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24-0076 WFRP – Pilot

Released – August 2023

DEPARTMENT OF AGRICULTURE

FEDERAL CROP INSURANCE CORPORATION

WHOLE-FARM REVENUE PROTECTION PILOT POLICY

Whole-Farm Revenue Protection (WFRP) pilot provides protection against loss of revenue that you 

expect to earn or will obtain from commodities you produce or purchase for resale during the insurance 

period. Whole-farm revenue consists of revenue from all insured commodities on the farm operation, 

including revenue from animals and animal products.

This insurance policy is reinsured by the Federal Crop Insurance Corporation (FCIC) under the provisions 

of the Federal Crop Insurance Act (7 U.S.C. 1501-1524) (Act). All provisions of the policy and rights and 

responsibilities of the parties are specifically subject to the Act. The provisions of the policy may not be 

waived or varied in any way by us, our insurance agent or any other contractor or employee of ours, or 

any employee of the United States Department of Agriculture (USDA). We will use the procedures, 

including but not limited to handbooks, manuals, memoranda, and bulletins, as issued by FCIC and 

published on the Risk Management Agency (RMA) website at www.rma.usda.gov or a successor website, 

in the administration of this policy, including the adjustment of any loss or claim submitted under this 

policy.

If we cannot pay your indemnity because we are insolvent or are otherwise unable to perform our duties 

under our reinsurance agreement with FCIC, your claim will be settled in accordance with the provisions 

of this policy, and FCIC will be responsible for any amounts owed. No state guarantee fund will be liable 

for your loss.

Throughout this policy, “you” and “your” refer to the insured shown on the application accepted by us, and 

“we,” “us,” and “our” refer to the insurance provider providing insurance. Unless the context indicates 

otherwise, use of the plural form of a word includes the singular and the singular form of the word 

includes the plural. Some of the provisions contained in this policy require information contained on farm 

tax form Schedule F for the Federal tax return (Form 1040) or other alternative farm tax forms. Specific 

line numbers from the Schedule F for the cash accounting method (2013 tax year version) are referenced 

in the policy. To the extent that the line numbers may change, the corresponding line number for the 

Schedule F for the policy year the policy is in effect will apply.

AGREEMENT TO INSURE: We agree that in return for the payment of the premium, and subject to all 

of the provisions of this policy, we will provide the insurance as stated in this policy. If there is a conflict 

between the (1) Act; (2) regulations published at 7 CFR, Chapter IV; (3) policy provisions; and (4) 

procedures issued by FCIC, the order of priority is (1) controlling (2), etc. If there is a conflict between 

the policy provisions, the order of priority is the (1) Special Provisions, (2) actuarial documents; and (3) 

these Basic Provisions, with (1) controlling (2), etc.
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TABLE OF CONTENTS

Your Insurance Contract ............................................................................................................................3

1. Definitions ........................................................................................................................................3

2. Application......................................................................................................................................10

3. Qualifying Person Criteria and Insurance Eligibility .......................................................................12

4. Life of Policy, Termination, and Cancellation.................................................................................14

5. Contract Changes ..........................................................................................................................18

6. Notices ...........................................................................................................................................18

7. Record Retention and Access to Insured Commodities and Records...........................................18

Your Coverage...........................................................................................................................................19

9. Coverage........................................................................................................................................19

10. Allowable Revenue ........................................................................................................................20

12. Your Approved Revenue................................................................................................................21

13. Share Insured.................................................................................................................................21

14. Administrative Fees, Subsidy, and Annual Premium.....................................................................21

15. Required Reports...........................................................................................................................23

16. Your Whole-Farm History Report and Whole Farm Historic Average Revenue............................25

17. Your Farm Operation Report .........................................................................................................28

18. Expected Value and Expected Yield..............................................................................................31

19. Your Commodity Count and Qualifying Revenue Threshold.........................................................34

Loss Determinations.................................................................................................................................35

21. Causes of Loss ..............................................................................................................................35

22. Your Duties in the Event of Damage or Loss.................................................................................36

23. Our Duties in the Event of Damage or Loss ..................................................................................37

24. Replant Payment............................................................................................................................38

25. Claim for Indemnity ........................................................................................................................38

Administrative Provisions........................................................................................................................41

28. Assignment of Indemnity................................................................................................................41

29. Transfer of Coverage and Right to Indemnity................................................................................41

30. Other Insurance and NAP..............................................................................................................41

31. Amounts Due Us ............................................................................................................................42

32. Commodities as Payment ..............................................................................................................43

33. Mediation, Arbitration, Appeal, Reconsideration, and Administrative and Judicial Review...........43

34. Interest Limitations.........................................................................................................................45

35. Descriptive Headings .....................................................................................................................45

36. Controlled Substances...................................................................................................................45

37. Applicability of State and Local Statutes........................................................................................45

38. Concealment, Misrepresentation or Fraud.....................................................................................45

39. Multiple Benefits.............................................................................................................................46

40. Death, Disappearance, Judicial Incompetence, and Dissolution...................................................46

41. Correction of Errors........................................................................................................................47

42. Voided Policies...............................................................................................................................48

Special Circumstances.............................................................................................................................48

44. Organic Commodities.....................................................................................................................48

45. Post-Production Operations and Added Value ..............................................................................49

46. Animals and Animal Products ........................................................................................................49

47. Nursery and Greenhouse Commodities.........................................................................................50

48. Marketing Contracts.......................................................................................................................51

49. Expanded Operations ....................................................................................................................51

50. Industrial Hemp..............................................................................................................................53

51. Direct Marketed Commodities........................................................................................................54
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Terms and Conditions

Your Insurance Contract

1. Definitions

Abandon - Failure to continue activities 

necessary to produce an amount of allowable 

revenue equal to or greater than the 

expected revenue of a commodity, 

performing activities so insignificant as to 

provide no benefit to a commodity, or failure 

to harvest or market a commodity in a timely 

manner.

Accrual accounting method - A system of 

record keeping in which revenue earned and 

expenses incurred for a specified time period 

are recorded regardless of whether the 

revenue was received or the expenses were 

paid during the specified time period.

Act - The Federal Crop Insurance Act (7 

U.S.C. 1501 et seq.).

Actuarial documents - The information for 

the policy year that is available for public 

inspection in your agent’s office and 

published on RMA’s website that includes 

available crop insurance policies, coverage 

levels, and information needed to determine 

amounts of insurance, premium rates, 

premium adjustment percentages, program 

dates, and other related information 

regarding the insurance coverage.

Additional coverage - A level of coverage 

greater than catastrophic risk protection.

Administrative fee - A fee in addition to your 

premium that you must pay for insurance for 

each policy year.

Agricultural experts - Persons who are 

employed by the Cooperative Extension 

System, the agricultural departments of 

universities, or other persons approved by 

FCIC, whose research or occupation is 

related to the specific commodity or practice 

for which such expertise is sought.

Allowable revenue - Farm revenue, 

specified by this policy and including 

applicable adjustments, from the production 

of commodities produced by your farm 

operation, purchased for resale, or 

purchased for further growth and 

development by your farm operation, that the 

IRS requires you to report on farm tax 

records.

Allowable Revenue Worksheet - A 

worksheet to be completed by you and 

accepted by us that adjusts your revenue by 

removing revenue that is not allowable under 

this policy.

Animals - Living organisms other than plants 

or fungi that are produced or raised in farm 

operations, including, but not limited to, 

cattle, horses, swine, sheep, goats, poultry, 

fish, bees, and fur bearing animals. For the 

purposes of this policy, animals must be 

propagated or reared in a controlled 

environment.

Animal products - Any commodity derived 

from a live animal, excluding commodities

that are also animals or parts of animals. 

Examples include: milk, eggs, honey, and 

wool but not live calves, processed broilers,

package bees, or mutton.

Application - The form required to be 

completed by you and accepted by us before 

insurance coverage will begin.

Approved revenue - The amount of 

allowable revenue that your farm operation is 

expected to earn or will obtain from the sale 

of commodities you produce, or purchase for 

resale, in the insurance period as approved 

by us.

Aquaculture commodity - Aquatic animals 

or plants grown in a controlled aquatic 

environment, including but not limited to fish, 

shellfish, and seaweeds.

Assignment of indemnity - A transfer of 

policy rights, where you assign your right to 

an indemnity payment, for the policy year 

only, to creditors or other persons to whom 

you have a financial debt or other monetary 

obligation.

Average allowable revenue - The average 

of the allowable revenue for your whole-farm 

history period after any applicable 

adjustments.

Beginning accounts receivable - Allowable 

revenue, supported by verifiable records, you 

earned prior to the insurance period, but that 

has not been received at the beginning of the 

insurance period. This amount includes the 

value of beginning inventory that is under a 

marketing contract with a buyer to be 

purchased at a specified price.

Beginning farmer or rancher - An individual 

who has not actively operated and managed 

a farm or ranch in any state, with an insurable 

interest in a crop or livestock as an owner-
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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 your 

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 - The commodities you 

produced or owned prior to the insurance 

period, but that have not been sold or 

otherwise disposed of at the beginning of the 

insurance period and supported by verifiable 

records. Any commodity that is under a 

marketing contract with a buyer to be 

purchased during the previous insurance 

period at a price that will not be determined 

until the current insurance period or 

subsequent years will be considered as 

beginning inventory.

Bypassed acreage - Land on which a 

commodity, grown under a processor 

contract, is ready for harvest but the buyer 

elects not to accept the commodity and it is 

not harvested.

Calendar year filer - An insured that files 

taxes based on the 12 consecutive months 

corresponding to January 1 through 

December 31.

Cancellation date - The date specified in the 

actuarial documents for your tax filer type on 

which your coverage will automatically renew 

unless canceled in writing by either you or us 

or terminated in accordance with the policy 

terms.

Carryover insured - An insured that was 

covered under WFRP in the policy year 

immediately prior to the current policy year 

without respect to insurance provider.

Cash accounting method - A system of 

record keeping where revenue and expenses 

are recorded during the time period they are 

actually received or paid.

Catastrophic Risk Protection (CAT) - The 

minimum level of coverage offered by FCIC.

Certified organic acreage - Acreage in the 

certified organic farm operation that has been 

certified by a certifying agent as conforming 

to organic standards in accordance with 7 

CFR part 205.

Certificate - With respect to organic crops, a 

written document that identifies the name of 

the person certified, effective date of 

certification, certificate number, types of 

products certified, and name and address of 

the certifying agency.

Certification - With respect to organic crops, 

a determination made by the certifying 

agency that the production or handling 

operation is in compliance with the certifying 

agency’s certification standards.

Certifying agent - A private or governmental 

entity accredited by the USDA Secretary of 

Agriculture for the purpose of certifying a 

production, processing, or handling operation 

as organic.

Claim for indemnity - A claim for a loss 

made on our form that contains the 

information necessary to pay the indemnity, 

as specified in this policy.

Combined direct marketing - Two or more 

commodities sold through direct marketing 

and reported as a single commodity code on 

your Farm Operation Reports.

Commodities purchased for resale - 

Commodities not produced by your farm 

operation that are purchased to be added to 

your farm operation and then subsequently 

sold. This does not include commodities 

purchased for further growth, development or 

maturity for later sale, or commodities 

purchased to replace production of your farm 

operation lost due to insurable causes.

Commodity - Any agricultural product 

established or produced on your farm 

operation, except timber, forest, and forest 

products, and animals for sport, show, or 

pets.

Commodity code - A code designating an 

agricultural product that qualifies as a 

commodity for the commodity count 

calculations. A commodity code may have 

more than one associated rate code.

Commodity count - The number of 

commodities on your farm operation, as 

determined in accordance with section 19(c). 

Consent - Approval in writing by us allowing 

you to take a specific action.

Contemporaneous records - Written 

records developed at the time the event 

occurred, recording information such as 

planting of a commodity, harvested 

production, sale of a commodity, daily 

receipts, etc.
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Contract change date - The date by which 

changes to the policy, if any, will be made 

available.

Contract grower - A person retained under 

contract to manage the growth of a 

commodity owned by another person.

Controlled atmosphere storage - An 

agricultural storage method in which the 

concentrations of oxygen, carbon dioxide,

and nitrogen, as well as the temperature and 

humidity of a storage room are regulated. 

Controlled substance - Any substance 

whose manufacture, distribution, or use is 

federally regulated under the Controlled 

Substances Act.

Cooperative Extension System - 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 - Any county, parish, political 

subdivision of a state, or other area specified 

in the actuarial documents. 

Damage - Injury, deterioration, or loss of 

production of an insured commodity due to 

insured or uninsured causes.

Days - Calendar days.

Deductible - The deductible is equal to your 

approved revenue minus your insured 

revenue. Your deductible represents the 

amount of your approved revenue that is not 

insured by this policy. 

Delinquent debt - Has the same meaning as 

the term defined in 7 CFR part 400, subpart 

U.

Direct marketing - Marketing commodities 

directly to consumers without the 

involvement of a third party (e.g., farmer’s 

markets, u-pick, roadside stands, internet 

sales, etc.).

Direct marketing sales records -

Contemporaneous records that document 

the sale of commodities through direct 

marketing. If you sell a commodity through 

direct marketing, you must provide the 

contemporaneous records used to determine 

allowable revenue on the Schedule F farm 

tax form.

Disinterested third party - A person that 

does not have any familial relationship 

(parents, brothers, sisters, children, spouse, 

grandchildren, aunts, uncles, nieces, 

nephews, first cousins, or grandparents, 

related by blood, adoption, or marriage, are 

considered to have a familial relationship) 

with you and who will not benefit financially 

from the sale of the insured commodity. 

Disregarded entity - A single-member tax 

entity that does not elect to be treated as a 

corporation for income tax purposes and files 

taxes under another entity name.

Diversification discount - The discount to 

your farm premium rate that your farm 

operation qualifies for based on your

commodity count, as determined in 

accordance with section 19(c).

Early fiscal year filer - An insured, other 

than a calendar year filer, that files taxes with 

a fiscal year that begins prior to September 1.

End of insurance period, date of - The date 

upon which your insurance coverage ceases 

for the policy year.

Ending accounts receivable - Allowable 

revenue, supported by verifiable records, you 

earned during the insurance period, but that 

has not been received at the end of the 

insurance period. This amount includes the 

value of ending inventory that is under a 

marketing contract with a buyer to be 

purchased at a specified price.

Ending inventory - The commodities you 

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 

subsequent policy years will be considered 

as ending inventory.

Expanded operation adjusted revenue -

The average allowable revenue adjusted to 

reflect physical expansion of the farm 

operation.

Expanding operation factor - A factor that 

is used to calculate the expanded operation 

adjusted revenue for farm operations that are 

physically expanding.

Expected revenue - The amount of revenue 

you expect to receive from a commodity, as 

stated on your Farm Operation Report. 

Expected value - The price that you expect 

to receive for a commodity, determined in 

accordance with the expected value 

guidelines in section 18, less the cost of all 

post-production expenses.
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Expected Yield - The yield that you 

reasonably expect your insured commodity to 

produce under normal growing conditions in 

the insurance period, determined in 

accordance with the expected yield 

guidelines in section 18.

Familial relationship - Your parents, 

brothers, sisters, children, spouse, 

grandchildren, aunts, uncles, nieces, 

nephews, first cousins, or grandparents, 

related by blood, adoption, or marriage.

Farm premium rate - The premium rate for 

coverage under this policy calculated based 

on the commodities on your farm operation.

Farm operation - All farming activities for 

which revenue and expenses are reported to 

the IRS under a single taxpayer identification 

number will be considered a single farm 

operation for WFRP purposes (e.g., a 

partnership filing a U.S. tax return for 

partnership income that includes revenue 

and expenses from separate row crop, 

perennial crop and livestock farms is a single 

farm operation because it files one tax 

return).

Farm Operation Report - The form on which 

you provide all required information regarding 

the commodities you expect to earn revenue 

from during the insurance period. The Farm 

Operation Report consists of three parts, the 

Intended Farm Operation Report, Revised 

Farm Operation Report, and Final Farm 

Operation Report, with each part due at the 

time specified in these provisions.

Farm tax forms - IRS income tax forms

(such as Form 1040, Form 1120, Form 1041, 

Form 1065, Form 1102S, and Form 4835)

used to report farm revenue and expenses 

for a signed and filed Federal tax return, 

specifically including Schedule F (Form 

1040) but also other forms used to report 

farm revenue and used under this policy to 

develop a Substitute Schedule F, if needed.

Farming activity - The cultivation or use of 

land for growing or raising commodities

(including animals, animal products, 

aquaculture, and nursery and greenhouse

commodities), or the on-site storage, 

preparation, and sale of commodities 

produced on the farm operation.

Fiscal year - A period of 12 consecutive 

months used for accounting and tax 

purposes and ending on the last day of the 

twelfth month provided the twelfth month is 

not December (a twelve-month period ending 

the last day of December is a calendar year).

Farm Service Agency (FSA) - An agency of 

the USDA, or a successor agency.

FCIC reinsured policy - An insurance policy 

offered under the authority of the Act and 

reinsured by the FCIC. 

Generally recognized - When agricultural 

experts or organic agricultural experts, as 

applicable, are aware of the production 

method or practice and there is no genuine 

dispute regarding whether the production 

method or practice allows the commodity to 

make normal progress toward maturity.

Good farming practices - The production 

methods utilized to produce the insured 

commodities and allow them to make normal 

progress toward maturity resulting in at least 

the approved revenue, which are: (1) For 

conventional or sustainable farming 

practices, those generally recognized by 

agricultural experts for the area; or (2) for 

organic farming practices, those generally 

recognized by organic agricultural experts for 

the area or contained in the organic plan. We 

may, or you may request us to, contact FCIC 

to determine whether or not production 

methods will be considered “good farming 

practices.”

Industrial Hemp - The plant Cannabis sativa 

L. and any part of that plant, including the 

seeds thereof and all derivatives, extracts, 

cannabinoids, isomers, acids, salts, and salts 

of isomers, whether growing or not, with a 

delta-9 tetrahydrocannabinol (THC) 

concentration of not more than 0.3 percent on 

a dry weight basis.

Household - A domestic establishment 

including individuals with a familial 

relationship and others who live on the same 

property.

Indexed average revenue - The average 

revenue for all years in your whole farm 

history-period after any adjustment to reflect 

revenue growth during the whole-farm history 

period.

Indexed revenue - The allowable revenue of 

a tax year adjusted to reflect revenue growth 

during the whole-farm history period.

Insurable interest - Your percentage of a 

commodity that is at financial risk of loss.

Insurance period - The 12-month period 

corresponding to your tax year beginning in 

the calendar year in which the sales closing 

date occurs. 

Insured - The named person as shown on 

the application accepted by us. This term 

does not extend to any other person having a 
Page 7 of 55

share or interest in the crop such as, a 

partnership, landlord, or any other person, 

unless specifically indicated on the 

application accepted by us.

Insured commodity - A commodity you will 

produce or purchase for resale during the 

insurance period.

Insured revenue - The total amount of 

insurance provided to you by this policy.

Intended commodity - A commodity you

reported on your Intended Farm Operation 

Report. 

Internal Revenue Service (IRS) - A bureau 

of the United States Department of the 

Treasury.

Inventory Report - The form on which you 

provide all required information regarding the 

beginning inventory and ending inventory of 

your farm operation.

Lag year - The tax year immediately 

preceding the insurance period. 

Late fiscal year filer - An insured that files 

taxes with a fiscal year that begins 

September 1 or later.

Limited resource farmer - Has the same 

meaning as the term defined by USDA at 

http://lrftool.sc.egov.usda.gov or a successor 

website.

Local market price - The average price 

offered by buyers of the commodity in the 

area where you normally sell that commodity.

Market readiness operations - The on-farm 

activities that are the minimum required to 

remove the commodity from the field and 

make the commodity market ready, such as 

washing, packing, etc. 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 that increase the 

value of the crop, such as canning, freezing, 

and processing activities that alter the 

physical nature of insurable commodities 

including, but not limited to, slicing apples, 

putting commodities into gift baskets, jams, 

jellies, wine, or cider, etc.

Marketing contract - A written agreement 

between you and a buyer for the purchase of 

a commodity you will produce on your farm 

operation at a specified price.

National Organic Program (NOP) - A 

regulatory program housed within the USDA 

Agricultural Marketing Service, responsible 

for developing national standards for 

organically-produced agricultural products.

Native sod - Acreage that has no record of 

being tilled (determined in accordance with 

information collected and maintained by an 

agency of the USDA or other verifiable 

records that you provide and are acceptable 

to us) for the production of an annual crop on 

or before February 7, 2014, and on which the 

plant cover is composed principally of native 

grasses, grass-like plants, forbs, or shrubs 

suitable for grazing and browsing.

Negligence - The failure to use such care as 

a reasonably prudent and careful person 

experienced in the production of commodities 

would use under similar circumstances.

