxxxxxxxx

4. Claim 

Number:

xxxxxxx

8. Date of Damage:

July 2022

9. Cause of Damage:

Drought

10. Primary Cause (%):

100

11. Date(s) of Notice:

8/1/2022

CALCULATION OF CLAIM

12. Allowable 

Expenses for 

Policy Year

13. Approved 

Expenses 

14. Expense 

Percentage

(12/13)

15. Expense 

Reduction 

Percentage

16. Expense 

Reduction 

Factor

17. Approved 

Revenue

18. Approved 

Revenue 

Adjusted for 

Expenses Not 

Incurred

(16 x 17)

19. 

Coverage 

Level

20. Insured Revenue

(18 x 19)

$95,450 $107,120 .891 1.000 1.000 $160,750 $160,750 85% $136,638

21. Other 

Indemnities

$9,000 22. Deductible $24,112 23. Deductible Adjusted for 

Expenses not Incurred (22 x 16)

$24,112 24. RTC 

Adjustment

0

25. Allowable 

Revenue for Policy 

Year

26. Inventory 

Adjustment

27. Accounts 

Receivable 

Adjustment

28. Market Animal and 

Nursery Adjustment

29. All Other 

Adjustments

30. Revenue-toCount

(25+26+27+28+29)

31. Revenue Loss

(20 - 30)

$99,060 -$500 $0 -$7,750 $30,075 $120,885 $15,753

32. Narrative: Item 29 is the sum of MPCI indemnity and uninsured cause of loss revenue adjustment.

33. Date Policy Year IRS Federal Income Taxes Filed: 

4/15/23

34. Similar Damage on Other Farms in the Area? YES 35. Assignment of Indemnity? NO
December 2021 FCIC -18160 185

Exhibit 17

Inventory Valuation Guidelines

A. Unit of Measure

Commodities listed in inventory must be listed in the unit of measure, such as bushels, pounds, 

tons, boxes, etc., in which the commodity will be marketed. Refer to exhibit 4 for units of 

measure, abbreviations, and the numeric code for RMA processing.

B. Local Market Value

Values listed for inventoried commodities, regardless of which inventory report applies, should be 

local market values from sources in the expected values section of the policy and exhibit 18. AIPs

must ensure that values are realistic and consistent with actual local market values supported by 

verifiable or direct marketing sales records.

The local market value must not include any amounts for post-production operations. Refer to

exhibit 2 for the definition of post-production operations.

C. Animals, Animal Products and Nursery Commodities Held to Realize Gain 

Inventories for animals, animal products and nursery and greenhouse will be recorded on the 

Market Animal and Nursery Inventory Report.

(1) Beginning inventories will be valued using the expected value guidelines on:

(a) January 1 of the policy year for insured’s who file taxes on a calendar year basis; and

(b) the first day of the month in which the fiscal year begins for insured’s who file taxes 

on a fiscal year basis.

(2) Ending inventories will be valued at the using the expected value guidelines on:

(a) December 31 of the policy year for insured’s who file taxes on a calendar year basis; 

and

(b) the last day of the month in which the fiscal year ends for insured’s who file taxes on a 

fiscal year basis.

D. Commodities Purchased for Resale

The value of inventoried commodities purchased for resale during the insurance period must not 

include the cost, or other basis, of the commodity purchased.
December 2021 FCIC -18160 186

Exhibit 17

Inventory Valuation Guidelines (Continued)

E. Commodities Other Than Commodities Held to Realize Gain, Purchased for Resale, 

Animals, Animal Products, Nursery, and Greenhouse

(1) Beginning and ending inventories will be valued at the end of the insurance period, unless 

there is a claim, on the Inventory Report at the:

(a) actual price received if the commodity is sold prior to the end of the insurance period; 

or

(b) local market value on:

(i) December 31 of the policy year for insured’s who file taxes on a calendar year 

basis; or

(ii) the last day of the month in which the fiscal year ends for insured’s who file 

taxes on a fiscal year basis.

(2) For claims purposes, beginning and ending inventories will be valued (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.
December 2021 FCIC -18160 187

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 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 4 for units of measure, abbreviations, and the numeric code for RMA 

processing.
December 2021 FCIC -18160 188

Exhibit 18

Expected Value and Yield Guidelines (Continued)

B. Expected Value (continued)

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):

(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.
December 2021 FCIC -18160 189

Exhibit 18

Expected Value and Yield Guidelines (Continued)

B. Expected Value (continued)

(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.

