A Risk Management Agency Fact Sheet 

Adjusted Gross Revenue 

(AGR) 

November 2010 

United States 

Department of 

Agriculture 

Program 

Aid 

Number 

1906 

Adjusted Gross Revenue (AGR) crop insurance provides 

producers with protection against low revenue from natural 

causes and market fluctuations. The insurance covers 

income from agricultural commodities, as well as income 

from animals, animal products, and aquaculture species 

reared in a controlled environment. 

Adjusted Gross Revenue: 

 - Uses your historical Internal Revenue Service (IRS) 

tax form (Schedule F or equivalent forms) information 

and an annual farm report as a base;

 - Provides insurance for multiple agricultural 

commodities in one product; 

 - Establishes revenue as a common denominator for the 

production of all agricultural commodities. 

AGR Timeline 

Sales Closing Date: You must buy or cancel your policy 

on or before January 31. 

Beginning of Insurance: All existing policies roll over 

each year if they are not canceled or changed. The 

insurance attaches each year on January 1. For new 

policies, insurance coverage will begin 10 days after a 

properly completed application is received. 

Contract Change Date: You must make any and all 

changes to your insurance contract on or before August 31. 

Insurance Year: Defined as a calendar year in which the 

sales closing date occurs and includes both calendar-year 

and fiscal-year filings (corresponding to the policyholder’s 

IRS tax period). 

Claims: Claims are settled after taxes are filed for the 

insurance year. 

Availability 

AGR insurance is available in: California (selected 

counties), Connecticut, Delaware, Florida (selected 

counties), Idaho (selected counties), Maine, Maryland 

(selected counties), Massachusetts, Michigan (selected 

counties), New Hampshire, New Jersey, New York 

(selected counties), Oregon (selected counties), 

Pennsylvania (selected counties), Rhode Island, Vermont, 

Virginia (selected counties), and Washington (selected 

counties). 

Eligibility

To meet the eligibility criteria for AGR coverage, you must:

 - Be a U.S. citizen or resident; 

 - File a calendar-year or fiscal-year farm tax return; 

- Produce agricultural commodities primarily in pilot 

counties (may include income from contiguous nonpilot counties);

 - Have liability not exceeding $6.5 million;

 - Have had same tax entity for 7 years (filed 5 

consecutive years of Schedule F tax forms, plus 

previous year and insurance year) unless a change in 

tax entity is reviewed and approved by your insurance 

provider; 

- Purchase traditional Federal crop insurance, if 

available, when more than 50 percent of your expected 

income is from insurable commodities (when you 

purchase both AGR and other crop insurance plans, the 

AGR premium will be reduced); and 

 - Earn no more than 35 percent of expected allowable 

income from animals and animal products. 

Insured Causes of Loss 

Insurance is provided against revenue loss due to any 

unavoidable natural occurrences during the current or 

previous insurance year or due to market fluctuations that 

cause a revenue loss during the current insurance year. No 

payment will be made for losses due to negligence, 

mismanagement, or wrongdoing by the policyholder, the 

policyholder's family, household members, tenants, 

employees, or contractors; crop abandonment; bypassing of 

acreage; or other causes listed in the insurance policy. 

AGR Application Information

When completing an AGR application, you must submit: 

 - A history calculation worksheet, including 5 years of 

allowable income and expense data from IRS tax 

returns (Schedule F or equivalent forms);

 - An annual farm report for the insurance year listing 

each commodity to be produced, the expected quantity 

of the commodity to be produced, and the expected 

price for the commodity; 

- Beginning inventories, if applicable; and 

- An indication of changes that will result in lower 

income for the insurance year than the historical 

average. 

This fact sheet gives only a general overview of the crop insurance program and is not a complete policy. For further information and an 

evaluation of your risk management needs, contact a crop insurance agent. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Choosing a Revenue Guarantee

AGR liability (protection) is calculated by multiplying 

the approved, AGR by the coverage level and payment 

rate percentage you select from the county Special 

Provisions of Insurance actuarial document (see table 

below). Coverage levels and payment rate eligibility 

vary with the number of commodities you produce. You 

may select only one coverage amount. 

Available Protection Amounts 

Coverage 

Payment 

Minimum # of 

Commodities* 

Maximum 

Annual 

Income** 

Level Rate 

65 75 1 $13,333,333 

65 90 1 $11,111,111 

75 75 1 $11,555,555 

75 90 1 $ 9,629,629 

80 75 3 $10,833,333 

80 90 3 $ 9,027,777 

*Must meet minimum income requirements.
 

**The Maximum Annual Income represents the maximum approved 

farm revenue at each coverage level and payment rate to be eligible for 

AGR due to the $6.5 million maximum liability allowed. 

Loss Payments

Loss payments are triggered when the adjusted income 

for the insured year is less than the loss inception point. 

The loss inception point is calculated by multiplying the 

approved AGR by the selected coverage level. Once a 

revenue loss is triggered, you are paid based on the 

payment rate you selected, either 75 cents or 90 cents 

for each dollar lost. 

Loss Payment Example

Assumptions:

 - 80-percent coverage level and 90-percent payment 

rate chosen; 

 - Approved AGR of $94,900 and actual revenue from 

the farm for the year was $21,000;

 - Liability: $94,900 x 0.80 x 0.90 = $68,328; then 

- Loss Inception Point: $94,900 x 0.80 = $75,920. 

Loss Scenario: 

$75,920 - $21,000 revenue to count = $54,920 

revenue loss; then 

$54,920 x 0.90 payment rate = $49,428 indemnity 

payment. 

Note: If your allowable expenses for the current crop 

year fall below 70 percent of the approved expenses, the 

approved AGR payments will be reduced. 

This summary is for general illustration purposes 

only. Please contact a private crop insurance agent to 

learn more about AGR. 

Contact Us 

United States Department of Agriculture 

Risk Management Agency 

1400 Independence Ave., SW, Stop 0801 

Washington, D.C. 20250-0801 

Telephone: (202) 690-2803 

Fax: (202) 690-2818 

Web site: http://www.rma.usda.gov 

E-mail: rma.cco@rma.usda.gov 

For More Information 

AGR insurance policies are available from private 

insurance agents. A list of crop insurance agents is 

available at all USDA Service Centers throughout the 

United States, or see RMA's online agent locator at: 

http://www3.rma.usda.gov/tools/agents/companies/. 

Policy Information: http://www.rma.usda.gov/ 

policies/agr.html 

Premium Calculator: http://www3.rma.usda.gov/ 

apps/premcalc 

Download Copies from the Web 

Visit our online publications/fact sheets page at: 

http://www.rma.usda.gov/pubs/rme/fctsht.html. 

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, 

color, national origin, age, disability, and where applicable, sex, 

marital status, familial status, parental status, religion, sexual 

orientation, genetic information, political beliefs, reprisal, or 

because all or a part of an individual's income is derived from 

any public assistance program. (Not all prohibited bases apply 

to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, 

large print, audiotape, etc.) should contact USDA's TARGET 

Center at (202) 720-2600 (voice and TDD). 

To file a complaint of discrimination write to: USDA, Director, 

Office of Civil Rights, 1400 Independence Avenue, S.W., 

Washington, D.C. 20250-9410 or call (800) 795-3272 (voice) or 

(202) 720-6382 (TDD). USDA is an equal opportunity provider 

and employer. 

Risk Management Agency Adjusted Gross Revenue/PA-1906