Net value - Value of a commodity at the 

beginning of the insurance period minus the 

cost of the commodity.

Noninsured Crop Disaster Assistance 

Program (NAP) - A program administered by 

FSA which provides financial assistance to 

producers of crops that do not have a 

permanent crop insurance program available

or, is such coverage is available, it is only 

available under a policy that provides 

coverage for specific intervals based on 

weather indexes or this policy. 

Notice of loss - A written notice you are 

required to file in your agent’s office 

whenever you initially discover that any 

commodity insured under this policy has 

been damaged by a cause of loss that could 

result in a loss of production or reduction in 

value or that your allowable revenue for the 

policy year may be less than your insured 

revenue.

Nursery and greenhouse commodities - 

Plants which are propagated or grown to be 

sold as plants, not including commodities 

produced by plants (e.g., tomato plants, but 

not tomatoes). For the purposes of this 

policy, plants for nursery and greenhouse 

commodities must be propagated or grown in 

a controlled environment.

Offset - The act of deducting one amount 

from another amount.

Organic agricultural experts - Persons who 

are employed by the following organizations: 

Appropriate Technology Transfer for Rural 

Areas, Sustainable Agriculture Research and 

Education or the Cooperative Extension 

System, the agricultural departments of 

universities, or other persons approved by 

FCIC whose research or occupation is 
Page 8 of 55

related to the specific organic crop or practice 

for which such expertise is sought.

Organic farming operation - An operation 

that uses organic farming practices to 

produce organic commodities.

Organic farming practice - A system of 

plant or animal production practices used to 

produce the commodity that is reviewed by a 

certifying agent in accordance with 7 CFR 

part 205.

Organic system plan - A written plan, in 

accordance with the National Organic 

Program published in 7 CFR part 205, which 

describes the organic farming practices and 

is reviewed annually, or at other times 

specified on the certificate, by a certifying 

agent.

Organic standards - Standards in 

accordance with the Organic Foods 

Production Act of 1990 (7 U.S.C. 6501 et 

seq.) and 7 CFR part 205.

Originating entity - An entity that actually 

physically produces the commodity.

Pass-through entity - An entity that reports 

to the IRS but does not pay taxes on portions 

of the revenue, instead passing it to each 

individual owner who then pays income tax 

on their portion of the revenue from the 

business.

Perennial commodity - A commodity 

produced on a plant, bush, tree, or vine that 

has a lifespan of more than one year, as 

identified in the actuarial documents.

Person - An individual, partnership, 

association, corporation, estate, trust, or 

other legal entity, and wherever applicable, a 

State or a political subdivision or agency of a 

State. “Person” does not include the United 

States Government or any agency thereof.

Policy - The agreement between you and us 

to insure all insurable revenue on the farm 

operation, and consisting of the application 

accepted by us, these Basic Provisions, the 

Special Provisions, any other applicable 

endorsements or options, the actuarial 

documents and the applicable regulations 

published in 7 CFR chapter IV. All farm 

revenue will be insured under one policy.

Policy year - The policy year is the calendar 

year that begins after the contract change 

date (for late fiscal year filers the policy year 

will differ from the tax year insured under this 

policy).

Post-production operations - Any 

operations not included in the definition of 

market readiness operations, performed after 

producing and harvesting an insured 

commodity to prepare it for sale. These 

include, but are not limited to, any activity 

occurring on-farm or off-farm to prepare the 

commodity for sale or any activity that 

increases the value of the crop, such as 

canning, freezing, and processing activities 

that alter the physical nature of insurable 

commodities such as slicing apples, putting 

commodities into gift baskets, making jams, 

jellies, wine, or cider, or costs for cold and 

controlled atmosphere storage.

Premium billing date - The earliest date 

upon which you will be billed for insurance. 

The premium billing date is contained in the 

actuarial documents.

Primary insurance - A policy that pays an 

indemnity for a covered cause of loss first, 

even when the policyholder has other policies 

that cover the same cause of loss.

Produced - An insured commodity will be 

considered produced when it has matured to 

the extent that it is generally saleable at 

established markets, regardless of whether 

or not it is actually harvested by the end of 

the insurance period.

Production capacity - Physical land or 

structures used for the production of 

commodities on your farm operation.

Prohibited substance - Any biological, 

chemical, or other agent that is prohibited 

from use by Federal statute or is not included 

in the organic standards for use on any 

certified organic, transitional, or buffer zone 

acreage. Lists of such substances are 

contained at 7 CFR part 205.

Qualifying revenue threshold - The 

minimum amount of revenue a commodity 

must be expected to generate to qualify as a 

commodity for the purpose of your 

commodity count, as determined in 

accordance with section 19(b).

Rate code - A code designating a specific

commodity, type, and practice for premium 

rate calculations. Each rate code has an 

associated premium rate specified in the 

actuarial documents.

Replanted commodity - The same annual 

commodity replanted on the same acreage 

as the first insured commodity for harvest in 

the same insurance period.

Replanting - Performing the cultural 

practices necessary to prepare the land and 

then replacing the seed or plants of the 

damaged or destroyed commodity on the 

same acreage. 
Page 9 of 55

Revenue trend factor - A factor that is used 

to measure the year-to-year growth in 

revenue of your farm operation.

RMA’s website - A website hosted by RMA 

and located at https://www.rma.usda.gov/ or 

a successor website.

Sales closing date - The date contained in 

the actuarial documents for your tax filer type 

by which an application must be filed and the 

last date by which you may change your 

coverage for a policy year. 

Schedule F - A tax form commonly used to 

file Federal taxes for a farm.

Short tax year - A period of less than twelve 

consecutive months for which a tax entity 

may be required to file a tax return due to 

changing from a calendar year to fiscal year 

or vice versa or from changing the dates of a 

fiscal year.

Simple average allowable revenue - The 

simple average of the allowable revenue for 

all years in your whole-farm history period.

Simple average indexed revenue - The 

simple average of the indexed revenue for all 

years in your whole-farm history period.

Special Provisions - The part of the policy 

that contains specific provisions of insurance 

that may vary by geographic area or as 

specified in the policy.

Substantial beneficial interest - An interest 

held by any person of at least 10 percent in 

you (e.g., there are two partnerships that 

each have a 50 percent interest in you and 

each partnership is made up of two 

individuals, each with a 50 percent share in 

the partnership. In this case, each individual 

would be considered to have a 25 percent 

interest in you, and both the partnerships and 

the individuals would have a substantial 

beneficial interest in you. The spouses of the 

individuals would not be considered to have 

a substantial beneficial interest unless the 

spouse was one of the individuals that made 

up the partnership. However, if each 

partnership is made up of six individuals with 

equal interests, then each would only have 

an 8.33 percent interest in you and although 

the partnership would still have a substantial 

beneficial interest in you, the individuals 

would not). The spouse of any individual 

applicant or individual insured will be 

presumed to have a substantial beneficial 

interest in the applicant or insured unless the 

spouses can prove they are legally separated 

or otherwise legally separate under the 

applicable state dissolution of marriage laws. 

Any child of an individual applicant or 

individual insured will not be considered to 

have a substantial beneficial interest in the 

applicant or insured unless the child has a 

separate legal interest in such person.

Substitute Schedule F - A form used in 

place of a Schedule F form if you file farm tax 

forms for your farm operation that do not 

include a Federal Schedule F tax form.

Summary of coverage - Our statement to 

you, based upon your Farm Operation Report 

that provides specific information about your 

policy including the amount of insurance 

coverage.

Tax entity - Any person that has a tax 

reporting requirement.

Tax filer type - The type of tax filer you are 

for purposes of this policy, determined 

according to your tax year. The tax filer types 

are calendar year filer, early fiscal year filer, 

and late fiscal year filer.

Tax year - The annual accounting period for 

the farm operation defined by the 12-month

period used for tax purposes. The tax years 

are: (1) a calendar year; or (2) a fiscal year. 

For the purposes of this policy, tax years are 

designated by the calendar year in which the 

12-month period begins (for example, if you 

are a fiscal year filer with a 12-month

accounting period beginning November 1, 

your 2017 tax year is the 12-month period 

beginning November 1, 2017.

Termination date - The date contained in the 

actuarial documents upon which your 

insurance ceases to be in effect because of 

nonpayment of any amount due us under the 

policy, including premium.

Total expected revenue - The total amount 

of expected revenue you expect to receive 

from all commodities on your farm operation 

during the insurance period, as stated on 

your Farm Operation Report, including 

expected revenue from commodities lost due 

to a covered cause of loss.

Transitional acreage - Acreage on which 

organic farming practices are being followed 

but the acreage does not yet qualify to be 

designated as certified organic acreage.

Verifiable records - Contemporaneous 

records provided from a disinterested third 

party, such as records from a warehouse, 

elevator, processor, packer, broker, input 

vendor, etc., or by measurement of farmstored commodities. Except for commodities 

sold through direct marketing, if you process 

or pack your insured commodities, you must 
Page 10 of 55

provide final settlement sheets showing 

disposition of the insured commodities and 

marketing records reconcilable with revenue 

reported for tax purposes for your farm 

operation.

Vertically integrated operation - A person 

that has a substantial beneficial interest in 

multiple entities that may buy and sell 

commodities from each other or move 

commodities from one entity to the other to 

conduct post-production operations on the 

commodities.

Veteran farmer or rancher - An individual 

who has served active duty in the United 

States Armed Forces, including the Army, 

Navy, Marine Corps, Air Force, Space Force, 

or Coast Guard, and their 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 in 

cases in which there is only a married 

couple, then a veteran and non-veteran 

spouse are considered a veteran farmer 

or rancher. 

Void - When the policy is considered not to 

have existed for a policy year.

Whole-farm historic average revenue -

The historic, average allowable revenue 

generated from the farm operation, adjusted 

according to this policy, and stated on the 

Whole-Farm History Report.

Whole-farm history period - The five 

consecutive tax years prior to the lag year.

Whole-Farm History Report - The report 

that documents your farm operation’s 

allowable revenue for each tax year used to 

determine your whole-farm historic average 

revenue and other information necessary to 

determine your whole-farm historic average 

revenue.

2. Application

(a) For your initial year of insurance, you 

must provide the completed, signed,

application to your agent not later than 

the sales closing date for your tax filer 

type.

(b) If voidance, cancellation or termination of 

insurance coverage occurs for any 

reason, including but not limited to 

indebtedness, suspension, debarment, 

disqualification, or cancellation by you or 

us or your policy is voided due to a 

conviction of the controlled substance 

provisions of the Food Security Act of 

1985 or Title 21, a new application must 

be filed for the crop.

(1) Insurance coverage will not be 

provided if you are ineligible under 

the contract or under any Federal 

statute or regulation.

(2) Since applications for crop insurance 

cannot be accepted after the sales 

closing date, if you make any 

premium payment, or you otherwise 

become eligible, after the sales 

closing date, you cannot apply for 

insurance until the next policy year. 

For example, for the 2012 policy

year, if crop A, with a termination 

date of October 31, 2012, and crop 

B, with a termination date of March 

15, 2013, are insured and you do not 

pay the premium for crop A by the 

termination date, you are ineligible 

for crop insurance as of October 31, 

2012, and crop A’s policy is 

terminated as of that date. Crop B’s 

policy does not terminate until March 

15, 2013, and an indemnity for the 

2012 policy year may still be owed. 

You will not be eligible to apply for 

crop insurance for any crop until after 

the amounts owed are paid in full or 

you file a petition to discharge the 

debt in bankruptcy.

(c) To change your coverage in a 

subsequent policy year, you must 

provide a policy change form reflecting 

the changes by the sales closing date or 

the policy terms from the previous policy

year will remain in effect.

(d) You must include the following 

information on your application for 

insurance or your application will not be 

accepted and no coverage will be 

provided:

(1) The coverage level;

(2) Your social security number (SSN) if 

you are an individual. If you are an 

individual applicant operating as a 

business, you must provide an 
Page 11 of 55

employer identification number (EIN) 

and you must also provide your SSN;

(3) Your EIN if you are a person other 

than an individual; and

(4) The following for all persons who 

have a substantial beneficial interest 

in you:

(i) The SSN for individuals; or

(ii) The EIN for persons other than 

individuals and the SSNs for all 

individuals that comprise the 

person with the EIN if such 

individuals also have a 

substantial beneficial interest in 

you;

(iii) Any child of yours will not be 

considered to have an interest in 

you unless the child has a 

separate legal interest in you.

(5) Whether your farm taxes, in 

accordance with this policy, are filed 

as a:

(i) Calendar year filer;

(ii) Early fiscal year filer; or

(iii) Late fiscal year filer.

(6) Any other material information 

required on the application for this 

policy.

(7) The county listed on the application 

should be the county where the 

majority of the total expected 

revenue is expected to be earned:

(i) If no county is expected to 

provide the majority of the total 

expected revenue, the county 

listed on the application should 

be the county with the highest 

amount of expected revenue; 

and

(ii) Regardless of the county listed 

on the application, the county 

with the highest expected

revenue at the time the Revised 

Farm Operation Report is 

submitted will be used for rating 

purposes.

(e) With respect to SSNs or EINs required on 

your application:

(1) Your application will not be accepted 

and no insurance will be provided for 

the year of application if the 

application does not contain your 

SSN or EIN. If your application 

contains an incorrect SSN or EIN for 

you, your application will be 

considered not to have been 

accepted, no insurance will be 

provided for the year of application 

and for any subsequent policy years, 

as applicable, and such policies will 

be void if:

(i) You do not correct the number; 

or

(ii) You correct the SSN or EIN but:

(A) You cannot prove that any 

error was inadvertent 

(Simply stating the error was 

inadvertent is not sufficient 

to prove the error was 

inadvertent); or

(B) It is determined that the 

incorrect number would 

have allowed you to obtain 

disproportionate benefits 

under the crop insurance 

program, you are 

determined to be ineligible 

for insurance or you could 

avoid an obligation or 

requirement under any State 

or Federal law; and

(2) With respect to persons with a 

substantial beneficial interest in you:

(i) If the SSNs or EINs of such 

persons are included on your 

application and the SSNs or 

EINs are correct, but the persons 

with a substantial beneficial 

interest in you are ineligible for 

insurance, the insurance 

coverage for all revenue 

included on your application will 

be reduced proportionately by 

the percentage interest in you of 

persons with a substantial 

beneficial interest in you 

(presumed to be 50 percent for 

spouses of individuals);

(ii) Your policy will be void if the 

SSN or EIN of any person with a 

substantial beneficial interest in 

you is incorrect or is not included 

on your application and:

(A) The number is not corrected 

or provided by you, as 

applicable;

(B) You cannot prove that any 

error or omission was 

inadvertent (Simply stating 

the error or omission was 

inadvertent is not sufficient 
Page 12 of 55

to prove the error or 

omission was inadvertent);

(C) Even after the correct SSN 

or EIN is provided by you, it 

is determined that the 

incorrect or omitted SSN or 

EIN would have allowed you 

to obtain disproportionate 

benefits under the crop 

insurance program, the 

person with a substantial 

beneficial interest in you is 

determined to be ineligible 

for insurance, or you or the 

person with a substantial 

beneficial interest in you 

could avoid an obligation or 

requirement under any State 

or Federal law; or

(D) Except as provided in 

sections 2(e)(2)(ii)(B) and 

(C), your policies will not be 

voided if you subsequently 

provide the correct SSN or 

EIN for persons with a 

substantial beneficial 

interest in you and the 

persons are eligible for 

insurance;

(f) Your approved revenue will be reduced 

proportionately by the percentage 

interest in you of persons with a 

substantial beneficial interest in you if

such persons are ineligible for insurance 

as long as:

(1) The SSN’s or EIN’s of such persons 

are included on your application; and

(2) The SSN’s or EIN’s are correct.

(g) Notwithstanding any of the provisions in 

this section, you may be subject to civil, 

criminal, or administrative sanctions if 

you certify to an incorrect SSN or EIN or 

any other information under this policy.

(h) If any of the information regarding 

persons with a substantial beneficial 

interest in you, changes:

(1) After the sales closing date from the 

previous policy year, you must revise 

your application by the sales closing 

date for the current policy year to 

reflect the correct information; or

(2) Less than 30 days before the sales 

closing date for the current policy

year, you must revise your 

application by the sales closing date 

for the next policy year; and

(3) You fail to provide the required 

revisions, the provisions in section 

2(f) will apply;

(i) If you are, or a person with a substantial 

beneficial interest in you is, not eligible to 

obtain an SSN or EIN, whichever is 

required, you must request an assigned 

number for the purposes of this policy 

from us:

(1) A number will be provided only if you 

can demonstrate you are, or a 

person with a substantial beneficial 

interest in you is, eligible to receive 

Federal benefits;

(2) If a number cannot be provided for 

you in accordance with (1) your 

application will not be accepted; or

(3) If a number cannot be provided for 

any person with a substantial 

beneficial interest in you in 

accordance with (1), the amount of 

insurance for all commodities on the 

application will be reduced 

proportionately by the percentage 

interest of such person in you.

(j) You must provide information to us 

regarding insurance you obtained from 

any other insurance provider or from any 

FSA office on commodities insured by 

this policy. The information provided 

must include the date such insurance 

was obtained.

(k) If your farm operation is vertically 

integrated, or you own or have interest in 

related tax entities, you must clearly 

identify and explain the relationship 

between such entities at the time you file 

your application.

(l) Your application will not be accepted, 

and no coverage will be provided, if you 

are ineligible under the contract or under 

any Federal statute or regulation.

3. Qualifying Person Criteria and Insurance 

Eligibility

(a) To be considered a qualifying person, 

you must:

(1) Be eligible to receive federal 

benefits;

(2) Be a U.S. citizen or resident;

(3) File either a Schedule F tax form or 

other farm tax forms that can be 

converted to a Substitute Schedule 

F;

(4) The Schedule F, or Substitute

Schedule F, must cover 100 percent 

of your farm operation. (A tax entity 
Page 13 of 55

which reports a fractional share of 

farming activity conducted by a 

partnership, corporation or any other 

“joint venture” does not qualify for 

WFRP coverage);

(5) Be engaged in the business of 

farming and derive revenue from the 

production of commodities; and

(6) Derive not more than 50 percent of

expected revenue from commodities 

purchased for resale.

(b) To be eligible for insurance under this 

policy you must be a qualifying person 

that has filed a United States Federal 

income tax return, including farm tax 

forms, for each of the five years of your 

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:

(1) Your tax entity (taxpayer 

identification number) changed (e.g., 

you and your spouse form a 

partnership and file a U.S. 

Partnership Return of Income and 

you previously filed a U.S. Individual 

Income Tax Return that included 

your spouse’s interest in the farm 

operation);

(2) You stop farming as an individual 

and farm as a tax entity other than an 

individual;

(3) You form a successor farming 

operation that is a different tax entity 

but is basically the same operation;

(4) You purchase, inherit, or lease 

another person’s farm operation and 

your use of their records is approved 

in accordance with section 16(g);

(5) You are a qualifying person that is 

not required to file a United States 

Federal income tax return because 

you are not subject to income tax

(e.g., a tribal entity) and:

(i) You must have filed reports with 

a disinterested third-party entity 

supported by verifiable records 

that we agree are sufficient to 

develop a Substitute Schedule F 

for each year in your whole-farm 

history period; and

(ii) The reports used to develop your 

Substitute Schedule F will be 

considered your farm tax forms

under this policy;

(6) You did not file farm tax forms or 

report farm revenue for a tax year 

due to circumstances beyond your 

control (e.g., illness that prevented 

you from farming for the year)

provided:

(i) You only have one year in your 

whole-farm history period in 

which you did not file farm tax 

forms; and

(ii) You have filed farm tax forms in 

the first year of your whole-farm 

history period, unless you are a 

carryover insured; and

(iii) You must have earned farm 

revenue during your lag year; or

(7) You qualify as a beginning farmer or 

rancher or veteran farmer or rancher, 

or you qualified as a beginning 

farmer or rancher or veteran farmer 

or rancher in the previous policy 

year, and you have fewer than five 

years of farm tax forms in your whole 

farm history period provided:

(i) You provide your farm tax forms 

for each year in your whole-farm 

history period in which you 

reported farm revenue; and

(ii) You have at least three years of 

farm tax forms in your wholefarm history period and must 

have earned farm revenue 

during your lag year.

(c) Your farm operation will be ineligible for 

insurance under this policy and no 

coverage will be provided if:

(1) Your insured revenue will be greater 

than $17 million on the sales closing 

date, based on your Intended Farm 

Operation Report;

(2) Your commodity count, as 

determined using your Intended 

Farm Operation Report, equals one 

and;

(i) Potatoes are the only commodity 

with expected revenue that 

equals or exceeds your 

qualifying revenue threshold. 