(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.

(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 table provides the methods and sources for determining and reviewing 

expected values for commodities, in order of priority:

IF the commodity ... THEN use ...

is under a marketing contract The price contained in the marketing contract.

Refer to subparagraph B(5) for more information.

is produced and sold during the current 

insurance period, but prior to the time the 

IFOR is completed

The actual sale price the commodity was sold for.
December 2021 FCIC -18160 190

Exhibit 18

Expected Value and Yield Guidelines (Continued)

B. Expected Value (continued)

IF the commodity ... THEN use ...

is not under a marketing contract to be 

sold at a specified price and has not been 

sold during the insurance period prior to 

the IFOR being completed

The price that the AIP agrees best reflects the price 

the insured can expect to receive on the insured’s 

farm and for the market where the commodity will 

be sold, obtained from the most applicable 

following source for the insured’s farm operation 

(the following sources do not have an order of 

priority):

Prices reported by AMS, including Market News 

Reports, NASS, ERS, or other government agency

for the commodity in the area where the 

applicant/insured normally sells the commodity. 

Prices that represent open market sales by first 

handlers, i.e., shipping point prices, generally 

include post-production costs that must be removed 

from the expected value, if applicable.

Example: The AMS price reported for a variety of 

apples in the area is $17.00 per box. 

The post-production expenses are 

$12.00 per box. The price the insured 

can expect to receive is $5.00 per box.

The FCIC published price 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.

Example: The FCIC published price for potatoes is 

$15.00 per hundredweight. The postproduction costs are $5.00 per 

hundredweight. The price the insured 

can expect to receive is $10.00 per 

hundredweight.

The current local, average, cash bid price for the 

commodity in the local area for the month of 

harvest where the insured normally sells the 

commodity.
December 2021 FCIC -18160 191

Exhibit 18

Expected Value and Yield Guidelines (Continued)

B. Expected Value (continued)

IF the commodity ... THEN use ...

is not under a marketing contract to be 

sold at a specified price and has not been 

sold during the insurance period prior to 

the IFOR being completed (continued)

The average new crop price offered by at least two 

commercial buyers, one selected by the insured and 

one by the AIP.

Prices from a reliable disinterested third-party 

source that the AIP approves. Refer to 

subparagraph B(6)(b). These prices may include 

post-production costs that must be removed.

is not under a marketing contract to be 

sold at a specified price, has not been 

sold during the insurance period prior to 

the IFOR being completed, and no 

disinterested third-party source exists

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).

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

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.
December 2021 FCIC -18160 192

Exhibit 18

Expected Value and Yield Guidelines (Continued)

B. Expected Value (continued)

(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

(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;

(iv) At the time the expected value is determined in accordance with section 17(c)(4) 

of the WFRP policy. For example, if FCIC published a price for the commodity 

in November which is significantly different from the price the insured can

reasonably expect to receive at harvest at the time the insured submits their IFOR

the following March, the AIP will not agree to using the FCIC published price to 

determine the expected value;

(v) Must be recorded on the Expected Yield and Value Source Document 

Certification Worksheet; and

(vi) 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;
December 2021 FCIC -18160 193

Exhibit 18

Expected Value and Yield Guidelines (Continued)

B. Expected Value (continued)

(iv) Marketing Cooperative Reports; and

(v) Futures Market Prices for the month of harvest with basis removed to adjust to 

the local market basis.

Important: The policy does NOT allow the use of alternative insurance prices that 

may be offered by privately administered non-reinsured supplemental 

products that are available.

C. Expected Yield

(1) Expected Yield by Commodity

Each commodity by rate code, if applicable, the insured intends to produce in the insurance 

period must be listed on a separate line on the 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:
December 2021 FCIC -18160 194

Exhibit 18

Expected Value and Yield Guidelines (Continued)

C. Expected Yield (continued)

(i) the impact on yield caused by the existence of any disease and the lack of or 

excessive pruning prior to or during the insurance period;

(ii) when perennial commodities with underlying coverage under another FCIC 

policy have insurable tree or vines that were planted/set out, grafted, or dehorned 

in the orchard, vineyard, grove, or bog and insured reports a yield greater than 

the average yield for the underlying coverage. Blocks where expected yields are 

adjusted from what is reported on the underlying coverage due to planting, 

grafting, dehorning, etc. should be recorded on the Expected Value and Yield 

Source Document Certification Worksheet separately. Refer to paragraph 22.