(This limitation is a legislated 

requirement under section 

508(a)(3)(C) of the Act);

(ii) Revenue protection is available 

under another FCIC reinsured

policy for the commodity with 

expected revenue that equals or 
Page 14 of 55

exceeds your qualifying revenue 

threshold; or

(3) Your farm operation includes any 

revenue from controlled substances

(the plant Cannabis sativa L. is not a 

controlled substance when it 

qualifies as industrial hemp. See 

section 50 for rules specific to 

industrial hemp).

(d) You will not be considered a qualifying 

person for this policy year if the tax year 

corresponding to the insurance period 

will be a short tax year. If you have any

short tax years in your history or the lag 

year is a short tax year:

(1) You must resubmit your whole-farm 

history based on the calendar or 

fiscal year used for the policy year; 

(2) The whole-farm history must 

accurately reflect the income from 

the calendar or fiscal year; and

(3) We may, at our discretion and based 

on your resubmitted records, allow 

you to obtain insurance.

(e) Originating pass-through entities may 

insure the allowable revenue from 

commodities produced by the farm 

operation under WFRP. Owners of a 

pass-through entity that are not the 

originating entity may not insure passthrough revenue or loss under WFRP.

(f) Disregarded entities are not considered 

qualifying persons. Allowable revenue 

from disregarded entities may be insured 

by an entity that files farm tax forms that 

includes such revenue.

4. Life of Policy, Termination, and

Cancellation

(a) After we have accepted your application, 

you may not cancel this policy for the 

initial policy year.

(b) This is a continuous policy and will 

remain in effect for each succeeding 

policy year following the acceptance of 

the original application until canceled by 

you or us in accordance with the terms of 

the policy. In accordance with section 5, 

FCIC may change the coverage provided 

from year to year.

(c) Either you or we may cancel this policy 

after the initial policy year by providing 

written notice to the other on or before 

the cancellation date.

(d) We may cancel your policy if no premium 

is earned for 3 or more consecutive 

policy years.

(e) If any amount due, including premium or

administrative fees, or overpaid 

indemnities, is not paid or an acceptable 

arrangement for payment is not made on 

or before the termination date for the 

policy year on which an amount is due, 

you will be determined to be ineligible to 

participate in FCIC reinsured policy in 

accordance with 7 CFR part 400, subpart 

U.

(1) For a policy with unpaid 

administrative fees or premium, the 

policy will terminate effective on the 

first day of the policy year 

immediately subsequent to the policy

year for which such amount was due 

(insurance will be considered not to 

have attached in the subsequent 

year and no premium will be owed or 

indemnity paid);

(2) For a policy with other amounts due, 

the policy will terminate effective on 

the termination date immediately 

after the account becomes 

delinquent;

(3) Ineligibility will be effective as of the 

date that this policy was terminated 

and for all other insurance policies 

with coincidental termination dates;

(4) All other FCIC reinsured policies will 

also terminate as of the next 

termination date contained in the 

policy;

(5) If you are ineligible, you may not 

obtain any insurance under the Act 

until payment is made in full, you 

execute an agreement to repay the 

debt or you have your debts 

discharged in bankruptcy;

(6) If you execute an agreement to pay 

the debt and fail to make any 

scheduled payment, all policies will 

be terminated effective on the

termination date for the policy year in 

which you failed to make the 

scheduled payment and no 

indemnity payment or replant 

payment, if applicable, will be due for 

that crop or policy year. You will no 

longer be eligible to obtain crop 

insurance by execution of an 

agreement to pay the debt. You will 

be ineligible for crop insurance until

the debt is paid in full or you have 

your debts discharged in bankruptcy;
Page 15 of 55

(7) Once the policy is terminated, the 

policy cannot be reinstated for the 

current policy year unless the 

termination was in error;

(8) After you again become eligible for 

insurance, if you want to obtain 

insurance coverage, you must 

reapply on or before the applicable 

sales closing date (Since 

applications for insurance cannot be 

accepted after the sales closing date, 

if you become eligible after the sales 

closing date, you cannot apply for 

insurance until the next policy year); 

and

(9) If we deduct the amount due us from 

an indemnity, the date of payment for 

the purpose of this section will be the 

date you sign the properly executed 

claim for indemnity.

For example, if policy A, with a 

termination date of January 31, 

2015, and policy B, with a 

termination date of March 15, 2015, 

are issued and you do not pay the 

premium for policy A by the 

termination date, you are ineligible 

for insurance as of January 31, 

2015, and policy A is terminated on 

that date. Policy B is terminated as 

of March 15, 2015. If you enter an 

agreement to repay the debt on 

December 31, 2015, you can apply 

for insurance for policy A by the 

January 31, 2016, sales closing 

date and policy B by the March 15, 

2016, sales closing date. If you fail 

to make a scheduled payment on 

April 1, 2016, your policy will 

terminate as of January 31, 2016, 

for crop A, and March 15, 2016, for 

crop B, and no indemnity payment 

will be due for that policy year for 

either crop. You will not be eligible 

to apply for crop insurance for any 

crop until after the debt is paid in full 

or you have your debts discharged 

in bankruptcy and you make 

application in accordance with 

section 4(e).

(f) Any amount due to us for any FCIC 

reinsured policy will be offset from any 

indemnity due you for this or any policy 

insured with us under the authority of the 

Act.

(1) Even if your claim has not yet been 

paid, you must still pay the premium 

and administrative fee on or before 

the termination date for you to 

remain eligible for insurance.

(2) If we offset any amount due us from 

an indemnity payment owed to you, 

the date of payment for the purpose 

of determining whether you have a 

delinquent debt will be the date that 

you submit the claim for indemnity in 

accordance with section 25.

(g) A delinquent debt for any policy will make 

you ineligible to obtain crop insurance 

authorized under the Act for any 

subsequent policy year and result in 

termination of all policies in accordance 

with section 4(g)(2).

(1) With respect to ineligibility:

(i) Ineligibility for crop insurance will 

be effective on:

(A) The date that a policy was 

terminated in accordance 

with section 4(g)(2) for the 

policy year for which you 

failed to pay premium, an 

administrative fee, or any 

related interest owed, as 

applicable;

(B) The payment due date 

contained in any notification 

of indebtedness for overpaid 

indemnity, or replanting 

payment, if you fail to pay the 

amount owed, including any 

related interest owed, as 

applicable, by such due 

date;

(C) The termination date for the 

policy year prior to the policy

year in which a scheduled 

payment is due under a 

written payment agreement 

if you fail to pay the amount 

owed by any payment date 

in any agreement to pay the 

debt; or

(D) The termination date the 

policy was or would have 

been terminated under 

sections 4(g)(2)(i)(A), (B) or 

(C) if your bankruptcy 

petition is dismissed before 

discharge.

(ii) If you are ineligible and a policy 

has been terminated in 
Page 16 of 55

accordance with section 4(g)(2), 

you will not receive any 

indemnity, or replanting 

payment, if applicable, and such 

ineligibility and termination of the 

policy may affect your eligibility 

for benefits under other USDA 

programs. Any indemnity, or 

replanting payment that may be 

owed for the policy before it has 

been terminated will remain 

owed to you but may be offset in 

accordance with section 14(j)

unless your policy was 

terminated in accordance with 

sections 4(g)(2)(i)(A), (B), (D) or 

(E).

(2) With respect to termination:

(i) Termination will be effective on:

(A) For a policy with unpaid 

administrative fees or 

premiums, the termination 

date immediately 

subsequent to the premium 

billing date for the policy

year (For policies for which 

the sales closing date is prior 

to the termination date, such 

policies will terminate for the 

current policy year even if 

insurance attached prior to 

the termination date. Such 

termination will be 

considered effective as of 

the sales closing date and 

no insurance will be 

considered to have attached 

for the policy year and no 

indemnity, or replant 

payment will be owed);

(B) For a policy with other 

amounts due, the 

termination date 

immediately following the 

date you have a delinquent 

debt (For policies for which 

the sales closing date is prior 

to the termination date, such 

policies will terminate for the 

current policy year even if 

insurance attached prior to 

the termination date. Such 

termination will be 

considered effective as of 

the sales closing date and 

no insurance will be 

considered to have attached 

for the policy year and no 

indemnity, or replant 

payment will be owed);

(C) For all other FCIC reinsured

policies, the termination date 

that coincides with the 

termination date for the 

policy with the delinquent 

debt or, if there is no 

coincidental termination 

date, the termination date 

immediately following the 

date you become ineligible;

(D) For execution of a written 

payment agreement and 

failure to make any 

scheduled payment, the 

termination date for the 

policy year prior to the policy

year in which you failed to 

make the scheduled 

payment (for this purpose 

only, the policy year will start 

the day after the termination 

date and end on the next 

termination date, e.g., if the 

termination date is March 15 

and you fail to make a 

payment on March 15, 2015,

your policy will terminate on 

March 30, 2015, for the 2016

policy year); or

(E) For dismissal of a 

bankruptcy petition before 

discharge, the termination 

date the policy was or would 

have been terminated under 

sections 4(g)(2)(i)(A), (B) or 

(C).

(ii) For all policies terminated under 

sections 4(g)(2)(i)(A), (B), (D) or 

(E), any indemnities, or 

replanting payments paid 

subsequent to the termination 

date must be repaid.

(iii) Once the policy is terminated, it 

cannot be reinstated for the 

current policy year unless:

(A) The termination was in error;

(B) The Administrator of the 

Risk Management Agency, 

at their sole discretion, 

determines in accordance 

with 7 CFR part 400, subpart 

U and FCIC issued 
Page 17 of 55

procedures that the following 

are met:

(1) You provide 

documentation that your 

failure to pay your debt 

is due to an unforeseen 

or unavoidable event or 

an extraordinary 

weather event that 

created an impossible 

situation for you to make 

timely payment;

(2) You remit full payment of 

the delinquent debt 

owed to us or FCIC with 

your request submitted 

in accordance with 

section 4(g)(2)(iii)(B)(3);

(3) You submit a written 

request for 

reinstatement of your 

policy to us no later than 

60 days after the 

termination date or the 

missed payment date of 

a previously executed 

written payment 

agreement, or the due 

date specified in the 

notice to you of the 

amount due, if 

applicable;

(4) If authorization for 

reinstatement is 

granted, your policies 

will be reinstated 

effective at the 

beginning of the policy

year for which you were 

determined ineligible, 

and you will be entitled 

to all applicable benefits 

under such policies, 

provided you meet all 

eligibility requirements 

and comply with the 

terms of the policy; and

(5) There is no evidence of 

fraud or 

misrepresentation.

(C) We determine, in 

accordance with 7 CFR part 

400, subpart U and FCIC 

issued procedures, that the 

following are met:

(1) You can demonstrate:

(i) You acted in good 

faith when you 

made timely 

payment and you 

omitted the most 

recent month’s 

interest or the 

amount of the 

payment was clearly 

transposed from the 

amount that was 

otherwise due; or

(ii) You acted in good 

faith when you 

made the payment 

and the payment 

was delayed and 

postmarked by no 

more than 7 

calendar days after 

the termination date 

or the missed 

payment date of a 

previously executed 

written payment 

agreement, or the 

due date specified in 

the notice to you of 

the amount due, if 

applicable.

(2) You remit full payment of 

the delinquent debt 

owed to us; and

(3) You submit a written 

request for 

reinstatement of your 

policy to your agent no 

later than 30 days after 

the termination date or 

the missed payment 

date of a previously 

executed written 

payment agreement, or 

the due date specified in 

the notice to you of the 

amount due, if 

applicable; and

(4) There is no evidence of 

fraud or 

misrepresentation.

(iv) A determination made in section 

4(g)(2)(iii)(B) exhausts all 

administrative remedies for 

purposes of termination.

(h) Any person may sign any document 

relative to crop insurance coverage on 
Page 18 of 55

behalf of any other person covered by 

such a policy, provided that the person 

has a properly executed power of 

attorney or such other legally sufficient 

document authorizing such person to 

sign. You are still responsible for the 

accuracy of all information provided on 

your behalf and may be subject to the 

consequences in section 15(j), and any 

other consequences, including 

administrative, criminal, or civil 

sanctions, if any information has been 

misreported.

(i) Notwithstanding subsection 4(c), if you 

are a carryover insured your policy will be 

cancelled, effective as of the cancellation 

date, if we do not receive the reports 

required under section 15(a) on or before 

the sales closing date.

5. Contract Changes

(a) The contract change date is August 31 of 

the calendar year preceding the policy

year.

(b) The terms and conditions of this policy 

may change from year to year.

(1) Any changes to this policy, including 

the applicable policy provisions or 

the actuarial documents, will be 

published on RMA’s website not later 

than the contract change date.

(2) After the contract change date 

information may be revised only to 

correct obvious errors.

(3) After the contract change date, all 

changes made in accordance with 

this section will be available upon 

request from your crop insurance 

agent.

(c) We will provide you, in writing, with a 

copy of changes to this policy, any other 

applicable policy provisions, and the 

actuarial documents, not later than 30 

days prior to the cancellation date for the 

policy year. If available from us, you may 

elect to receive these documents and 

changes electronically.

(d) Your acceptance of all changes made in 

accordance with this section will be 

conclusively presumed in the absence of 

notice from you to change or cancel your 

insurance.

6. Notices

(a) All notices required to be given by you 

must be in writing and received by your 

crop insurance agent within the 

designated time unless otherwise 

provided by the notice requirement.

(1) Notices required may be given by 

telephone, in person, or 

electronically and confirmed in 

writing.

(2) The date the notice is provided will 

be determined by the date of our 

receipt of the written notice.

(3) If the date by which you are required 

to submit a report or notice falls on 

Saturday, Sunday, or a Federal 

holiday, or if your agent’s office is, for 

any reason, not open for business on 

the date you are required to submit 

the notice or report, the notice or 

report must be submitted on the next 

business day.

(b) All policy provisions, notices, and 

communications we are required to send

to you will be:

(1) Provided by electronic means, 

unless:

(i) We do not have the ability to 

transmit the information to you 

by electronic means; or

(ii) You elect to receive a paper 

copy of such information;

(2) Sent to the email address or physical 

address contained in your records 

located with your crop insurance 

agent.

(c) All notices will be conclusively presumed 

to have been received by you. You 

should advise us immediately of any 

change of address.

7. Record Retention and Access to Insured 

Commodities and Records

(a) For a period of three years after the end 

of the insurance period, or three years 

after the date of final payment of the 

indemnity, whichever is later, you must 

retain and provide upon our request, or 

the request of any employee of USDA 

authorized to investigate or review any 

matter relating to insurance authorized 

under the Act, complete verifiable 

records and direct marketing sales 

records pertaining to:

(1) The planting, replanting, inputs, 

production, harvest, storage, sale,

shipment, and disposition of the 

insured commodities;

(2) Your land and facilities;

(3) The allowable revenue stated on the 

farm tax forms, including all forms 
Page 19 of 55

and records supporting these 

figures, for the entire whole-farm 

history period;

(4) The value of post-production 

operations and market readiness 

operations for your insured 

commodities;

(5) The beginning and ending inventory

information;

(6) Accounts receivable information; 

(7) All lease or other agreements that 

may be applicable to the insured 

commodities; and

(8) Expenses stated on the farm tax 

forms, including all forms and 

records supporting these figures.

(b) By signing the application for insurance 

authorized under the Act or by continuing 

insurance for which you have previously 

applied, you authorize us or USDA, or 

any person acting for us or USDA 

authorized to investigate or review any 

matter relating to insurance authorized 

under the Act, to obtain records relating 

to the planting, replanting, lease, 

ownership, share, production, inputs, 

harvesting, disposition, or marketing 

contract agreements of the insured 

commodity 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. You must assist in 

obtaining all records we or any employee 

of USDA, or any person acting for us or 

USDA authorized to investigate or review 

any matter relating to insurance 

authorized under the Act, requests from 

third parties.

(c) We, any employee of USDA, or any 

person acting for us or USDA authorized 

to investigate or review any matter 

relating to insurance authorized under 

the Act:

(1) May extend the record retention 

period beyond three years by 

notifying you of such extension in 

writing; and

(2) Have the right to examine, as often 

as reasonably required during the 

record retention period:

(i) The insured commodities on the 

farm operation or at any location 

where the commodities may be 

found or maintained; and

(ii) All records related to the insured 

commodities, this policy, and 

mediation, arbitration or litigation 

involving the insured 

commodities, at any location 

where the records may be found 

or maintained.

(d) Failure to provide access to the insured 

commodities or 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.

8. (Reserved)

Your Coverage

9. Coverage

(a) This policy insures the approved revenue 

that you earn or expect to earn from all 

commodities that you produce or 

purchase for resale during the insurance 

period and in which you have an 

insurable interest.

(b) We must determine the commodity count 

for your farm according to section 19. 

This count will be used to determine your 

eligibility for WFRP, your subsidy 

amount, and to calculate your 

diversification discount.

(c) You must choose one coverage level as 

shown in the actuarial documents for the 

policy year

(1) Catastrophic risk protection is not 

available under this policy.

(2) If you were insured last year under 

WFRP you may change your 

coverage level for this year by giving 

us written notice by the sales closing 

date. However, you may not 

increase your coverage level if any 

cause of loss that could, or would, 

reduce your allowable revenue for 

the policy year is evident prior to the 

time you request the increase.

(d) You may insure individual commodities 

under other FCIC reinsured policies in 

addition to your purchase of WFRP.

(e) Both your Farm Operation Report and 

Whole-Farm History Report, adjusted as 
Page 20 of 55

applicable to reflect allowable revenue,

are used to determine the approved 

revenue used to calculate the insured 

revenue under this policy.

(f) Your insured revenue will be determined 

by multiplying your approved revenue by 

the coverage level and an indemnity will 

be due under this policy if your revenueto-count for the policy year falls below 

your insured revenue.

(g) We will reduce your approved revenue 

and any indemnity or deny coverage at 

any time we become aware that the 

information used to determine your 

approved revenue is incorrect or is not 

supported by verifiable records. Your 

premium will be adjusted to reflect any 

revised approved revenue.

(h) A replant payment may be allowed if

specified in the Special Provisions.

(i) In accordance with section 9(j), for native 

sod acreage in the states of Iowa, 

Minnesota, Montana, Nebraska, North 

Dakota, or South Dakota, your insured 

revenue for the first four policy years of 

planting an annual crop on more than five 

acres of native sod acreage in any county 

will be adjusted to 65 percent of the 

approved revenue for those native sod 

acreage.

(j) Section 9(i) is applicable during:

(1) The first four policy years of planting 

on native sod acreage that has been 

tilled beginning on February 8, 2014, 

and ending on December 20, 2018; 

and

(2) Four cumulative policy years of 

insurance within the first ten years 

after initial tillage on native sod 

acreage tilled after December 20, 

2018.

(k) Your coverage will begin:

(1) For the first year you obtain coverage 

under this policy, your coverage will 

begin the later of;

(i) The beginning of your tax year; 

or

(ii) 10 days after our acceptance of 

your application; or

(2) If you are a carry-over insured, the 

beginning of your tax year.

10. Allowable Revenue

(a) Allowable revenue for WFRP purposes is 

limited to the revenue from:

(1) 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);

(2) The sales of animals, produce, 

grains and other commodities you 

raised. (Line 2 of Schedule F.);

(3) The taxable amount of total 

cooperative distributions (line 3b of 

Schedule F) (Include only those 

directly related to the sale of insured 

commodities (e.g., distributions for 

corn, not fertilizer); and

(4) Other revenue, including Federal 

and State gasoline or fuel tax credit 

or refund (line 8 of Schedule F) 

(exclude Federal and State gasoline 

or fuel tax credits or refunds if 

reported on this line). Include all 

revenue directly related to the 

production of commodities that the 

IRS requires you to report, including, 

but not limited to:

(i) Revenue from bartering (This 

amount will be determined in 

accordance with IRS rules.); and

(ii) Payments from buyers of 

commodities for bypassed 

acreage (these are payments 

made to you in accordance with 

a marketing contract between 

you and a buyer for not 

harvesting your crop).

(b) Allowable revenue specifically excludes:

(1) Revenue from any post-production 

operations;

(2) Net gain from commodity hedging or 

speculation;

(3) Revenue from commodities in which 

you do not have an insurable 

interest;

(4) Revenue earned from custom hire or 

rental activities;

(5) Cooperative distributions that are not 

directly related to the sale of an

insured commodity;

(6) Revenue earned as an animal 

contract grower;

(7) Revenue from wages, salaries, tips, 

and cash rent;

(8) Revenue from government 

agricultural programs, including the 

Non-insured Assistance Program 

(NAP), and disaster payments;

(9) Revenue from uninsurable 

commodities, such as, animals for 
Page 21 of 55

show or sport, timber, forest and 

forest products, and controlled 

substances;

(10) Crop insurance indemnities,

prevented planting payments from 

other FCIC reinsured policies, and 

replant payments;

(11) CCC loans repaid (except those 

repaid by a third-party buyer);

(12) Value assigned for uninsured cause 

of loss or abandoned acreage; and

(13) Accrual adjustments for beginning 

and ending accounts receivable and 

inventories.

11. (Reserved)

12. Your Approved Revenue

(a) Your approved revenue is the LOWER of 

your whole-farm historic average 

revenue or your total expected revenue

and will be determined on the Farm 

Operation Report.

(b) If you are a carryover insured and your 

average allowable revenue is less than 

90 percent of your previous year’s 

approved revenue, you may elect to use 

90 percent of your previous year’s 

approved revenue instead of your wholefarm historic average revenue when 

determining your approved revenue.

13. Share Insured

(a) Insurance will be provided against loss of 

revenue only on your insurable interest of 

the commodities on your farm operation 

and will not extend to any other person 

having a share in the agricultural 

operation.

(b) This policy may not be transferred to any 

person except upon death of the insured 

provided farm taxes are still filed for the 

insured operation.

(c) If the farm operation is sold during the 

insurance period, the coverage provided 

by this policy may not be transferred. 

You will still be required to pay the 

premium due.

14. Administrative Fees, Subsidy, and Annual 

Premium

(a) The administrative fee:

(1) Is $30, or an amount specified in the 

Special Provisions, as applicable;

(2) Must be paid no later than the time 

premium is due;

(3) The administrative fee will be waived 

if you request it and:

(i) You qualify as a beginning 

farmer or rancher or as a veteran 

farmer or rancher; or

(ii) You qualify as a limited resource 

farmer.

(4) Failure to pay the administrative fee 

when due may make you ineligible 

for certain other USDA benefits.

(b) Your farm premium rate is determined 

by:

(1) Dividing the expected revenue from 

commodities for each unique rate 

code on your Revised Farm 

Operation Report by your total 

expected revenue to calculate the 

percent of expected revenue for 

each rate code;

(2) Multiplying each result of paragraph 

(1) by the premium rate shown in the 

actuarial documents for that rate 

code;

(3) Summing the result of paragraph (2) 

for all rate codes on the Farm 

Operation Report to calculate the 

farm premium rate before applying 

your diversification discount;

(4) Determining your commodity count 

based on your Revised Farm 

Operation Report using the formula 

in section 19(c);

(5) Dividing 1 by the result of paragraph

(4) (round to three decimals);

(6) Calculating your diversification 

discount by:

(i) Summing the result of paragraph 

(b)(1) for each commodity code;

(ii) Subtracting the result of 

subparagraph (6)(i) for each 

commodity code from the result 

of paragraph (b)(5). Ignore any 

negative mathematical signs and 

record each number as a 

positive number;

(iii) Sum the results of subparagraph (6)(ii) to calculate the 

deviation (DEV) number (round 

to three decimals);

(iv) Using the appropriate formula 

selected from the special 

provisions based on the 

commodity count determined in 

paragraph (4), substitute the 

result of paragraph (6)(iii) where 

DEV appears in the formula and 

then calculate the diversification 
Page 22 of 55

discount (round to three 

decimals); and

(7) Multiplying the result of paragraph 

(3) by your diversification discount

from paragraph (6) and any other 

rate adjustment factors that may 

apply to determine your farm 

premium rate (round to 3 decimals).

(c) If you choose to purchase other 

individual FCIC reinsured policies at an 

additional coverage level which could 

compensate you for damage to, or loss 

of, commodities insured under WFRP 

and you have not elected to exclude 

these policies from becoming primary 

insurance under section 30(b)(1), for 

premium calculation purposes only, your 

insured revenue will be adjusted to reflect 

these purchases. The adjustment to your 

insured revenue amount will be 

calculated by:

(1) Adding together the total liability 

amount of all other FCIC reinsured

policies purchased at an additional 

coverage level. (For policies where 

the liability can change during the 

coverage period, the liability used for 

the purpose of this paragraph will be 

that used to determine the amount of 

premium of that policy.);

(2) Dividing your insured revenue by two 

to calculate the maximum 

adjustment; and

(3) Subtracting the smaller of paragraph 

(1) or paragraph (2) from your 

insured revenue to determine the

insured revenue to use for premium 

calculation purposes.

(d) Your total premium amount is calculated 

by:

(1) Multiplying your farm premium rate 

from subsection (b)(7) by:

(i) If you chose to purchase other 

FCIC reinsured policies and did 

not choose to exclude those 

policies from becoming primary 

insurance, the result of 

subsection (c)(3); or

(ii) Your insured revenue; and

(2) Multiplying the result from paragraph

(1) by any premium adjustment 

amounts that may apply to calculate 

the total premium.

(e) The information needed to determine 

your farm premium rate and any premium 

adjustment percentages that may apply 

are contained in the actuarial documents.

(f) To calculate the premium amount you will 

pay after premium subsidy:

(1) Your subsidy amount will be based 

on the commodity count determined 

in 19(c), and the table specified in the 

actuarial documents;

(2) Multiply the total premium amount 

calculated in subsection (d)(2) by the 

applicable subsidy rate found in the 

actuarial documents; and

(3) Subtract the result of paragraph (2) 

from the result of subsection (d)(2).

(g) Your premium amount will be calculated 

based on your Revised Farm Operation 

Report. If you make changes to your 

farm operation following submission of 

your Revised Farm Operation Report, we 

may revise your premium amount 

accordingly.

(h) The amount of premium calculated in 

accordance with this section is earned 

when your application is accepted. You 

will be billed for your premium and the 

applicable administrative fee not earlier 

than the premium billing date.

(1) The total due, plus any accrued 

interest, will be considered 

delinquent if it is not paid on or before 

the termination date.

(2) Premium must be paid by the 

termination date regardless of 

whether a claim is pending.

(i) If the amount of premium (total premium 

less premium subsidy paid on your behalf 

by FCIC) and administrative fee you are 

required to pay for this policy exceeds 

your insured revenue, coverage will not 

be provided (no premium or 

administrative fee will be due and no 

indemnity will be paid).

(j) Premium and administrative fees owed 

by you for a policy year will be offset from 

any indemnity due to you for that policy 

year.

(k) If you qualify as a beginning farmer or 

rancher or veteran farmer or rancher, 

your premium subsidy will be 10 

percentage points greater than the 

premium subsidy that you would 

otherwise receive, unless otherwise 

specified in the Special Provisions.

(l) You will be ineligible for any premium 

subsidy paid on your behalf by FCIC for 

any policy issued by us if:
Page 23 of 55

(1) USDA determines you have 

committed a violation of the highly 

erodible land conservation or 

wetland conservation provisions of 7 

CFR part 12 as amended by the 

Agricultural Act of 2014; or

(2) You have not filed form AD-1026 with 

FSA for the reinsurance year by the 

premium billing date.

(i) Notwithstanding section 14(l)(2), 

you may be eligible for premium 

subsidy without having a timely 

filed form AD-1026:

(A) For the initial reinsurance 

year if you certify by the 

premium billing date for your 

policy that you meet the 

qualifications as outlined in 

FCIC approved procedures 

for producers who are new 

to farming, new to crop 

insurance, a new entity, or 

have not previously been 

required to file form AD1026; or

(B) If FSA approves relief for 

failure to timely file due to 

circumstances beyond your 

control or failure to timely 

provide adequate 

information to complete form 

AD-1026 in accordance with 

the provisions contained in 7 

CFR part 12.

(ii) To be eligible for premium 

subsidy paid on your behalf by 

FCIC, it is your responsibility to 

assure you meet all the 

requirements for:

(A) Compliance with the 

conservation provisions 

specified in section 14(l)(1) 

of this section; and

(B) Filing form AD-1026 to be 

properly identified as in 

compliance with the 

conservation provisions 

specified in section 14(l)(1) 

of this section.

(m) Notwithstanding paragraph (l)(2) of this 

section, if you demonstrate you began 

farming for the first time after June 1 and 

prior to the beginning of the reinsurance 

year (July 1), you may be eligible for 

Federal crop insurance premium subsidy 

for the subsequent reinsurance year.

(n) Except as provided in section 14(o), and 

in accordance with section 14(p), in the 

states of Iowa, Minnesota, Montana, 

Nebraska, North Dakota, or South 

Dakota, your premium subsidy for the 

portion of your expected revenue for 

native sod acreage will be reduced by 50 

percentage points. If the premium 

subsidy applicable to that portion of your 

revenue is less than 50 percent before 

reduction, you will receive no premium 

subsidy.

(o) Section14(n) is not applicable to 

cumulative native sod acreage that is five 

acres or less in the county.

(p) Section 14(n) is applicable during:

(1) The first four policy years of planting 

on native sod acreage that has been

tilled beginning on February 8, 2014,

and ending on December 20, 2018;

and

(2) Four cumulative policy years of 

insurance within the first ten years

after initial tillage on native sod

acreage tilled after December 20,

2018.

15. Required Reports

(a) On or before the sales closing date for 

each policy year you must provide:

(1) Your completed Whole-Farm History 

Report in accordance with section 

16; and

(2) Your Intended Farm Operation 

Report in accordance with section 

17.

(b) For each policy year, you must provide 

an Inventory Report with your beginning 

inventory, and a Beginning Accounts 

Receivable Report. These reports must 

be submitted by:

(1) The sales closing date if you are a

calendar year filer; or

(2) The later of the date you submit your 

application or the last day of the 

month in which your fiscal year 

begins if you are an early fiscal year 

filer or late fiscal year filer.

(3) If you do not report your beginning 

inventory for a commodity by the 

required date, no adjustment to 

revenue-to-count will be made for 

that commodity based on your 

inventory report when determining 

your claim.

(c) You must provide a Revised Farm 

Operation Report by July 15 following the 
Page 24 of 55

sales closing date, unless otherwise 

specified in the Special Provisions.

(d) You must notify us within 30 days if you 

make changes to the commodities grown 

on your farm after the Revised Farm 

Operation Report is completed and we 

may revise your premium amount based 

on these changes, except those resulting 

from a covered cause of loss.

(e) If you lose an annual commodity and are 

able to replant the commodity under 

good farming practices, you may request 

a replant payment under this policy. You 

must notify us within 72 hours of the 

discovery of damage to request a replant 

payment.

(f) If you have a loss under this policy;

(1) You must provide us with a notice of 

loss within 72 hours of your initial 

discovery that your allowable 

revenue for the policy year could fall 

below the insured revenue; and

(2) You must submit a Claim for 

Indemnity Report not later than 60 

days after the earlier of:

(i) The date you file your farm tax 

forms with the IRS; or

(ii) The original date that your farm 

tax forms must be provided to 

the IRS, as specified by IRS.

(g) You must complete the Final Farm 

Operation Report by providing actual 

production and revenue information by 

commodity at the earliest of the time an 

indemnity is claimed for the insurance 

period or by the sales closing date for the 

following policy year, unless otherwise

specified in the Special Provisions.

(h) If you have any of the following special 

circumstances on your farm operation, 

the following sections of this policy apply 

to your insurance and you may be 

required to file additional reports or 

worksheets:

(1) Organic Commodities: If you use 

organic farming practices, you must 

comply with the requirements of 

section 44.

(2) Post-Production Operations and 

Added Value: If you sell 

commodities that include value from 

post-production operations, you 

must comply with the requirements 

of section 45.

(3) Animals and Animal Products: If you 

have animals or animal products, 

you must comply with the 

requirements of section 46.

(4) Nursery and Greenhouse

Commodities: If you have nursery or 

greenhouse commodities, you must 

comply with the requirements of 

section 47.

(5) Marketing Contracts. If you have 

commodities produced under a 

marketing contract, you must comply 

with the requirements of section 48.

(6) Expanded Operations: If your 

operation has physically expanded

and you wish to increase the amount 

of insurance protection, you must 

comply with the requirements of 

section 49.

(7) Industrial Hemp: If your farm 

operation includes industrial hemp 

you must comply with the reporting 

requirements of section 50 and any 

additional Federal or state reporting 

requirements for industrial hemp in 

the location the industrial hemp will 

be produced.

(8) Direct Marketing: If your operation 

sells commodities through direct 

marketing, you must comply with the 

requirements of section 51.

(i) If you fail to timely submit any required

information, or we are unable to verify the 

information that was submitted, we will 

deny any indemnity, or replant payment 

and you will still be required to pay the 

premium due.

(j) You must provide, sign and certify all 

required reports and you are responsible 

for the accuracy of all information 

contained in those reports. You should 

verify the information on all reports prior 

to submitting them to us. If you submit 

information on any report that is different

than what is determined to be correct and 

the information you originally submitted 

resulted in:

(1) A lower insured revenue than the 

corrected insured revenue, the 

insured revenue under this policy will 

remain consistent with the reported 

information and all revenue will be 

included as revenue to count; or

(2) A higher insured revenue than the 

corrected insured revenue, the 

information contained in the Farm 

Operation Report will be revised to 

be consistent with the correct 
Page 25 of 55

information and your insured 

revenue will be lowered to the correct 

amount.

(k) If we discover you have incorrectly 

reported any information on your reports

for any policy year, corrections may be 

made if authorized in section 41 but you 

may be required to provide 

documentation in subsequent policy

years substantiating your reports for 

those policy years, including, but not 

limited to, an acreage measurement 

service at your own expense. If the 

correction of any misreported information 

would affect an indemnity, or replant 

payment that was paid in a prior policy

year, the claim will be adjusted and you 

will be required to repay any overpaid 

amounts.

(l) Errors in reporting may be corrected by 

us at any time we discover the incorrect 

information unless corrections are 

authorized in section 41.

16. Your Whole-Farm History Report and 

Whole Farm Historic Average Revenue

(a) On or before the sales closing date for 

each policy year, you must provide a 

completed Whole-Farm History Report 

and the following documentation:

(1) A Schedule F tax form or other farm 

tax form for each year in your 5-year 

whole-farm history period, except as 

provided in section 3(b). 

(i) If you use a farm tax form that is 

not the Schedule F, you must 

complete a Substitute Schedule 

F;

(ii) Your Substitute Schedule F 

worksheet must contain all 

information that would appear on 

a Federal Schedule F tax form 

and must be sufficient to 

complete your Allowable 

Revenue Worksheet.

(2) An Allowable Revenue Worksheet 

for each year in your whole-farm 

history period; and

(3) Other signed tax forms needed to 

verify your entity information and as 

requested by us. For example, if 

your farm includes a disregarded 

entity for tax purposes, we may 

request other tax forms to verify the 

entity information under which your 

farm taxes were filed.

(b) If you have five years of farm tax forms in 

your whole-farm history period, your 

average allowable revenue will be 

determined as follows:

(1) To calculate your simple average 

allowable revenue:

(i) Sum the allowable revenue from 

each year in your whole-farm 

history period; and

(ii) Divide the result of 

subparagraph (i) by 5.

(2) If the allowable revenue from any 

year in your whole farm history 

period is less than 60 percent of your 

simple average allowable revenue, 

you may elect to use 60 percent of 

your simple average allowable 

revenue for that year when 

calculating your average allowable 

revenue; or

(3) You may elect to exclude one of the

years in your whole-farm history 

period when calculating your 

average allowable revenue.

(4) To calculate your average allowable 

revenue:

(i) Sum the allowable revenue from 

each year in your whole-farm 

history period, after any 

applicable adjustments; and

(ii) Divide the result of 

subparagraph (i) by the number 

of years of farm tax forms in your 

whole-farm history period, not 

including any year excluded 

under paragraph (4) of this 

subsection.

(c) If you have less than five years of farm 

tax forms in your whole farm history 

period and you are eligible for insurance 

under this policy as provided by section 

3(b)(6) or (7);

(1) On or before the sales closing date, 

you must provide a completed 

Substitute Schedule F Worksheet

and Allowable Revenue Worksheet 

reflecting the revenue earned by 

your farm operation during your lag 

year.

(2) If you have four years of tax records 

in your whole-farm history period

your average allowable revenue will 

be calculated as follows:

(i) Sum the allowable revenue from 

each year in your whole-farm 

history period;
Page 26 of 55

(ii) Add to the result of clause (i) the 

allowable revenue from the 

Allowable Revenue Worksheet 

required by section 16(c)(1); and

(iii) Divide the result of clause (ii) by 

5, or by 4 if you have chosen to 

exclude a year under paragraph 

(5) of this subsection.

(3) If you have three years of tax records 

in your whole-farm history period

your average allowable revenue will 

be calculated as follows:

(i) Sum the allowable revenue from 

each year in your whole-farm 

history period;

(ii) Add to the result of clause (i) the 

allowable revenue from the 

Allowable Revenue Worksheet 

required by section 16(c)(1);

(iii) Determine the lowest allowable 

revenue from the three years of 

tax records in your whole-farm 

history period and the allowable 

revenue from section 16(c)(1);

(iv) Add to the result of clause (ii) the 

result of clause (iii); and

(v) Divide the result of clause (iv) by 

5, or by 4 if you have chosen to 

exclude a year under paragraph 

(5) of this subsection.

(4) If the allowable revenue from any 

year in your whole farm history 

period or your lag year is less than 60 

percent of your simple average 

allowable revenue, you may elect to 

use 60 percent of your simple 

average allowable revenue for that 

year when calculating your average 

allowable revenue; or

(5) You may elect to exclude one of the 

years in your whole-farm history 

period or lag year when calculating 

your average allowable revenue. 

(6) You must provide your farm tax 

forms, and other signed tax forms as 

requested by us, for your lag year not 

later than 60 days after they are filed 

with the IRS.

(d) If you have five years of farm tax forms in 

your whole-farm history period (farms 

eligible for WFRP under section 3(b)(6) 

or (7) do not qualify for indexing) and the 

allowable revenue in either of the two 

most recent tax years in your whole-farm 

history period is greater than your simple 

average allowable revenue, you may 

qualify for indexing: 

(1) To determine the indexed revenue 

for each year in your whole-farm 

history period: 

(i) Divide each tax year’s allowable 

revenue by the preceding tax 

year’s allowable revenue, 

rounding the result to three 

decimal places, with a maximum 

set at 1.200, and minimum set at 

0.800:

(ii) Sum the results of paragraph (i)

and divide the total by 4, with a 

minimum of 1.000 to determine 

the revenue trend factor;

(iii) Raise the revenue trend factor to 

the sixth power and multiply the 

result by the allowable revenue 

of the first year in the whole-farm 

history period to obtain the

indexed revenue for the first year 

in the whole-farm history period;

(iv) Raise the revenue trend factor to 

the fifth power and multiply the 

result by the allowable revenue 

of the second year in the wholefarm history period to obtain the 

indexed revenue for the second 

year in the whole-farm history 

period;

(v) Raise the revenue trend factor to 

the fourth power and multiply the 

result by the allowable revenue 

of the third year in the wholefarm history period to obtain the 

indexed revenue for the third 

year in the whole-farm history 

period;

(vi) Raise the revenue trend factor to 

the third power and multiply the 

result by the allowable revenue 

of the fourth year in the wholefarm history period to obtain the 

indexed revenue for the fourth 

year in the whole-farm history 

period;

(vii) Raise the revenue trend factor to 

the second power and multiply 

the result by the allowable 

revenue of the fifth year in the 

whole-farm history period to 

obtain the indexed revenue for 

the fifth year in the whole-farm 

history period;
Page 27 of 55

(2) Sum the indexed revenue from each 

year and divide the result by 5 to 

calculate your simple average 

indexed revenue;

(3) If the indexed revenue from any year 

in your whole farm history period is 

less than 60 percent of your simple 

average indexed revenue, you may 

elect to use 60 percent of your simple 

average indexed revenue for that 

year when calculating your indexed 

average revenue; or

(4) You may elect to exclude one of the

years in your whole-farm history 

period when calculating your indexed 

average revenue.

(5) To calculate your indexed average 

revenue, sum the indexed revenue 

from each year in your whole-farm 

history period not excluded under 

paragraph (4) and divide by the 

number of such years, not to exceed 

the highest allowable revenue of any 

year in your whole-farm history 

period.