(iii) any alternate bearing or downward trending tendencies of the insured 

commodity.

(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.
December 2021 FCIC -18160 195

Exhibit 18

Expected Value and Yield Guidelines (Continued)

C. Expected Yield (continued)

(3) The following table provides the methods and sources for determining and reviewing 

expected yields for commodities:

IF the commodity 

is ...

AND ... THEN the expected yield...

insured by another 

policy offered 

under the Act that 

provides 

individual yield or 

ARH coverage in 

the county where 

the commodity 

will be produced

the insured:

(1) cannot provide detailed 

documentation based on their 

past production practices and 

any changes to the production 

practices during the insurance 

period the AIP agrees 

demonstrates a higher or 

lower expected yield; or

(2) has produced the commodity 

in years prior to the first year 

of your whole-farm history 

period and the AIP agrees the 

years prior to your whole-farm 

history period does reflect the

yield the insured can expect to 

produce during the insurance 

period.

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.

the insured provides detailed 

documentation based on their past 

production practices and any 

changes to the production practices 

during the insurance period the AIP 

agrees demonstrates a higher or 

lower expected yield. Actual yield 

data under the new practice must be

provided and serve as the base for 

the expected yield.

may be based on the expected yield 

determined by the AIP to be 

appropriate based on the provided 

documentation and the average 

yields produced under the new 

production practice approved by 

the AIP.

the insured has produced the 

commodity in years prior to the 

first year of your whole-farm 

history period and the AIP agrees 

the years prior to your whole-farm 

history period do not reflect the 

yield the insured can expect to 

produce during the insurance 

period.

may be an expected yield, as 

determined by the AIP, using all 

years within the whole-farm history 

period, including the lag year, if 

available when the IFOR is 

submitted.
December 2021 FCIC -18160 196

Exhibit 18

Expected Value and Yield Guidelines (Continued)

C. Expected Yield (continued)

IF the commodity 

is ...

AND ... THEN the expected yield...

not insured under 

an individual yield

or ARH coverage 

policy

(1) has been produced on the 

insured’s farm operation 

during the whole-farm history 

period, including the lag year;

(2) the insured has at least four 

years of production history of 

the commodity in their wholefarm history period, including 

the lag year; and

(3) the insured provides yield 

records for all four years 

preceding the insurance 

period, including the lag year.

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.

(1) has been produced on the 

insured’s farm operation; and

(2) the insured cannot provide at 

least four years of production 

history for the four years 

preceding the insurance year, 

including the lag year; and

(3) the insured 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.

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:

(1) using the provided yield 

records for production history 

for the lag year; and

(2) for the remaining year(s) of 

the four years preceding the 

insurance year the insured 

cannot provide yield records, 

a replacement yield will be 

entered using the most 

applicable following source 

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;
December 2021 FCIC -18160 197

Exhibit 18

Expected Value and Yield Guidelines (Continued)

C. Expected Yield (continued)

IF the commodity 

is ...

AND ... THEN the expected yield...

not insured under 

an individual yield 

or ARH coverage 

policy (continued)

(b) Yields published or used 

by other USDA 

programs (e.g., yields 

used to establish NAP 

coverage); or

(c) Yield information 

provided by participants 

in the Cooperative 

Extension System, or a 

successor organization 

that does not include:

(i) university yield 

trial data; or

(ii) crop budget 

reports.

(1) has been produced on the 

insured’s farm operation; and

(2) the insured is a carryover 

insured; and 

(3) the expected yield of the prior 

year’s policy was determined 

using a replacement yield and 

available yield records; and

(4) the insured does not provide 

yield records for any year 

after they previously provided 

yield records for the most 

recent years within the four 

years preceding the insurance 

year, including the lag year.

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:

(1) using the previously provided 

yield records for production 

history for the most recent 

years within the four years 

preceding the insurance year,

including the lag year;

(2) 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 provided 

yield records for production 

history for the most recent 

four years preceding the 

insurance year, including the 

lag year:
December 2021 FCIC -18160 198

Exhibit 18

Expected Value and Yield Guidelines (Continued)

C. Expected Yield (continued)

IF the commodity 

is ...