(f) If you can show us your operation is 

physically expanding, your expanded 

operation adjusted revenue will be 

calculated in accordance with section 49;

(g) If you purchase, inherit, or lease another 

person’s farm operation you may use 

their tax returns when completing your 

Whole Farm History Report, including 

adding the amounts to your allowable 

revenue for the particular year, if:

(1) You obtain control of at least 90 

percent of the other person’s farm 

operation, which includes the land 

and facilities, such as irrigation 

equipment and systems, 

greenhouses, and other facilities;

(2) For each year of the other person’s 

tax returns that you intend to use, the 

other person:

(i) Had an insurable interest in all 

commodities produced on the 

farm operation you obtained; 

(ii) Filed Federal income taxes for 

the revenue received from those 

commodities; and

(iii) Is willing to provide all records 

necessary under this policy 

including the farm tax forms;

(3) On or before the sales closing date, 

you submit to us:

(i) A written request to use the other 

person’s farm tax forms for the 

specific years;

(ii) A copy of the other farm tax 

forms for each specific year;

(iii) Verifiable documentation that:

(A) At least 90 percent of the 

other person’s farm 

operation was obtained by 

you and added to your farm 

operation; and

(B) The other person whose 

farm tax forms you wish to 

use had an insurable interest 

in all commodities produced 

on the farm operation you 

obtained; and

(iv) A completed and signed WholeFarm History Report that 

represents the combination of 

your allowable revenue and the 

allowable revenue for the other 

person’s farm tax forms you wish 

to use for the applicable years; 

and

(4) Within 15 days of our request, you 

provide:

(i) Verifiable documentation that 

supports the revenue on the 

other person’s farm tax forms; 

and,

(ii) Verifiable documentation of all 

market readiness operations and 

post-production operations 

related to the other person’s farm 

operation for the tax year’s you 

wish to use.

(5) We will not approve the use of 

another persons’ tax returns if:

(i) All requirements in subsection 

(c) are not met; and

(ii) Obtaining the farm operation or 

the change in person type was 

done to circumvent any tax law 

or any program eligibility criteria, 

including evading ineligibility for 

program benefits under 7 CFR 

part 400, subpart U.

(6) We will notify you whether your 

request to use another person’s farm 

tax forms is approved or denied 

within 15 days of receiving all 

required information.

(i) If we approve your request, your 

allowable revenue and the 

allowable revenue of the other 
Page 28 of 55

person will be combined for each 

applicable year.

(ii) If we deny your request to use 

any of the other person’s farm 

tax forms, your Whole-Farm 

History Report, and all other 

applicable reports, will be 

modified to reflect only the 

approved allowable revenue 

from your farm tax returns for 

each applicable year.

(h) Your whole-farm historic average 

revenue is equal to the HIGHER of:

(1) Your average allowable revenue;

(2) Your expanded operation adjusted 

revenue, if approved; or 

(3) Your indexed average revenue.

(i) For the initial policy year, we will notify 

you if the whole-farm historic average 

allowable revenue we determine to be 

correct is less than 95 percent of the 

whole-farm historic average allowable 

revenue stated on the Whole-Farm 

History Report you submitted.

(1) If we provide you such notification:

(i) You may submit a written 

request for reconsideration; and

(ii) Such requests must be made not 

later than 30 days after the date 

we provided such notification.

(2) If you do not request reconsideration, 

we will revise your Whole-Farm 

History Report to reflect the amount 

of allowable revenue we determine 

to be correct for each year in your 

whole-farm history period.

(3) Changes to your Whole-Farm 

History Report may also result in 

changes to your Farm Operation 

Report, resulting approved revenue, 

insured revenue, and your premium 

amount.

17. Your Farm Operation Report

(a) On or before the sales closing date for 

each policy year, you must provide a 

completed Intended Farm Operation 

Report to include:

(1) Detailed information for each 

intended commodity you plan to 

produce or purchase for resale on 

your farm operation during the 

insurance period. The information 

should reflect what your farm can 

reasonably produce given changes 

in your farm operation, availability of 

irrigation water supply, damage that 

occurred prior to the beginning of the 

insurance period, or any other 

changes that may affect your farm in 

the insured year compared to 

previous years; and

(2) Your expected revenue for each 

intended commodity reported in 

paragraph (1), with expected yields 

reflecting the amount of salable 

production and expected values 

reflecting the expected sale price by 

markets where the crop is normally 

sold as of the date your Intended 

Farm Operation Report is completed.

(3) If you have multiple types or 

practices of an intended commodity 

that have different values, you 

should enter the commodity on 

multiple lines with the appropriate 

expected values and expected yields

(listing one commodity on multiple 

lines identified with the same 

commodity code does not alter the 

number of commodities determined 

in section 19).

(4) If your Intended Farm Operation 

Report shows that your expected 

revenue from animals and animal 

products or greenhouse and nursery 

products is greater than $2 million, 

your expected revenue from animals 

and animal products or nursery and 

greenhouse products will be capped 

at $2 million each. The limits to 

expected revenue from animals and 

animal products or nursery and 

greenhouse products do not apply to 

aquaculture commodities.

(b) For the initial policy year, you must report 

to us any damage that has occurred to 

any commodity already established on 

your farm operation at the time you 

complete your application.

(1) Your expected revenue on the 

Intended Farm Operation Report for 

these commodities must reflect any 

reduction in potential revenue for the 

policy year caused by damage that 

occurred prior to acceptance of your 

application.

(2) If you grow a perennial commodity,

you must complete a PreAcceptance Worksheet each year. 

We may inspect the condition of any 

perennial commodity, and will 

inspect any perennial commodity 
Page 29 of 55

damaged prior to the beginning of 

the insurance period;

(3) We will make applicable reductions 

to your Intended Farm Operation 

Report based on our inspection of 

any damaged commodities, and our 

estimate of the effect of these 

conditions.

(c) You must complete a Revised Farm 

Operation Report by the date specified in 

section 15.

(1) The information on the Revised Farm 

Operation Report must reflect any

changes you have made to the 

commodities grown on your farm 

from what you reported on the 

Intended Farm Operation Report.

(2) Your insured revenue, coverage 

level, commodity count, farm 

premium rate, and premium will be 

based on your Revised Farm 

Operation Report. If your Revised 

Farm Operation Report shows that:

(i) Your insured revenue would 

exceed $17 million, your insured 

revenue will be capped at $17

million and all revenue earned

will be considered revenue to 

count;

(ii) Your expected revenue from 

animals and animal products, 

other than aquaculture

commodities, is greater than $2

million, your expected revenue 

will be capped at $2 million of 

animal and animal products, and 

all revenue earned will be 

considered revenue-to-count;

(iii) Your expected revenue from 

nursery and greenhouse

commodities, other than 

aquaculture commodities, is 

greater than $2 million, your 

expected revenue will be capped 

at $2 million of nursery and 

greenhouse commodities, and 

all revenue earned will be 

considered revenue-to-count;

(iv) You do not have a minimum two 

commodity requirement, as 

determined by the commodity 

count calculation, for farms with 

potatoes because this limit is a 

legislated requirement under 

section 508(a)(3)(C) of the Act

your policy will be void and no 

coverage will be provided; 

(v) Your farm operation includes any 

revenue from controlled 

substances, your policy will be 

void and no coverage will be 

provided; or

(vi) Your expected revenue from 

commodities purchased for 

resale is greater than 50 percent

of your total expected revenue, 

your expected revenue from 

commodities purchased for 

resale will be limited to no more 

than the amount of expected 

revenue from commodities you 

will produce on your farm 

operation (including expected 

revenue from commodities lost 

due to insurable causes) and all 

revenue earned will be 

considered revenue-to-count;

(3) You cannot update your Farm 

Operation Report after the date the 

Revised Farm Operation Report is 

due without our consent.

(4) Expected values and expected yields 

used will be in accordance with the 

section 18 of this policy and will be 

calculated as of:

(i) The date the Intended Farm 

Operation Report is submitted

for commodities on the Intended 

Farm Operation Report; 

(ii) The date the Revised Farm 

Operation Report is submitted 

for commodities that are different 

than those submitted on the 

Intended Farm Operation Report

(expected values will be carried 

forward from the Intended Farm 

Operation Report for 

commodities on the Intended 

Farm Operation Report); 

(iii) The date of planting for 

commodities that were planted 

and reported after the Revised

Farm Operation Report date and 

for which a late revision is 

allowed by us; or

(iv) The date the marketing contract 

becomes effective for 

commodities produced under a 

marketing contract for the portion 

of expected production under 
Page 30 of 55

contract (subject to the limitation 

in section 17(c)(3)).

(5) If your Intended Farm Operation 

Report only includes expected

revenue from perennial commodities 

already established on your farm 

operation and no changes are 

anticipated, you may complete your 

Revised Farm Operation Report at 

the time you provide your Intended 

Farm Operation Report. You are still 

required to report any changes that 

occur within the insurance period, in 

accordance with section 15(d) of this 

policy.

(6) The source for each expected value 

and expected yield must be 

documented in accordance with 

section 18(f) at the time the expected 

value is determined in accordance 

with paragraph (4) of this subsection.

(d) If you were unable to establish an

intended commodity for which you 

reported expected revenue, or an 

intended commodity was destroyed prior 

to reaching maturity and not replanted, 

60% of the expected revenue from that 

commodity may be included as expected 

revenue on your Revised Farm 

Operation Report as follows:

(1) We must be able to verify that your 

failure to establish the intended 

commodity, or the destruction of the 

intended commodity, was due to a 

natural cause of loss which is

covered by this policy;

(2) If another commodity was raised to 

replace the intended commodity lost 

to a covered cause of loss, the 

expected revenue from the intended 

commodity must be offset by the 

expected revenue of the 

replacement commodity. For 

example, if you were unable to plant 

carrots because the acreage you 

intended to use was too wet and you 

later plant lettuce on the acreage, the 

expected revenue of the lettuce must 

be subtracted from the expected 

revenue of the carrots to determine 

the amount of expected revenue for 

carrots to include on your Revised 

Farm Operation Report; and

(3) If we can verify the commodity was 

not established or was destroyed 

due to an insurable cause, your 

commodity count will not be less than 

the commodity count reported on 

your Intended Farm Operation 

Report even if the commodity is 

replaced.

(e) If you modify the commodities on your 

farm operation for reasons other than a 

covered cause of loss, the changes to 

your farm operation should be shown on 

the Revised Farm Operation Report.

(1) Any intended commodity you chose 

not to produce that was included on 

the Intended Farm Operation Report, 

will not be shown on the Revised 

Farm Operation Report.

(2) Any intended commodity that was 

lost to an uninsured cause of loss 

and was not replaced with another 

commodity, the expected revenue of 

the lost commodity will be included in 

revenue to count.

(3) Any intended commodity that was 

lost to an uninsured cause of loss 

and another commodity was raised 

to replace the lost commodity will 

have the expected revenue of the 

initial commodity offset by the 

expected revenue of the 

replacement commodity.

(f) You must complete, and submit to us, the 

Production and Revenue section of the 

Final Farm Operation Report unless 

specified otherwise in the Special 

Provisions:

(1) The Production and Revenue section 

of the Final Farm Operation Report 

must be completed by the date 

specified in section 15(g);

(2) If the commodity is harvested and 

not sold, the Final Farm Operation 

Report should show the amount of 

production and a price using the 

expected value sources at the end of 

the insurance period;

(3) If commodity is not harvested, the 

Final Farm Operation Report should 

provide an estimate of the production

and a price using the expected value 

sources at the end of the insurance 

period;

(4) This information is used to rate 

WFRP and is required of all 

insured’s, whether an indemnity is 

claimed or not; and

(5) If this information is not provided you 

will be limited to a maximum 
Page 31 of 55

coverage level of 65 percent the year 

after the policy year.

18. Expected Value and Expected Yield

(a) Expected values and expected yields to 

use on the Farm Operation Report will be

based on the information reported by you 

and verified by us at the time the 

expected value is determined in 

accordance with section 17(c)(4).

(b) The price of the commodity is the price 

that you can expect to receive when the 

commodity is harvested and based on 

the following sources, in order of priority:

(1) If the commodity is under a 

marketing contract, the price will be 

the price contained in the marketing 

contract (see section 48 for detailed 

requirements regarding marketing 

contracts);

(2) If the commodity was sold during the 

current insurance period prior to 

reporting your Intended Farm 

Operation Report, the price will be 

the price you received; 

(3) The price that we agree best reflects 

the price you can expect to receive 

on your farm and for the market 

where your commodity will be sold, 

obtained from the most applicable 

following source for your farm

operation (sources under this 

paragraph do not have an order of 

priority):

(i) Prices reported by the 

Agricultural Marketing Service 

including Market News Reports, 

National Agricultural Statistics 

Service, Economic Research 

Service, or other government 

agency;

(ii) The FCIC published price, or 

other price election used to 

establish your guarantee for an 

FCIC reinsured policy, for the 

area where you normally sell the 

commodity adjusted for basis 

where applicable;

(iii) Current local, average, cash bid 

price for the commodity in the 

area where you normally sell the 

commodity;

(iv) The average price offered by at 

least two commercial buyers, 

one selected by you, and one 

selected by us; 

(v) Prices from a reliable 

disinterested third-party source 

such as a commodity broker, 

crush district, packer/processor,

or marketing cooperative, and 

that we approve; 

(vi) The average market price used 

to calculate NAP payments for

the area where you normally sell 

the commodity (including the 

direct market price if applicable);

(vii) Other price information provided 

or approved by RMA; or

(viii) The average price you 

received for the three most 

recent years if we agree no 

disinterested third-party source

specified above will accurately 

reflect the price of the commodity

based on the prices you have 

received in those three years in 

the area and market where the 

commodity will be sold (we may 

adjust the three-year average to 

reflect local market trends, in 

accordance with section 

18(e)(3)).

(c) The expected yield of the commodity is 

the yield that you can expect to produce 

on your farm operation under normal 

growing conditions, as demonstrated by 

your entire farm operation’s production 

history or other data sources (such as 

verifiable records from a processor).

(1) For commodities that are insured by 

another FCIC reinsured policy that 

provides individual yield or actual 

revenue history coverage in the 

county where the commodity will be 

produced, the yield used for the 

expected yield will be that policy’s

approved yield, unless:

(i) You provide documentation

based on your past production 

practices and any changes to the 

production practices during the 

insurance period that we agree 

demonstrates a higher or lower 

expected yield; or

(ii) You have produced the 

commodity in years prior to the 

first year of your whole-farm 

history period and we agree the 

years prior to your whole-farm 

history period do not reflect the 

yield you can expect to produce
Page 32 of 55

during the insurance period. In 

this case, you may use only 

those years after your wholefarm history begins when 

determining your expected yield.

(2) For commodities not insured under 

an individual yield coverage policy 

that have been produced on your 

farm operation during your whole 

farm history period:

(i) You must provide a completed 

Yield and Revenue Report for 

each commodity on or before the 

sales closing date for 

commodities reported on your 

Intended Farm Operation Report

or at the time you file your 

Revised Farm Operation Report 

for commodities added to your 

operation after the sales closing 

date;

(A) The Yield and Revenue 

Report for each commodity 

must contain a continuous 

record of production history 

of the commodity beginning 

with the most recent year the 

commodity was produced on 

your farm operation, to a 

maximum of ten years

preceding the insurance 

period with no break in 

continuity;

(B) If you have less than four 

continuous years of 

production history of the 

commodity on your farm 

operation, a replacement 

yield will be included for 

each missing year 

determined in accordance 

with section (c)(3) below; 

(C) The expected yield will be 

the average yield produced 

on your farm operation 

based on your production 

history and any replacement 

yields if applicable. 

(ii) In addition to section 7(a), you 

must maintain verifiable records

of yield and acreage for all years 

used to determine the expected 

yield; and

(iii) You must provide such verifiable 

records upon our request. If you 

are unable to provide verifiable 

records for any year you have 

certified you produced a 

commodity that would be used to 

establish your expected value, 

that commodity will be assigned 

a zero yield for that year on your 

Yield and Revenue Report when 

calculating the average yield.

(3) For all other commodities, the yield 

we determine best reflects the 

amount you can expect to produce 

during the insurance period obtained 

from the most applicable following 

sources for your farm operation:

(i) FCIC published transitional 

yields in the county or the 

nearest county with similar 

agronomic conditions to the 

county where the commodity will 

be produced;

(ii) Yields published or used by 

other USDA programs. For 

example, yields used to establish 

coverage under the NAP 

program administered by FSA;

or

(iii) Information provided by 

participants in the Cooperative 

Extension System, or a 

successor organization, that 

reflects the average yield the 

commodity can be expected to 

product in the county. The 

expected yield cannot be 

established based on university 

yield trial data or crop budget 

reports.

(4) The yield reported on your Farm 

Operation Report must reflect:

(i) The yield you can expect to 

produce on your entire farm 

operation (If differing yields are 

expected from different parts of 

your farm operation a separate 

line should be used for each or a 

weighted average used for the 

entire commodity);

(ii) Any alternate bearing 

tendencies of the insured 

commodity;

(iii) Any damage to the commodity 

that occurred prior to the 

beginning of the insurance 

period;

(iv) Any change in practice (e.g.,

adding drip irrigation, removing 
Page 33 of 55

irrigation, or beginning 

production of certified organic 

commodities) or production 

method used during the 

insurance period; and

(v) In the case of perennials, 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.

(5) Expected yields must be: 

(i) Reasonable, realistic, and 

consistent with available local 

agronomic information; and 

(ii) Supported by verifiable records.

In accordance with section 7(c), 

you are required to provide such 

verifiable records upon our 

request.

(d) The same commodity may have different 

expected values or expected yields

based on types or varieties, markets, 

planting seasons, or other reasons.

(e) Expected values must:

(1) Be reasonable, realistic, and 

consistent with available local market 

information;

(2) Be supported by verifiable records, 

or direct marketing sales records for 

commodities that are direct 

marketed;

(3) Take into account current local 

markets, cycles, and trends;

(4) Exclude post-production operation 

expenses but may include market 

readiness operation expenses;

(5) For commodities that were 

purchased for resale, exclude the 

cost of the commodity; and

(6) For vertically integrated operations, 

be consistent with values obtained 

from objective sources. Additionally, 

any post-production operation 

expenses removed from the values 

and market readiness operation 

expenses included in the values 

must be customary and reasonable 

and comparable to disinterested third 

party costs.

(f) The source for each expected value and 

expected yield must be noted on the 

Expected Value and Yield Source 

Document Certification Worksheet.

(g) The source used to determine the 

expected value under subparagraph 

(b)(3) must reflect the price of the 

commodity:

(1) 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 price reported by the 

Agricultural Marketing Service, we 

will not agree to using the 

Agricultural Marketing Service price 

to determine the expected value);

(2) In the marketing area where your

commodity will be sold (For example, 

the basis used to determine the price 

of the commodity (if any) will be your 

local basis);

(3) When the commodity will be 

harvested (For example, we will not 

agree to using a source that includes 

a price premium for storing the 

commodity after harvest); 

(4) At the time the expected value is 

determined in accordance with 

section 17(c)(4) (For example, if 

FCIC published a price for the 

commodity in November which is 

significantly different from the price 

you can reasonably expect to receive

at harvest at the time you submit your 

Intended Farm Operation report the 

following March, we will not agree to 

using the FCIC published price to 

determine the expected value); 

(5) For the amount of the commodity you 

will produce (For example, if the 

commodity is under a marketing 

contract, we will not agree to an 

expected value based on the 

contract price for expected 

production that exceeds the amount 

of production under contract); and

(6) To use the three-year average price,

as authorized under section 

18(b)(3)(viii), you must provide 

documentation at the time the 

expected value of the commodity is 

determined demonstrating a 

difference between the price you 

have received and third-party price 

sources available for the area and 

market where the commodity will be 

sold. The documentation must 

include a written explanation on how 
Page 34 of 55

you determined the price on your 

farm operation in each of the three 

years.

(h) At any time we determine the price or 

yield used to establish the expected 

revenue of a commodity does not reflect 

the price you could have expected to 

receive when the crop would be

harvested when the expected value was 

determined in accordance with section 

17(c)(4) or the yield you can expect to 

produce on your farm operation under 

normal growing conditions we will correct 

the price or yield used to establish the 

expected revenue:

(1) To a price consistent with the amount 

you can expect to receive for the 

amount of commodity you will 

harvest in the market where the 

commodity will be sold if the price:

(i) Includes post-production 

expenses we determine are not 

market readiness operations; or

(ii) Is significantly different from 

other prices received for the 

commodity in the local market 

where the commodity is sold and 

you cannot demonstrate the 

price difference is due to a 

covered cause of loss

(significant in this subparagraph 

means a difference of at least 10 

percent);

(2) To a yield consistent with the amount 

you can expect to produce on your 

farm operation if the yield you 

reported was significantly different 

from other yields in the county where 

the commodity is produced or your 

other yields for the crop and you 

cannot provide a valid agronomic 

basis for the difference in yields

(significant in this paragraph means 

a difference of at least 10 percent); or

(3) To 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.

(4) If we determine the error was 

inadvertent, we will modify the 

Revised Farm Operation Report to 

reflect the correct information, and 

your amount of insurance, premium, 

and any indemnity will be based on 

the modified report, otherwise the 

provisions in section 15(j) will apply

(simply stating the error or omission 

was inadvertent is not sufficient to 

prove the error or omission was 

inadvertent).

(i) If a price or yield cannot be determined 

for a commodity because no acceptable 

price source exists or an expected yield 

cannot be established, the expected 

value of the commodity will be zero and 

all revenue from that commodity will be 

considered revenue-to-count.

(j) The expected value of the commodity 

may be adjusted to reflect any customary 

charges, such as seed costs or drying 

expenses, not included in the price 

source determined to be correct in 

subsection (b).

19. Your Commodity Count and Qualifying 

Revenue Threshold

(a) Your commodity count is based on the 

number of commodities on your farm 

operation, or intended commodities you 

plan to have on your farm operation, with 

expected revenue equal to or greater 

than your qualifying revenue threshold 

and is used to determine: 

(1) The diversification discount you will 

receive to reflect farm diversification;

(2) Eligibility for WFRP if you raise 

potatoes or have commodities with 

other available revenue coverage;

and 

(3) Your subsidy amount.

(b) To calculate your qualifying revenue

threshold:

(1) Determine the number of 

commodities on your farm operation 

or intended commodities you plan to 

have on your farm operation. Each 

separate commodity code (excluding 

the combined direct marketing 

commodity code) on the Farm 

Operation Report is counted once to 

determine the number of 

commodities, regardless of the 

number of times the commodity code 

is used;

(2) Divide 1.0 by the result of paragraph 

(1) (round to three decimals);

(3) Multiply the result of paragraph (2) by 

0.333 (round to three decimals); and

(4) Multiply the result of paragraph (3) by 

the total expected revenue shown on 

your Farm Operation Report (round 
Page 35 of 55

to whole dollars) to determine your 

qualifying revenue threshold.

(c) To determine your commodity count:

(1) Sum the expected revenue for each 

individual commodity code;

(2) Determine the number of 

commodities or intended 

commodities in paragraph (1) that 

have expected revenue equal to or 

greater than your 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; 

(3) Sum the expected revenue amounts 

from the commodities of paragraph 

(2) and subtract the result from the 

Total Expected Revenue;

(4) Divide the result of paragraph (3) by 

your qualifying revenue threshold to 

determine the number of additional 

commodities to count (use whole 

numbers, do not round); and

(5) Add the number of commodities from 

paragraph (2) to the result of 

paragraph (4) to determine your

commodity count.

(6) Refer to section 17(d)(3) for 

instructions for commodity count 

when an intended qualifying 

commodity is not planted or is 

destroyed due to insured causes. 

20. (Reserved)

Loss Determinations

21. Causes of Loss

(a) This policy provides protection against 

loss of approved revenue due to 

unavoidable natural causes that occur 

during the insurance period such as:

(1) Adverse weather conditions;

(2) Fire;

(3) Insects, but not damage due to 

insufficient or improper application of 

pest control measures;

(4) Plant or animal disease, but not 

damage due to insufficient or 

improper application of disease 

control measures;

(5) Earthquake;

(6) Volcanic eruption;

(7) Failure of the irrigation water supply, 

if caused by an insured peril that 

occurs during the insurance period; 

(8) Wildlife, unless control measures 

have not been taken; or

(9) In accordance with subsections (d)

and (e), a decline in the market price.

(b) If you are a carryover insured, natural 

causes that occurred during the previous 

insurance period that cause a loss of 

revenue for the current insurance period 

will also be covered, except for declining 

prices that continue into the current 

insurance period or for changes due to a 

reduction of the irrigation water supply

that are known, or should be known, at 

the time the Farm Operation Report is 

filed.

(c) This policy will not cover losses due to 

any of the following causes:

(1) Negligence, mismanagement, or 

wrongdoing by you, any member of 

your family or household, your 

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 good 

farming practices for each insured 

commodity;

(4) Water that is contained by or within 

structures that are designed to 

contain a specific amount of water, 

such as dams, locks, or reservoir 

projects, etc., on any acreage when 

such water stays within the designed 

limits (For example, a dam is 

designed to contain water to an 

elevation of 1,200 feet but you plant 

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 1,200 feet. Under such 

circumstances, the resulting damage 

would not be caused by an insurable 

cause of loss. However, if you 

planted on acreage that was above 

1,200 feet elevation, any damage 

caused by water that exceeded that 
Page 36 of 55

elevation would be caused by 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 your established irrigation 

method unless the failure, 

breakdown or inability is due to an

unavoidable natural cause:

(i) You must make all reasonable 

efforts to restore the equipment 

or facilities to proper working 

order within a reasonable 

amount of time, unless we 

determine it is not practical to do 

so; and

(ii) Cost will not be considered when 

determining whether it is 

practical to restore the 

equipment or facilities;

(8) Theft, mysterious disappearance, or 

vandalism of an insured commodity;

(9) Inability to market the commodities 

due to quarantine, boycott, or refusal 

of any person to accept your 

commodities for any reason other 

than damage due to an insured 

cause of loss;

(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;

(14) Failure to obtain a price for any 

commodity that is reflective of the 

local market value; 

(15) Deterioration of commodities in 

storage that reduces the quality or 

value of the commodity, unless such 

deterioration is due to an insured 

cause of loss that occurred before 

the commodity was harvested; or

(16) Loss of expected revenue from the 

production of a commodity, or a 

quantity of a commodity, which has 

not been sold because there is no 

verifiable market for the commodity 

or the amount of the commodity 

produced exceeds the amount of 

production that could be expected to 

be received by the market under 

normal growing conditions (for 

example, the producer producers a 

variety of artichokes in an area 

where there is no market for that 

variety of artichokes or the only 

processor will accept no more than 

1000 bushels and producer 

produces 5000 bushels).

(d) Decline in local market price will be 

presumed to be from unavoidable natural 

causes unless FCIC is able to specifically 

identify a man-made cause that resulted 

in a measurable change in the price. In 

the case of such occurrence, the portion 

of the loss caused by the man-made 

event will not be covered.

(e) For carryover insureds, coverage is 

provided against loss of revenue due to 

causes of loss specified in this section 

that occur during the current or previous 

insurance period, and market-based

fluctuation that causes a loss in revenue 

for the current policy year in accordance 

with (d).

(f) With respect to abandonment in 

subsection (c)(13);

(1) You must comply with the notice 

requirements of section 22(c) for any 

commodity you cease to care for.

(2) Provided you have met the 

requirements of section 22(c), a

commodity that you have ceased to 

care for will not be considered 

abandoned if:

(i) An insured cause of loss 

prevents you from properly 

caring for, harvesting, or 

marketing the commodity or 

causes damage to the 

commodity to the extent that 

most producers of the 

commodity on acreage in the 

area with similar characteristics 

would not normally further care 

for or harvest the commodity; or

(ii) You decide not to harvest a 

commodity due to low market 

prices, in accordance with 

section 22(c)(2).

22. Your Duties in the Event of Damage or 

Loss

(a) You must provide us with a notice of loss 

within 72 hours of your initial discovery
Page 37 of 55

that any commodity insured under this 

policy has been damaged by a cause of 

loss that could result in a loss of 

production or reduction in value or that 

your allowable revenue for the policy

year could fall below the insured 

revenue:

(1) In the case of damage or loss of 

production, your notice must specify 

the damaged commodity and 

document the cause of loss.

(2) If you are not able to market any 

insured commodity (including refusal 

of a buyer to accept a commodity) 

you must provide a notice of loss 

stating that you are unable to market 

the commodity and document the 

reason that you are unable to market 

the commodity (e.g., quarantine, 

failure to meet the requirements of a 

processor contract, etc.).

(3) You are not required to report 

general market fluctuations that are 

not directly related to the condition or 

marketability of commodities on your 

farm operation.

(b) In case of potential loss of revenue under 

this policy, you must:

(1) Protect commodities from further

damage by providing sufficient care 

if the cost of the care will not exceed 

the value of the commodity

(supporting documentation must be 

provided as requested); and

(2) Cooperate with us in the settlement 

or investigation of your claim, and, as 

often as we reasonably require:

(i) Allow us to inspect damaged 

acreage or commodities;

(ii) Allow us to remove samples and 

determine the extent of damage;

(iii) Provide us with the verifiable 

records and documents we 

request and permit us to make 

copies.

(c) You must notify us and obtain our 

consent before you abandon, dispose of, 

or destroy any damaged or undamaged 

insured commodities, or sell a commodity 

for any reason other than its intended 

purpose or to someone other than a 

disinterested third party.

(1) If we do not inspect the insured 

commodity within 15 days after 

notification, you may abandon, 

dispose of, sell, or destroy the 

insured commodity without our 

consent.

(2) If we determine that expenses 

associated with the harvest or 

preparation of a commodity would be 

greater than the allowable revenue 

from the sale of the commodity, we 

will not include the potential revenue 

of the commodity when determining 

revenue-to-count if you do not 

harvest the crop.

(d) If you fail to comply with any of the notice 

requirements of this section:

(1) We will consider any loss on the 

portion of the commodity (damaged 

acres or other applicable unit of 

measure for the commodity) for 

which you failed to provide notice to 

be due solely to uninsured causes

with the expected revenue of the lost 

commodity included as revenue-tocount, unless we determine that we 

have the ability to accurately 

determine the amount and cause of 

loss; and 

(2) You will still be required to pay all 

premiums owed for your policy, 

including premium for any portion of 

the commodity we consider 

damaged due solely to uninsured 

causes.

23. Our Duties in the Event of Damage or Loss

(a) We will recognize and apply the claim 

adjustment and other procedures 

established or approved by FCIC.

(b) We will verify the information on your 

Whole-Farm History Report, Farm 

Operation Report, Inventory Report, 

Beginning and Ending Accounts 

Receivable Report, and any other 

supporting information used to complete 

the Claim for Indemnity Report.

(c) We will use your farm tax forms for the 

policy year to calculate your allowable 

revenue for the policy year on the 

Allowable Revenue Worksheet. Your 

allowable revenue will be determined 

from information on your farm tax forms 

for the policy year and any additional 

documentation we require to complete 

the Allowable Revenue Worksheet.

(d) If you have complied with all the policy 

provisions, we will pay your loss within 30 

days after:

(1) We reach agreement with you;
Page 38 of 55

(2) Completion of arbitration or appeal 

proceedings;

(3) Completion of any investigation by 

USDA, if applicable, of your current 

or past claim for indemnity if no 

evidence of wrongdoing has been 

found. (If any evidence of 

wrongdoing has been discovered, 

the amount of any indemnity, or 

replant overpayment as a result of 

such wrongdoing may be offset from 

any indemnity owed to you); or

(4) The entry of a final judgment by a 

court of competent jurisdiction.

(e) In the event we are unable to pay your 

loss within 30 days, we will give you 

notice of our intentions within the 30-day 

period.

(f) At our discretion, we may defer the 

adjustment of a loss up to 180 days from 

the end of the insurance period, as 

specified in section 25(a), when 

commodities produced during the 

insurance period are still in storage, 

have not been sold, and an accurate 

local market value is not available at the 

time the claim is filed. For commodities 

for which an accurate price cannot yet be 

determined or are still in controlled 

atmosphere storage after the 180 days

we may at our discretion defer 

adjustment of the claim until a portion of 

such production is packed and or 

processed to determine an accurate 

value.

24. Replant Payment

(a) To be eligible for a replant payment you 

must notify us of the damaged acreage 

prior to replanting and:

(1) The damaged commodity must be an 

annual plant;

(2) Damage to the commodity must be 

due to an insured cause of loss;

(3) We must agree it is practical to 

replant and give our consent to 

replant the commodity;

(4) The acreage replanted must be at 

least 20 acres or 20 percent of the 

insured planted acreage, applied 

separately to each commodity to be 

replanted;

(5) You must submit verifiable records 

showing your actual cost of 

replanting; and

(6) We may inspect the acreage prior to 

making the replant payment.

(b) The maximum amount of a replant 

payment will be the lesser of:

(1) 20 percent of the expected revenue 

times your coverage level for the 

commodity as reported on the Farm 

Operation Report per acre; or

(2) Your actual costs of replanting per 

acre;

(c) No replant payment will be made:

(1) If we are unable to determine your 

actual cost of replanting;

(2) On acreage on which one replanting 

payment has been made for the 

policy year; and

(3) For any commodity on your farm 

operation that is also insured by 

another FCIC reinsured policy if 

replant payments are also available 

under the other policy.

25. Claim for Indemnity

(a) You must submit a claim for indemnity 

declaring the amount of your loss not 

later than 60 days after the earlier of the 

date you filed your farm taxes with the 

IRS or the original date that your farm tax 

forms for the policy year must be 

provided to the IRS, as specified by the 

IRS, except as provided in section 23(f) 

or 25(a)(3).

(1) You must have completed and filed 

your farm taxes with the IRS before 

you may submit a claim for 

indemnity.

(2) You must file your farm tax forms on 

or before the first day of the seventh 

month after the end of the insurance 

period unless you have requested a 

Federal tax filing extension.

(3) If you have requested a Federal tax 

filing extension:

(i) You must submit a claim for 

indemnity declaring the amount 

of your loss not later than 60 

days after the earlier of the date 

you filed your farm taxes with the 

IRS or final extended tax due 

date;

(ii) Your request for extension must 

have been filed by the date 

required by the IRS;

(iii) You must provide to us a copy of 

your request for an extension or 

a copy of your tax return showing 

the date signed, or a proof of 

mailing showing the date the 

return was filed, or, if required by 
Page 39 of 55

us, you must request that the 

IRS send us verification of the 

date the return was filed; and

(iv) You must file your taxes on or 

before the final extended tax due 

date.

(4) The AIP may defer, at their 

discretion, the claim adjustment up to 

180 days from the end of the 

insurance period when commodities 

produced during the insurance 

period are still in storage.

(b) With respect to your completed Claim for 

Indemnity Report:

(1) You must provide:

(i) Your farm tax forms for the policy

year, any farm tax amendments 

applicable to the policy year, and 

any additional documentation we 

require to adjust the revenue to 

complete the Allowable Revenue

Worksheet for the policy year;

(ii) An Ending Inventory Report;

(iii) An Ending Accounts Receivable

Report;

(iv) Upon our request:

(A) Verifiable records that 

comprise a complete 

marketing record of each 

commodity on your farm 

operation;

(B) For commodities that 

produced less actual 

revenue than expected 

revenue, additional verifiable 

records sufficient to 

determine the loss of 

revenue was caused by 

perils covered under this 

policy; and

(C) The farm tax forms from your 

whole-farm history period 

used to establish your 

Whole-Farm History Report; 

and

(v) Information to complete the 

Farm Operation Report with final

production and revenue 

information;

(2) You must submit to examination 

under oath, if requested (failure to 

answer all questions fully and 

completely, and provide all 

information we determine necessary 

for the adjustment of the claim, will 

result in our determination that no 

indemnity is due); and

(3) If the amount of loss cannot be 

accurately determined from the 

information submitted, no indemnity 

will be paid but premium will still be 

owed.

(c) A claim cannot be settled:

(1) Unless all conditions of subsections

(a) and (b) have been met;

(2) Until the policy year's farm tax forms 

are filed with the IRS; and

(3) Until indemnities are received, as 

applicable, from all other FCIC 

reinsured policies that cover 

commodities insured under this 

policy.

(d) To calculate your revenue-to-count we 

will:

(1) Determine your allowable revenue 

from your farm tax forms for the 

policy year using the Allowable 

Revenue Worksheet;

(2) Adjust the revenue determined in 

paragraph (1) by making the 

following adjustments:

(i) Adding or subtracting, as 

applicable, to paragraph (1) the 

dollar amount of your ending 

accounts receivable minus the 

dollar amount of your beginning 

accounts receivable (The value 

will not include the cost of the 

commodity being valued if you 

purchased the commodity for 

resale. For example, if the 

beginning accounts receivable is 

$100 but the cost of the 

agricultural commodities that 

sold for $100 was $40, only $60 

will be included as beginning 

accounts receivable);

(ii) Adding or subtracting, as 

applicable, to paragraph (2)(i), 

for all commodities produced on 

your farm operation, the value of 

your ending inventory less the 

value of your beginning 

inventory:

(A) If the inventory is sold prior 

to the time your claim is 

finalized the value of both 

the beginning and ending 

inventories will be the actual 

price received; or 
Page 40 of 55

(B) If the inventory is not sold at 

the time we finalize your 

claim, the local market value

on the first day of the month 

in which the claim is finalized

will be used, based on the

same applicable expected 

value source used to 

determine the expected 

value, as specified in section 

18(b); or

(C) If the source used to 

determine the expected 

value is not available, the 

value will be based on the

source we agree is the most 

accurate in section 18(b); 

and

(iii) Adding or subtracting, as 

applicable, to paragraph (2)(ii), 

for all animals and other 

commodities you purchased for 

resale, the amount calculated by:

(A) Determining the expected 

revenue of your ending 

inventory on the last day of 

the insurance period;

(B) Subtracting the cost basis of 

the commodities in the 

ending inventory from the 

result of subclause (A);

(C) Determining the expected 

revenue of your beginning 

inventory on the first day of 

the insurance period;

(D) Subtracting the cost basis of 

the commodities in the 

beginning inventory from the 

result of subclause (C); and

(E) Subtracting the result of 

subclause (D) from the result 

of subclause (B).

(3) Add to the result of paragraph (2)(iii)

any allowable revenue that was lost 

because commodities were 

damaged or destroyed by causes of 

loss not covered under this policy;

(4) Add to paragraph (3) the expected 

revenue of any commodity you 

abandon;

(5) Add to the result of paragraph (4) any 

indemnity received from an FCIC 

reinsured policy purchased at an 

additional coverage level which 

covers commodities insured by this 

policy, not including replant 

payments, unless you have elected 

to exclude such policies from 

becoming primary insurance (For 

example, an indemnity from a 

multiple peril policy covering any 

commodity also covered under this 

policy would be included);

(6) Add to the result of paragraph (5) any 

expenses which reduced the price 

you received for a commodity that 

were not considered when 

determining the expected value of 

that commodity, unless we

determine that the reduction was due 

to an insurable cause of loss 

occurring prior to the harvest or end 

of insurance on the commodity (for 

example, if the price you receive for 

a commodity is reduced due to

expenses such as 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 

revenue-to-count);

(7) Add to the result of paragraph (6) any 

net gain from commodity hedging

and speculation, not to be less than 

zero; and

(8) Add to the result of paragraph (7) any 

payments for damage to insured 

commodities that exceed your 

deductible, as determined in 

accordance with section 30(d).

(f) The amount of indemnity will be 

calculated by:

(1) Multiplying your approved revenue 

by your coverage level; and

(2) Subtracting your revenue-to-count 

from the result of paragraph (2) to 

determine your indemnity.

For example:

Your approved revenue is $130,000 

and you elected a coverage level of 

75 percent.

Your revenue to count is $25,000.

Your indemnity is calculated as 

follows:

$130,000 x 0.75 coverage level = 

$97,500 (your insured revenue) 

$97,500 - $25,000 revenue to count 

= $72,500 which is the amount of 

indemnity paid.

(g) If the farm tax forms used to determine 

your indemnity are amended before or up 

to three years after the claim is settled, or 
Page 41 of 55

an IRS audit before or up to three years 

after the claim is settled indicates the 

amount of allowable revenue on such 

forms was incorrect:

(1) You must notify us and provide a 

copy of the amended farm tax forms 

or audit results; and

(2) We will adjust the amount of any 

indemnity based on the information 

contained in the amended form, or 

the information found to be correct by 

the audit, if the amended forms result 

in a five percent or greater change in 

your approved revenue or revenueto-count for the policy year.

26. (Reserved)

27. (Reserved)

Administrative Provisions

28. Assignment of Indemnity

(a) You may assign your right to an 

indemnity for the policy year only to 

creditors or other persons to whom you 

have a financial debt or other monetary 

obligation. You may be required to 

provide proof of the debt or other 

pecuniary obligation before we will 

accept the assignment of indemnity.

(b) All assignments must be on our form and 

must be provided to us. Each 

assignment form may contain more than 

one creditor or other person to whom you 

have a financial debt or other pecuniary 

obligation.

(c) Unless you have provided us with a 

properly executed assignment of 

indemnity, we will not make any payment 

to a lienholder or other person to whom 

you have a financial debt or other 

pecuniary obligation even if you may 

have a lien or other assignment recorded 

elsewhere. Under no circumstances will 

we be liable:

(1) To any lienholder or other person to 

whom you have a financial debt or 

other pecuniary obligation where you 

have failed to include such lienholder 

or person on a properly executed 

assignment of indemnity provided to 

us; or

(2) To pay to all lienholders or other 

persons to whom you have a 

financial debt or other pecuniary 

obligation any amount greater than 

the total amount of indemnity owed 

under the policy.

(d) If we have received the properly 

executed assignment of indemnity form:

(1) Only one payment will be issued 

jointly in the names of all assignees 

and you; and

(2) Any assignee will have the right to 

submit all notices and forms as 

required by the policy.