AND ... THEN the expected yield...

not insured under 

an individual yield 

or ARH coverage 

policy (continued)

(a) FCIC published 

transitional yields in the 

county or nearest county 

with similar agronomic 

conditions to the county 

where commodity will 

be produced;

(b) Yields published or used 

by other USDA 

programs (e.g., yields 

used to establish NAP 

coverage); or

(c) Yield information 

provided by participants 

in the Cooperative 

Extension System, or a 

successor organization 

that does not include:

(i) university yield 

trial data; or

(ii) crop budget 

reports; and

(3) using a zero yield for each 

year after the insured 

previously 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.

(1) has been produced on the 

insured’s farm operation; and

(2) the insured is a carryover 

insured; and

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:
December 2021 FCIC -18160 199

Exhibit 18

Expected Value and Yield Guidelines (Continued)

C. Expected Yield (continued)

IF the commodity 

is ...

AND ... THEN the expected yield...

not insured under 

an individual yield 

or ARH coverage 

policy (continued)

(3) the expected yield of the prior 

year’s policy was determined 

solely using a replacement 

yield; and

(4) the insured does not provide 

yield records for the lag year

if the commodity was 

produced;

(1) using a replacement yield for 

the years prior to the lag year 

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:

(i) university yield 

trial data; or

(ii) crop budget 

reports; and

(3) using a zero yield for the lag 

year.
December 2021 FCIC -18160 200

Exhibit 18

Expected Value and Yield Guidelines (Continued)

C. Expected Yield (continued)

IF the commodity 

is ...

AND ... THEN the expected yield...

not insured under 

an individual yield 

or ARH coverage 

policy (continued)

(1) The insured is not a carryover 

insured; and

(2) the commodity has not been 

produced on the insured’s 

farm operation; or

(3) has been produced and the 

insured cannot provide any 

yield records for the 

production history for most 

recent years within the four 

years preceding the insurance 

year, including the lag year.

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:

(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.

an expected yield cannot be 

established

will be zero.
December 2021 FCIC -18160 201

Exhibit 18

Expected Value and Yield Guidelines (Continued)

D. Expected Value and Yield Corrections

(1) At any time, the AIP determines the price or yield used to establish the expected revenue of 

a commodity does not reflect the price the insured could have expected to receive when the 

commodity was harvested or the yield the insured could expect to produce on their farm 

operation under normal growing conditions, the AIP will correct the price or yield used to 

establish the expected revenue to:

(a) a price consistent with the amount the insured can expect to receive for the amount of 

the commodity the insured will harvest in the market where the commodity will be 

sold if the price:

(i) includes post-production expenses; or

(ii) is significantly different (at least 10 percent) from the other prices received for 

the commodity in the local market where the commodity is sold, and the insured 

cannot demonstrate the price difference is due to an insured COL.

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.
December 2021 FCIC -18160 202

Exhibit 19

Direct Marketing Sales Records

The following forms are examples only form commodities not considered combined direct marketing.

Estimated Daily Commodity Receipts

1. INSURED’S NAME 2. DATE

I.M. INSURED JUNE 11, 2022

3. NAME OF MARKET 4. TOTAL CASH RECEIPTS

FARMERS MARKET $524.00

5. CROP 6. ESTIMATED PERCENT 

OF TOTAL CASH 

RECEIPTS

7. REVENUE PER CROP 

APPLES 15% $78.60

BEANS 30% $157.20

CARROTS 40% $209.60

POTATOES 15% $78.60

8. TOTAL 100% $524.00

9. Remarks
December 2021 FCIC -18160 203

Exhibit 19

Direct Market Sales Records (Continued)

DAILY MARKET RECORD

1. Insured’s Name 2. Date

I.M. Insured June 11, 2022

3. Name of Market 4. Total Cash Receipts

Anytown Farmers Market $620.00

5. Commodity 6. Amount 

Taken To 

Market

7. Amount 

Returned Home

8. Amount 

Sold

9. Today’s 

Price

10. Revenue 

By Commodity

Apples 100 Lbs. 25 Lbs. 75 Lbs. $1.00 $75.00

Beans 100 Lbs. 15 Lbs. 85 Lbs. $2.00 $170.00

Carrots 100 Lbs. 31 Lbs. 69 Lbs. $3.00 $207.00

Red Potatoes 100 Lbs. 4 Lbs. 96 Lbs. $0.75 $72.00

White Potatoes 100 Lbs. 4 Lbs. 96 Lbs. $1.00 $96.00

11. TOTAL $620.00

12. Remarks:
December 2021 FCIC -18160 204

Exhibit 20

Expected Value and Yield Source Document Certification Worksheet

A. Required Elements Description

The following table provides descriptions of the Expected Value and Yield Source Document 

Certification Worksheet required elements.

Expected Value and Yield Source Document Certification Worksheet

Part 1: Producer Information

Item Required Element Standard

1. Name: The name of the insured as it appears on the application.

2. Policy Number: The insured’s assigned policy number.

3. Policy Year: The current policy year. Includes beginning and ending month of 

fiscal year if insured is an early or late fiscal year filer.

4. Agency 

Information:

The name, address, telephone number, and code number of the agent 

that provides insurance service to the insured.

Part 2: Commodity Information

5. Commodity Enter the name of the insured commodity and commodity code.

6. Commodity Code Enter the commodity code for the intended commodity listed in the 

AD.

7. Rate Code Enter the rate code for the intended commodity listed in AD.

8. Practice Enter the practice, if applicable.

9. Type Enter the type of the commodity, if applicable.

10. Variety Enter the variety of the commodity, if applicable.

11. Unit of Measure Enter the unit of measure consistent with how the commodity is 

marketed.

12. Expected Yield Enter the expected yield per method of establishment the producer can 

expect during the insurance period. Refer to exhibit 18. 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.
December 2021 FCIC -18160 205

Exhibit 20

Expected Value and Yield Source Document Certification Worksheet (Continued)

A. Required Elements Description (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, rounded to two decimal 

places, for each year listed in item 17, of all commodities reported as 

Combined Direct Marketing or Micro Farm.

19. Revenue Enter the allowable revenue, rounded to two decimal places, 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. Round each entry to two decimal places.

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, rounded to two 

decimal places.

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.

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 5 for required certification and other statements.
December 2021 FCIC -18160 206

Exhibit 20

Expected Value and Yield Source Document Certification Worksheet (Continued)

B. Example Expected Value and Yield Source Document Certification Worksheet

The following is provided as an example only. AIPs must develop an Expected Value and Yield Source Document Certification Worksheet 

using the required elements and statements.

Expected Value and Yield Source Document Certification Worksheet

Part 1: Producer Information

1. Name: I.M Insured 2. Policy Number: 

XXXXXX

3. Policy Year: YYYY/Mar.-

Feb.

4. Agency Information: I.M Agent

Part 2: Commodity Information

5.

Commodity 

Name

6.

Commodity 

Code

7.

Rate 

Code

8.

Practice

9.

Type

10.

Variety

11.

Unit of

Measure

12.

Expected 

Yield

13.

Source 

14.

Expected 

Value

15.

Source

Corn 04100 1002 NIRR Grain NA Bushels 180.0 MPCI Avg

yield $3.75 FCIC published price less local basis

Soybeans 008100 1008 NIRR NA NA Bushels 75.0 MPCI Avg 

Yield $9.56 Local cash bid price – Lewiston Elevator, October Delivery

Oats 001600 0915 NIRR Certified 

Organic NA Bushels 120.0 MPCI Avg Yield $6.65 Market Contract – Lewiston Organic Coop

Bulls 082300 0823 Registered Black 

Angus

2-YearOld Head 10 NA $3,000.00 3 yr. producer historic average sales 

records 2019-2021.

Calves 080000 0800 Fall 

Calves

Steers/

Heifers NA Lb. 600

3-year Avg

Sale Weight

2019-2021

$1.35/lb. CME Cattle Futures Market Oct 

2018 Quote

Part 3: Combined Direct Marketing Commodity or Micro Farm Information

16. Name of Market: Insured’s Farmers Market

17. Years Produced 18. Total Planted Acres 19. Revenue 22. Remarks

2019 12.50 $7,890.01

2020 15.20 $10,540.01

2021 15.20 $9,983.01

20. Average 14.30 $9,471.03

21. Expected Value per Acre $662.31