(e) If you have suffered a loss from an 

insurable cause and fail to file a claim for 

indemnity within the period specified in 

section 25 of this policy the assignee may 

submit the claim for indemnity not later 

than 30 days after the period for filing a 

claim has expired. We will honor the 

terms of the assignment only if we can 

accurately determine the amount of the 

claim. However, no action will lie against 

us for failure to do so.

29. Transfer of Coverage and Right to 

Indemnity

You will not be allowed to transfer your 

coverage to any other person, except in the 

case of death, disappearance, judicially 

declared incompetence, or dissolution of an 

insured person, transfer of coverage may 

occur in accordance with section 13.

30. Other Insurance and NAP

(a) Except as provided in section 9(d), you 

may obtain other FCIC reinsured policies

on your insurable interest of any 

commodity insured under this policy 

unless otherwise specified in the Special 

Provisions.

(b) Any other FCIC reinsured policy you 

purchase at an additional coverage level 

that covers commodities insured under 

this policy will become the primary 

insurance and any indemnity payment 

received from such policy(s) will be 

included as revenue-to-count under this 

policy, except:

(1) You may elect to exclude all FCIC 

reinsured policies from becoming 

primary insurance at the time you

complete your application;

(2) Such election will apply to all FCIC 

reinsured policies which cover 
Page 42 of 55

commodities insured under this 

policy;

(3) If you elect this exclusion:

(A) You will not receive an 

adjustment to your insured 

revenue for premium calculation 

purposes under section 14(c);

and 

(B) Indemnities from other FCIC 

reinsured policies will not be 

considered revenue to count, 

except as provided in section 

30(d).

(c) Nothing in this section prevents you from 

obtaining other insurance not authorized 

under the Act on commodities insured 

under this policy. 

(d) Any payments you receive from NAP, 

indemnities you receive from FCIC 

reinsured policies that you have

purchased at the CAT coverage level, or 

indemnities you receive from policies not 

authorized under the Act will not be 

considered revenue to count unless the 

total of all such payments and 

indemnities exceeds your deductible 

under this policy. If you have elected to 

exclude FCIC reinsured policies from 

becoming primary insurance under 

section 30(b)(1), any indemnity received 

from those policies will also be included

in this total. If the total amount of all such 

payments exceeds your deductible, the 

excess amount of such payments will be 

included as revenue to count, determined 

as follows:

(1) Sum all payments and indemnities 

received from NAP, policies 

purchased at the CAT coverage 

level, and insurance policies not 

authorized under the Act that you 

receive in compensation for damage 

to commodities insured under this 

policy;

(2) If you have elected under section 

30(b)(1) to exclude FCIC reinsured

policies from becoming primary 

insurance, add to the result of 

paragraph (1) the total amount of 

indemnities received from all such 

policies that provide coverage for 

any insured commodity; and

(3) Subtract your deductible from the 

result of paragraph (1) or paragraph 

(2) as applicable to determine the 

total dollar amount that will be 

considered revenue to count.

For example:

Your deductible is $32,500.

You received a $30,000 payment 

from NAP and a $5,000 indemnity 

from a policy not authorized under 

the Act.

The amount included as revenue to 

count will be calculated as follows:

$30,000 + $5,000 = $35,000 (the 

total amount of payments and 

indemnities received)

$35,000 - $32,500 = $2,500 revenue 

to count

31. Amounts Due Us

(a) Interest will accrue at the rate of 1.25 

percent simple interest per calendar 

month, on any unpaid amount due us or 

on any unpaid administrative fees owed 

to FCIC.

(1) For the purpose of premium amounts 

owed to us or administrative fees 

owed to FCIC, interest will start to 

accrue on the first day of the month 

following the premium billing date 

specified in the actuarial documents, 

provided a minimum of 30 days have 

passed from the premium billing 

date.

(2) We will collect any unpaid amounts 

owed to us and any interest owed 

thereon and any administrative fees 

and interest owed thereon to FCIC.

(b) For the purpose of any other amounts 

due us, such as repayment of 

indemnities found not to have been 

earned, interest will start to accrue on the 

date that notice is issued to you for the 

collection of the unearned amount.

(1) Amounts found due under this 

paragraph will not be charged 

interest if payment is made within 30 

days of issuance of the notice by us.

(2) The amount will be considered 

delinquent if not paid within 30 days 

of the date the notice is issued by us.

(c) All amounts paid will be applied first to 

expenses of collection (see subsection 

(d)), if any, second to the reduction of 

accrued interest, and then to the 

reduction of the principal balance.

(d) If we determine that it is necessary to 

contract with a collection agency or to 

employ an attorney to assist in collection, 
Page 43 of 55

you agree to pay all of the expenses of 

collection.

(e) The portion of the amounts owed by you 

for FCIC reinsured policies that are owed 

to FCIC may be collected in part through 

administrative offset from payments you 

receive from United States government 

agencies in accordance with 31 U.S.C. 

chapter 37. Such amounts include all 

administrative fees, and the share of the 

overpaid indemnities and premiums 

retained by FCIC plus any interest owed 

thereon.

32. Commodities as Payment

You must not abandon any commodity to us.

We will not accept any commodity as 

compensation for payments due us.

33. Mediation, Arbitration, Appeal, 

Reconsideration, and Administrative and 

Judicial Review

(a) If you and we fail to agree on any 

determination made by us, except those 

specified in this section 33(d) or (e), the 

disagreement may be resolved through 

mediation in accordance with section 

33(g). If resolution cannot be reached 

through mediation, or you and we do not 

agree to mediation, the disagreement 

must be resolved through arbitration in 

accordance with the rules of the 

American Arbitration Association (AAA), 

except as provided in sections 33(c) and 

(f), and unless rules are established by 

FCIC for this purpose. Any mediator or 

arbitrator with a familial, financial, or 

other business relationship to you or us, 

or our agent or loss adjuster, is 

disqualified from hearing the dispute.

(1) All disputes involving determinations 

made by us, except those specified 

in section 33(d) or (e), are subject to 

mediation or arbitration. However, if 

the dispute in any way involves a 

policy or procedure interpretation, 

regarding whether a specific policy 

provision or procedure is applicable 

to the situation, how it is applicable, 

or the meaning of any policy 

provision or procedure, either you or 

we must obtain an interpretation from 

FCIC in accordance with 7 CFR part 

400, subpart X or such other 

procedures as established by FCIC.

(i) Any interpretation by FCIC will 

be binding in any mediation,

arbitration.

(ii) Failure to obtain, or comply with,

any required interpretation from 

FCIC will result in the nullification 

of any agreement or award.

(iii) An interpretation by FCIC of a 

policy provision is considered a 

determination that is a matter of 

general applicability.

(iv) An interpretation by FCIC of a 

procedure may be appealed to 

the National Appeals Division in 

accordance with 7 CFR part 11.

(2) Unless the dispute is resolved 

through mediation, the arbitrator 

must provide to you and us a written 

statement describing the issues in 

dispute, the factual findings, the 

determinations and the amount and 

basis for any award and breakdown 

by claim for any award.

(i) The statement must also include 

any amounts awarded for 

interest.

(ii) Failure of the arbitrator to 

provide such written statement 

will result in the nullification of all 

determinations of the arbitrator.

(iii) All agreements reached through 

settlement, including those 

resulting from mediation, must 

be in writing and contain at a 

minimum a statement of the 

issues in dispute and the amount 

of the settlement.

(b) Regardless of whether mediation is 

elected:

(1) The initiation of arbitration 

proceedings must occur within one 

year of the date we denied your claim 

or rendered the determination with 

which you disagree, whichever is 

later;

(2) If you fail to initiate arbitration in 

accordance with section 33(b)(1) and 

complete the process, you will not be 

able to resolve the dispute through 

judicial review;

(3) If arbitration has been initiated in 

accordance with section 33(b)(1) and 

completed, and judicial review is 

sought, suit must be filed not later 

than one year after the date the 

arbitration decision was rendered; 

and

(4) In any suit, if the dispute in any way 

involves a policy or procedure 
Page 44 of 55

interpretation, regarding whether a 

specific policy provision or procedure 

is applicable to the situation, how it is 

applicable, or the meaning of any 

policy provision or procedure, an 

interpretation must be obtained from 

FCIC in accordance with 7 CFR part 

400, subpart X or such other 

procedures as established by FCIC. 

Such interpretation will be binding.

(c) Any decision rendered in arbitration is 

binding on you and us unless judicial 

review is sought in accordance with 

section 33(b)(3). Notwithstanding any 

provision in the rules of the AAA, you and 

we have the right to judicial review of any 

decision rendered in arbitration.

(d) With respect to good farming practices:

(1) We will make decisions regarding 

what constitutes a good farming 

practice and determinations of 

assigned revenue for uninsured 

causes for your failure to use good 

farming practices.

(i) If you disagree with our decision 

of what constitutes a good 

farming practice, you must 

request a determination from 

FCIC of what constitutes a good 

farming practice in accordance 

with paragraph (2).

(ii) If you disagree with our 

determination of the amount of 

assigned revenue, you must use 

the arbitration or mediation 

process contained in this 

section.

(iii) You may not sue us for our 

decisions regarding whether 

good farming practices were 

used by you.

(2) FCIC will make determinations 

regarding what constitutes a good 

farming practice. If you do not agree 

with any determination made by 

FCIC:

(i) You may request 

reconsideration by FCIC of this 

determination in accordance 

with the reconsideration process 

established for this purpose and 

published at 7 CFR part 400, 

subpart J; or

(ii) You may file suit against FCIC.

(A) You are not required to 

request reconsideration from 

FCIC before filing suit.

(B) Any suit must be brought 

against FCIC in the United 

States district court for the 

district in which the insured 

acreage is located.

(C) Suit must be filed against 

FCIC not later than one year 

after the date:

(1) Of the determination; or

(2) Reconsideration is 

completed if 

reconsideration was 

requested under section 

33(d)(2)(i).

(e) Except as provided in section 33(d) or (i), 

if you disagree with any other 

determination made by FCIC or any 

claim where FCIC is directly involved in 

the claims process or directs us in the 

resolution of the claim:

(1) You may obtain an administrative 

review in accordance with 7 CFR 

part 400, subpart J or appeal in 

accordance with 7 CFR part 11.

(i) If you elect to bring suit after 

completion of any appeal, such 

suit must be filed against FCIC in 

the United States district court 

for the district in which the 

insured acreage is located not 

later than one year after the date 

of the decision rendered in such 

appeal.

(ii) Under no circumstances can you 

recover any attorney fees or 

other expenses, or any punitive, 

compensatory or any other 

damages from FCIC.

(2) You cannot bring an arbitration, 

mediation, or litigation action against 

us.

(f) In any mediation, arbitration, appeal, 

administrative review, reconsideration or 

judicial process, the terms of this policy, 

the Act, and the regulations published at 

7 CFR chapter IV, including the 

provisions of 7 CFR part 400, subpart P, 

are binding. Conflicts between this policy 

and any state or local laws will be 

resolved in accordance with section 37. 

If there are conflicts between any rules of 

the AAA and the provisions of your 
Page 45 of 55

policy, the provisions of your policy will 

control.

(g) To resolve any dispute through 

mediation, you and we must both:

(1) Agree to mediate the dispute;

(2) Agree on a mediator (Once 

mediation is agreed to, you cannot 

avoid mediation by failing to agree to 

a mediator); and

(3) Be present or have a designated 

representative who has authority to 

settle the case present at the 

mediation.

(h) Except as provided in section 33(i), no 

award or settlement in mediation, 

arbitration, appeal, administrative review 

or reconsideration process or judicial 

review can exceed the amount of insured 

revenue established or which should 

have been established under the policy, 

except for interest awarded in 

accordance with section 34.

(i) Any determination made by FCIC that is 

a matter of general applicability is not 

subject to administrative review under 7 

CFR part 400, subpart J or appeal under 

7 CFR part 11. If you want to seek 

judicial review of any FCIC determination 

that is a matter of general applicability, 

you must request a determination of nonappealability from the Director of the 

National Appeals Division in accordance 

with 7 CFR 11.6 before seeking judicial 

review.

(j) In a judicial review only, you may recover 

attorney’s fees or other expenses, or any 

punitive, compensatory or any other 

damages from us only if you obtain a 

determination from FCIC that we, our 

agent or loss adjuster failed to comply 

with the terms of this policy or procedures 

issued by FCIC and such failure resulted 

in you receiving a payment in an amount 

that is less than the amount to which you 

were entitled. Requests for such a 

determination should be addressed to 

the following: USDA/RMA/Deputy 

Administrator of Compliance/Stop 0806, 

1400 Independence Avenue, S.W., 

Washington DC 20250-0806.

34. Interest Limitations

(a) We will pay simple interest computed on 

the net indemnity ultimately found to be 

due by us or by a final judgment of a court 

of competent jurisdiction, from and 

including the 61st day after the date you 

sign, date, and submit to us the properly 

completed claim on our form.

(b) Interest will be paid only if the reason for 

our failure to timely pay is NOT due to 

your failure to provide information or 

other material necessary for the 

computation or payment of the indemnity.

(c) The interest rate will be that established 

by the Secretary of the Treasury under 

section 12 of the Contract Disputes Act of 

1978 (41 U.S.C. 611) and published in 

the Federal Register semiannually on or 

about January 1 and July 1 of each year 

and may vary with each publication.

35. Descriptive Headings

The descriptive headings of the various 

policy provisions are formulated for 

convenience only and are not intended to 

affect the construction or meaning of any of 

the policy provisions.

36. Controlled Substances

(a) Although your violation of a number of 

federal statutes, including the Act, may 

cause cancellation, termination, or 

voidance of your insurance contract, you 

should be specifically aware that your 

policy will be void if you are determined 

to be ineligible to receive benefits due to 

a conviction of the controlled substance 

provisions of the Food Security Act of 

1985 (Pub. L. 99-198).

(b) Your policy will, as determined by the 

court, be void if you are convicted under 

Federal or State law of possession of or 

trafficking in a controlled substance.

(c) Controlled substances are not insurable 

under WFRP and your farm operation will 

not be eligible for WFRP if you produce 

any controlled substance, regardless of 

the legal status of the substance in the 

state where the commodity will be 

produced.

37. Applicability of State and Local Statutes

If the provisions of this policy conflict with 

statutes of the State or locality in which this 

policy is issued, the policy provisions will 

prevail. State and local laws and regulations 

in conflict with federal statutes, this policy, 

and the applicable regulations do not apply to 

this policy.

38. Concealment, Misrepresentation or Fraud

(a) If you have falsely or fraudulently 

concealed the fact that you are ineligible 

to receive benefits under the Act or if you 

or anyone assisting you has intentionally 
Page 46 of 55

concealed or misrepresented any 

material fact relating to this policy:

(1) This policy will be void; and

(2) You may be subject to remedial 

sanctions in accordance with 7 CFR 

part 400, subpart R.

(b) Voidance will be effective on the first day 

of the insurance period for the policy year 

in which the act occurred and will not 

affect the policy for subsequent policy

years unless a violation of this section 

also occurred in such policy years.

(c) If you willfully and intentionally provide 

false or inaccurate information to us or 

FCIC or you fail to comply with a 

requirement of FCIC, in accordance with 

7 CFR part 400, subpart R, FCIC may 

impose on you:

(1) A civil fine for each violation in an 

amount not to exceed the greater of:

(i) The amount of the monetary gain 

obtained as a result of the false 

or inaccurate information 

provided or the noncompliance 

with a requirement of this title; or

(ii) $10,000; and

(2) A disqualification for a period of up to 

5 years from receiving any monetary 

or nonmonetary benefit provided 

under each of the following:

(i) Any FCIC reinsured policy;

(ii) The Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 

7333 et seq.);

(iii) The Agricultural Act of 1949 (7 

U.S.C. 1421 et seq.);

(iv) The Commodity Credit 

Corporation Charter Act (15 

U.S.C. 714 et seq.);

(v) The Agricultural Adjustment Act 

of 1938 (7 U.S.C. 1281 et seq.);

(vi) Title XII of the Food Security Act 

of 1985 (16 U.S.C. 3801 et seq.);

(vii) The Consolidated Farm and 

Rural Development Act (7 U.S.C. 

1921 et seq.); and

(viii) Any federal law that provides 

assistance to a producer of a 

commodity affected by a crop 

loss or a decline in the prices of 

commodities.

39. Multiple Benefits

(a) If you are eligible to receive an indemnity 

under this policy and are also eligible to 

receive benefits for the same loss under 

any other USDA program, you may 

receive benefits under both programs in 

accordance with subsection (b), unless 

specifically limited by the crop insurance 

contract or by law.

(b) Any amount received for the same loss 

from any USDA program, in addition to 

the crop insurance payment, will not 

exceed the difference between the crop 

insurance payment and the actual 

amount of the loss, unless otherwise 

provided by law.

(1) The amount of the actual loss is the 

difference between the total 

expected revenue summed for all 

commodities on the farm operation, 

without regard to coverage level, 

before the loss and the total revenueto-count for all commodities on the 

farm operation after the loss.

(2) If the other program benefits are only 

available for a single crop or several 

crops but are less than the entire 

farm operation, you may be required 

to provide verifiable records 

establishing the total expected 

revenue and the revenue for each 

commodity for which you are eligible 

for another benefit.

(c) FSA or another USDA agency, as 

applicable, will determine and pay the 

additional amount due you for any 

applicable USDA program, after first 

considering the amount of any crop 

insurance indemnity.

40. Death, Disappearance, Judicial 

Incompetence, and Dissolution

(a) In cases where there has been a death, 

disappearance, judicially declared 

incompetence, or dissolution of any 

insured person:

(1) If any married insured dies, 

disappears, or is judicially declared 

incompetent, the policy will 

automatically convert to the name of 

the spouse if:

(i) The spouse was included on the 

policy as having a substantial 

beneficial interest in the insured; 

and

(ii) The spouse has a share of the 

farm operation.

(2) The provisions in section 40(a)(3) will 

be applicable only if:

(i) Any partner, member, 

shareholder, etc., of an insured 

dies, disappears, or is judicially 
Page 47 of 55

declared incompetent, and such 

event automatically dissolves 

the tax entity; or

(ii) An individual whose estate is left 

to a beneficiary other than a 

spouse or left to the spouse and 

the criteria in section 40(a)(1) are 

not met, dies, disappears, or is 

judicially declared incompetent.

(3) If section 40(a)(2) applies and the 

death, disappearance, or judicially 

declared incompetence occurred:

(i) More than 30 days before the 

cancellation date, the policy is 

automatically canceled as of the 

cancellation date and a new 

application must be submitted; or

(ii) Thirty days or less before the 

cancellation date, or on after the 

cancellation date, the policy will 

continue in effect through the 

policy year immediately following 

the cancellation date and be 

automatically canceled as of the 

cancellation date immediately 

following the end of the 

insurance period for the policy

year, unless canceled by the 

cancellation date prior to the 

start of the insurance period:

(A) A new application for 

insurance must be submitted 

on or before the sales 

closing date for coverage for 

a subsequent policy year; 

and 

(B) Any indemnity or replant 

payment will be paid to the 

person or persons 

determined to be beneficially 

entitled to the payment 

provided such person or 

persons comply with all 

policy provisions and timely 

pays the premium.

(b) If any insured tax entity is dissolved for 

reasons other than death, 

disappearance, or judicially declared 

incompetence:

(1) Before the cancellation date, the 

policy is automatically canceled as of 

the cancellation date and a new 

application must be submitted; or

(2) On or after the cancellation date, the 

policy will continue in effect through 

the policy year immediately following 

the cancellation date and be 

automatically canceled as of the 

cancellation date immediately 

following the end of the insurance 

period for the policy year, unless 

canceled by the cancellation date 

prior to the start of the insurance 

period.

(i) A new application for insurance 

must be submitted on or before

the sales closing date for 

coverage for the subsequent 

policy year; and

(ii) Any indemnity or replant 

payment will be paid to the 

person or persons determined to 

be beneficially entitled to the 

payment provided such person 

or persons comply with all policy 

provisions and timely pay the 

premium.

(3) With respect to termination and 

ineligibility, a remaining member of 

the insured person or the beneficiary 

is required to report to us the death, 

disappearance, judicial 

incompetence, or other event that 

causes dissolution of the tax entity 

not later than the next cancellation 

date, except if regaining eligibility

applies, notice must be provided by 

the cancellation date for the next 

policy year.

41. Correction of Errors

(a) In addition to any other corrections 

allowed in your policy and subject to 

section 41(b), we may correct:

(1) Within 60 days after the sales closing 

date, any incorrect information on 

your application or provided by the 

sales closing date, including 

identification numbers for you and 

any person with a substantial 

beneficial interest in you, to ensure 

that the eligibility information is 

correct and consistent with 

information reported by you to any 

USDA agency;

(2) Within 30 days after the Revised 

Farm Operation Report, information 

reported to reconcile errors in the 

information with correct information 

that has been determined by any 

USDA agency;

(3) Within 30 days of any subsequent 

correction of data by FSA, erroneous 
Page 48 of 55

information corrected as a result of 

verification of information; and

(4) At any time, any incorrect information 

if the incorrect information was 

caused by electronic transmission 

errors by us or errors made by any 

agency within USDA in transmitting 

the information provided by you for 

purposes of other USDA programs.

(b) Corrections may be made but will not 

take effect for the current policy year if 

the correction would allow you to:

(1) Avoid ineligibility requirements for 

insurance or obtain a 

disproportionate benefit under the 

crop insurance program or any 

related program administered by the 

Secretary;

(2) Obtain, enhance, or increase an 

insurance guarantee or indemnity if a 

cause of loss exists or has occurred 

before any correction has been 

made, or avoid premium owed if no 

loss is likely to occur; or

(3) Avoid an obligation or requirement 

under any Federal or State law.

42. Voided Policies

(a) If voidance of your policy occurs for any 

reason you must repay any indemnity or 

replant payment that may have been paid 

for all applicable policy years;

(b) Even though the policy is void, you will 

still be required to pay an amount equal 

to 20 percent of the premium that you 

would otherwise be required to pay to 

offset costs incurred by us in the service 

of this policy; and

(c) If you previously paid premium or 

administrative fees, any amount in 

excess of the amount required in (b) will 

be returned to you.

43. (Reserved)

Special Circumstances

Organic Commodity Requirements

44. Organic Commodities

(a) Organic prices can be used as expected 

values for certified organic acreage, and 

for certified organic animals or animal 

products.

(1) You may not use organic prices for 

commodities that are not certified 

organic.

(2) All requirements as published in 7 

CFR 205, National Organic Program, 

must be met in order to be 

considered a certified organic 

operation. However, if your farm is 

not required to have an organic 

certification because your gross 

agricultural income from organic 

sales is $5,000 or less and you follow 

all organic standards including 

having an organic production or 

handling system plan, you may also 

use organic prices and your farm will 

be considered to be certified under 

this policy.

(b) By the Revised Farm Operation 

Reporting date, you must have, for 

certified organic acreage or organic 

animals or animal products, a valid 

certification in effect as shown on the 

National Organic Program website or you 

must have a written certification from a 

certifying agent (a certificate issued to an

operator/tenant may be used to qualify

the same acreage for a landlord or other 

similar arrangement, except as provided 

in section 44(b)(3)). A certificate issued 

from the National Organic Program’s 

Organic Integrity Database (or successor 

certificate reporting tool) is acceptable. 

The following items are required:

(1) You must have a current certification 

if a claim is made. If your farm was 

certified organic previously but you 

have not received an updated 

organic certification, the previous 

certification may not be used at claim 

time. If you do not have the 

appropriate certificate at claim time, 

your insured revenue will be 

recalculated without the organic 

expected values; and

(2) We will document on the Farm 

Operation Report which acres and 

commodities are certified organic. 

You must be able to provide your 

organic system plan or information 

identifying the organic fields, if 

required by us.

(3) If you do not have a valid certification 

by the Revised Farm Operation 

Reporting date, you must provide 
Page 49 of 55

documentation that you have 

requested, in writing, your 

certification or organic system plan 

by the Revised Farm Operation 

Reporting date.

(i) Your certificate or organic 

system plan must be in effect 

prior to the end of the insurance 

period.

(ii) Your acreage will remain insured 

under the practice you reported 

on the Revised Farm Operation 

Reporting date unless you have 

a loss and do not have a 

certificate or organic system 

plan. If you have a loss and do 

not have a certificate or organic 

system plan in place at the time 

the claim is finalized, then the 

expected value of the commodity 

will be the expected value of the 

practice for which the commodity

qualifies and any expanded 

operation factor attributed to 

having a valid certification will be 

revised accordingly.

(c) If any acreage or animals or animal 

products qualifies as certified organic, by 

the Revised Farm Operation Reporting 

date, and the certification is subsequently 

surrendered by the farm, suspended, 

revoked or denied by the certifying agent,

during the insurance period, that acreage 

or animals or animal products will remain 

insured but the expected value for the 

acreage or animals or animal products 

will be recalculated to non-organic 

expected values because the failure to 

comply with organic standards is not an 

insured cause of loss.

(d) Contamination by application or drift of 

prohibited substances (non-synthetic or 

synthetic) onto land on which crops are 

grown using organic farming practices 

will not be an insured peril on any 

certified organic acreage.

Post-Production Operations and Added Value

45. Post-Production Operations and Added Value

(a) Revenue from post-production 

operations including those that add value 

to the commodity must be adjusted out of 

farm revenue to determine the allowable 

revenue.

(b) Market readiness operations are not 

required to be removed from allowable 

revenue.

(c) Post-production operation adjustments

to remove the value and costs of inputs 

and activities that are post- production 

costs and value will occur:

(1) For the allowable revenue, on the 

Allowable Revenue Worksheet for 

each year for the Whole-Farm 

History Report;

(2) To the expected values used in the 

Farm Operation Reports (with 

adjustments noted on the report);

(3) For the allowable revenue on the 

Allowable Revenue Worksheet for 

the policy year to determine any 

indemnity due;

Animals and Animal Products Requirements

46. Animals and Animal Products

(a) Eligibility for insurance for operations 

with animals and animal products is 

limited in accordance with section 3.

(b) Inventory information for animals and 

animal products must be provided on the 

Market Animal and Nursery Inventory 

Report and this report will be provided in 

addition to the Inventory Report.

(c) A Market Animal and Nursery Inventory

Report must include a complete 

inventory of both breeding and market 

animals.

(1) The inventory of breeding animals 

will be kept separate from inventory 

of the market animals.

(2) Breeding animals you do not intend 

to sell, including culls, are not 

included in insured revenue and the 

breeding animal inventory will be 

used to support the number of 

market animals, and to document 

culled breeding animals so they can 
Page 50 of 55

be removed from the approved 

revenue.

(d) The insured revenue will be based on the 

revenue produced during the insurance 

period. Animals and animal products 

carried over from the previous year will 

be valued at the beginning of the 

insurance period and only the value 

gained during the insurance period will 

be part of the insured revenue.

(e) The animal and animal product beginning 

inventory will be used to value the 

animals and animal products at the 

beginning of the insurance period. “Total 

value” from the beginning inventory for 

the commodity must be subtracted from 

the expected revenue on the Farm 

Operation Report for the policy year.

(f) Animal and animal product inventory 

adjustments to allowable revenue at the 

end of the insurance period measure 

revenue from production for the 

insurance period and are calculated by:

(1) Subtracting the beginning inventory 

from the ending inventory; and

(2) Adding the result, negative or 

positive, that reflects increases or 

decreases in inventory values, to the 

allowable revenue for the policy year.

(g) The cost of animals for resale purchased 

during the insurance period must be 

removed from the expected revenue on 

the Farm Operation Report and the 

ending inventory value on the Market 

Animal and Nursery Inventory Report.

(h) If a commodity on the commodity list in 

the actuarial documents has multiple 

expected values for the farm such as 

cattle having different prices for steers 

and heifers, separate lines must be 

entered on the Farm Operation Report 

for each commodity.

(i) The expected value of any animal will not 

exceed the local market price of the 

same breed and type being valued.

(1) For registered livestock, local market 

value will be determined by the value 

of other registered livestock of the 

same breed and type (for example:

weaned heifers, bred heifers, or 

mature cows) from other livestock 

producers in the area.

(2) If production methods result in 

variances in prices, the production 

method, such as grain-fed beef or 

pasture raised poultry, may also be 

considered when determining the 

local market price, if applicable.

(j) If your application was accepted and 

WFRP coverage began and you later 

make revisions to the amount of animals 

and animal products on your farm that 

exceed $2 million, your revenue from 

animals and animal products will be 

capped as provided in section 17(c)(2)(ii)

with all allowable revenue included as 

revenue to count under the WFRP policy. 

Aquaculture commodities are excluded 

when calculating the revenue cap for 

animals and animal products.

Nursery Requirements

47. Nursery and Greenhouse Commodities

(a) Eligibility for insurance for operations 

with nursery and greenhouse

commodities is limited in accordance with

section 3.

(b) Inventory information for nursery and 

greenhouse commodities must be 

provided on the Market Animal and 

Nursery Inventory Report and this report 

will be provided in addition to the 

Inventory Report.

(c) The inventory must show the plants on 

hand at the beginning of the insurance 

period, corresponding expected values, 

the cost or basis of the plants, and the 

total value of each plant or category of 

plant (such as pot sizes).

(d) The insured revenue will be based on the 

revenue produced during the insurance 

period. Plants carried over from the 

previous year will be valued at the 

beginning of the insurance period and 

only the value gained during the 

insurance period will be part of the 

insured revenue.

(e) The nursery and greenhouse beginning 

inventory will be used to value the 

nursery and greenhouse commodities at 

the beginning of the insurance period. 

“Total value” from the beginning 

inventory for the commodity must be 

subtracted from the expected revenue on 
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the Farm Operation Report for the policy

year.

(f) Nursery and greenhouse inventory 

adjustments to allowable revenue at the 

end of the insurance period measure 

revenue from production for the policy

year and are calculated by:

(1) Subtracting the beginning inventory 

from the ending inventory; and

(2) Adding the result, negative or 

positive, that reflects increases or 

decreases in inventory values, to the 

allowable revenue for the policy year.

(g) The cost of plants for resale purchased 

during the insurance period must be 

removed from the expected revenue on 

the Farm Operation Report and the 

ending inventory value on the Market 

Animal and Nursery Inventory Report.

(h) If a commodity on the commodity list in 

the actuarial documents has multiple 

expected values for the farm such as 

having different prices for different types 

of plants, separate lines must be entered 

on the Farm Operation Report for each 

commodity.

(i) If your application was accepted and 

WFRP coverage began and you later 

make revisions to the amount of nursery 

and greenhouse commodities on your 

farm that exceed $2 million, your revenue 

from nursery and greenhouse will be 

capped as provided in section 17(c)(2)(iii)

with all allowable revenue included as 

revenue to count under the WFRP policy.

Aquaculture commodities are excluded 

when calculating the revenue cap for 

nursery and greenhouse products.

(j) Trees, shrubs, bushes, and other plants

must be grouped according to the genus 

and container size.

Marketing Contract Requirements

48. Marketing Contracts

(a) If you produce a commodity under a 

marketing contract, the expected value 

for the portion of the expected production 

under contract will be the price contained 

in the marketing contract (see section 

18(a)(1).

(b) To be considered a marketing contract

under WFRP, there must be a written 

agreement between you and a buyer, 

containing at a minimum:

(1) Your commitment to produce the 

commodity on your farm operation 

during the insurance period;

(2) Your commitment to deliver the 

production to the buyer;

(3) The buyer’s commitment to purchase 

all of the production stated in the 

contract; and

(4) 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.

(c) 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.

(d) Contracts that do not meet the 

requirements of section (b) are not 

considered marketing contracts for 

WFRP. 

Expanded Operations Requirements

49. Expanded Operations

(a) If you can show us your farm operation 

has physically expanded during the 

insurance period or lag year by adding 

production capacity to your farm 

operation (e.g., by adding land or an 

addition of a greenhouse), increasing use 

of existing production capacity (e.g., by 

double-cropping existing land or 

beginning production on high density 

orchards), or making physical alterations 

to existing production capacity (e.g., by 

adding irrigation to existing land or 

beginning production on certified organic 

acreage) we may at our discretion 

approve your farm operation as an 

expanding operation. (We will not 

consider crop rotation or planting a 

higher value commodity without changes 

to your existing production capacity to be 
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physical expansion. For example; if you 

planted more of your existing land to a 

high value commodity during the 

insurance period than in previous years

but did not otherwise change the 

production capacity of your farm 

operation, we will not approve your farm 

operation as an expanding operation.) If 

so:

(1) You must provide verifiable records 

that we agree are sufficient to 

determine the amount of revenue an

expansion can be expected to 

generate during the insurance 

period;

(2) We will determine the amount of 

revenue from the expansion 

approved for the purpose of 

determining your expanding 

operation factor; 

(3) If more than one expansion is 

applicable to your farm operation, we 

will determine the amount of revenue 

approved for each expansion 

separately; and

(4) If you have also made a physical 

reduction in your production 

capacity, we will only consider the 

net increase in production capacity 

from the highest amount of 

production capacity of those years in 

your whole-farm history period when 

determining your expanding 

operation factor. For example, if you 

have purchased 200 acres this year 

and you sold 100 acres the previous 

year, your expanding operation 

factor will be based on a 100 acre 

increase in production capacity.

(5) If your farm operation is expanding 

due to adding organic practice 

production capacity or beginning 

organic production on existing 

production capacity converted to an

organic practice you may elect to 

submit only the organic practice 

expansion for consideration to be 

approved as an expanding 

operation. If you do, you may qualify 

for calculating your expanding 

operation factor using the organic 

expansion calculation in section 

49(j).

(b) If your farm operation is expanding 

during the current insurance period you 

must provide all required records no later 

than the date you are required to submit 

your Revised Farm Operation Report.

(c) If an expansion of your farm operation

occurred in your lag year:

(1) You must provide all required 

records by the later of the sales 

closing date or the first day of your 

insurance period; and

(2) We will determine the amount of 

revenue from the expansion based 

on information applicable to the

insurance period. For example, the 

expected value for each commodity 

will be based on the price in the 

current year, regardless of the price 

of the commodity at the time the 

expansion occurred.

(d) If we have approved your farm operation 

as an expanding operation and the 

expansion is not due solely to certified 

organic sources, your expanding 

operation factor will be calculated by:

(1) Adding the amount of revenue from 

the physical expansion of your farm 

operation during the insurance 

period, as determined by us, to your 

simple average allowable revenue; 

(2) Adding to paragraph (1) the amount 

of revenue from any expansions that 

occurred in your lag year, as 

determined by us; and

(3) Dividing the result of paragraph (2) 

by your simple average allowable 

revenue to determine your 

expanding operation factor, not to 

exceed 1.35.

(e) Your expanded operation adjusted 

revenue will be your simple average 

allowable revenue multiplied by your 

expanding operation factor.

(f) For perennial crops, beginning 

production on an orchard (or other unit of 

land) will not be considered a physical 

expansion if any revenue from production 

on that land was generated during your 

whole-farm history period. The land may 

be eligible if no revenue was generated 

during the whole-farm history period, 

even if the land has been part of your 

farm operation prior to the whole-farm 

history period.

(g) For livestock, an increase in the number 

of livestock expected to produce revenue 

in the insurance period with no other 

changes in facilities or production 
Page 53 of 55

capacity will not be considered a physical 

expansion.

(h) At any time we determine the information 

used to establish your expanding 

operation factor does not reflect the 

revenue you could have expected to 

receive when the crop would be 

harvested when the expanding operation 

factor was determined we will revise the 

expanding operation factor to the amount 

determined to be correct.

(i) No expanding operation factor can be 

approved until you have provided 

documentation verifying that you actually 

undertook the proposed expansion 

indicated on your Intended Farm 

Operation Report in time for it to provide 

the stated revenue to the farm operation

during the insurance period. 

(j) If we have approved your farm operation 

as an expanding operation and the 

expansion we approved is due solely to 

adding production capacity for certified 

organic commodities or beginning 

organic production on existing production 

capacity converted to certified organic

practice, your expanding operation factor 

will be calculated by:

(1) Multiplying your simple average 

allowable revenue by 0.35;

(2) Determining the greater of the result 

of (1) or $500,000; 

(3) Adding your simple average 

allowable revenue to the result of (2);

(4) Adding the amount of revenue from 

the expansion of certified organic 

production capacity of your farm 

operation during the insurance 

period, as determined by us, to your 

simple average allowable revenue; 

(5) Adding to paragraph (4) the amount 

of revenue from any certified organic 

expansions that occurred in your lag 

year, as determined by us; 

(6) Determining the lesser of the results 

of paragraph (3) and paragraph (5); 

and

(7) Dividing the result of paragraph (6) 

by your simple average allowable 

revenue to determine your 

expanding operation factor.

Industrial Hemp Requirements

50. Industrial Hemp

(a) Industrial hemp is insurable under this 

policy 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:

(1) You must comply with all applicable 

Federal regulations and any 

applicable state or tribal laws.

(2) If your farm operation is mostly 

located in one state but you produce 

industrial hemp in another state, you 

must comply with the regulations of 

the state where the land on which the 

hemp is produced is located.

(3) In addition to the requirements of 

section 48, the entity issuing the 

marketing contract must comply with 

all requirements of the regulatory 

plan in place in the location the 

industrial hemp will be processed 

and must possess facilities, or have 

contractual access to facilities, with 

enough equipment and capacity to 

process the amount of industrial 

hemp contracted.

(4) Industrial hemp grown without a valid 

marketing contract is not insurable, 

even if your 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 revenue to count.

(b) If the industrial hemp is produced in a 

state or tribal territory which has 

assumed regulatory responsibility for 

hemp production, you must comply with 

all requirements and provisions of the 

regulatory plan of that state or tribe and 

possess any license required by that 

plan.

(c) Industrial hemp must be produced using 

seed or plant cuttings adapted to the 

intended use and planting patterns 

appropriate to the intended use (for 

example, if planting industrial hemp to be 

harvested primarily for fiber, the seed 

must be adapted to fiber production and 
Page 54 of 55

the planting pattern must be intended to 

maximize fiber production).

(d) Industrial hemp that is unsalable or 

destroyed due to a delta-9 

tetrahydrocannabinol (THC) level that 

exceeds 0.3 percent will be considered 

damaged due to uninsurable causes. 

For the purposes of loss calculation, the

revenue to count on such acreage will be 

not less than the expected value reported 

on the Revised Farm Operation Report. 

You must notify us prior to destroying the 

industrial hemp, in accordance with 

section 22(c).

(e) Industrial hemp is not eligible for replant 

payments under section 24.

Direct Marketed Commodities Requirements

51. Direct Marketed Commodities

(a) If your farm operation includes revenue 

from commodities sold through direct 

marketing:

(1) Commodities which are sold both 

through direct marketing and other 

marketing channels must have 

separate entries on your Farm 

Operation Report for any of the 

commodities to qualify as sold 

through direct marketing. If a 

commodity is sold partially through

direct marketing, it must have 

separate entries on your Farm 

Operation Report for direct 

marketing sales and other marketing 

channels.

(2) For the purposes of section 18(e)(2) 

and 22(b)(2) you may use direct 

marketing sales records for 

commodities that are sold through 

direct marketing.

(3) Upon our request you must provide 

direct marketing sales records that 

comprise a complete marketing 

record of commodities on your farm 

operation sold through direct 

marketing.

(b) You may report two or more commodities 

sold through direct marketing as 

combined direct marketing.

(1) The expected value of combined 

direct marketing will be based on the 

per acre expected revenue 

determined by the previous threeyear average of allowable revenue 

from all commodities reported as 

combined direct marketing and the 

acres certified for those same three 

years, unless:

(A) Market conditions, commodity 

mixtures, or structures used to 

produce commodities on your 

farm operation have changed

such that the total revenue 

generated from combined direct 

marketing is expected to be 

lower than the three most recent 

years.

(B) If (A) applies, the expected value 

of combined direct marketing will 

be reduced to reflect market 

conditions, commodity mixtures,

or production capacity for the 

insurance year.

(2) Revenue from sources other than 

insurable commodities (e.g., bottled 

water or souvenir sales through a 

farm stand), cost of commodities

purchased for resale, and postproduction expenses must be 

removed when determining your 

expected revenue for combined 

direct marketing.

(3) For the purpose of commodity counts 

in section 19, combined direct 

marketing will count as two 

commodities regardless of the 

number of actual commodities 

reported as combined direct 

marketing.

(4) When providing your direct 

marketing sales records, you may

provide a total value for the 

commodities reported as combined 

direct marketing, provided the total 

reported revenue comprises a 

complete record of revenue 

generated from combined direct 

marketing.

(5) When completing your Final Farm 

Operation Report you may provide a 

total value for the commodities 

reported as combined direct 

marketing.

(6) In lieu of the provisions relating to 

expected value and expected yield in 

section 18:
Page 55 of 55

(A) Individual commodities reported 

as combined direct marketing 

are not required to have 

separate expected values and 

expected yields; and

(B) A Yield and Revenue report is 

not required for any commodities 

reported as combined direct 

marketing (not including portions 

of those commodities not sold 

through direct marketing).

(7) When providing your direct 

marketing sales records, you must 

certify your total planted acres over 

that same three-year period so an 

“expected value” per acre can be 

calculated. You must have 

acceptable verifiable evidence to 

support the acres you certify. Upon 

our request, you must provide those 

records to us. 

52. (Reserved)