Adjusted Gross Revenue-Lite (AGR-Lite) Insurance
Frequently Asked Questions
- Why would I consider purchasing an AGR-Lite Plan?
You might want to consider an AGR-Lite plan if you: Want whole-farm insurance to protect the bottom line for your operation from severe economic loss; want umbrella protection over selected individual crop coverage; have a diversified operation that includes organic farming practices and/or direct marketed production; or produce commodities not covered under traditional crop insurance policies.
- What is the AGR-Lite timeline?
Sales closing date: March 15 is the enrollment date for new applicants. Policy change and the cancellation dates for all policies is January 31.
Year of insurance: For the year of application, you will not be covered for any losses that occur earlier than 10 days after the company receives your properly completed application.
Insurance year: A calendar year if you file your taxes on a calendar year basis. A fiscal year if you file your taxes on a fiscal year basis.
Revenue and expenses report filing deadline: March 15 for new applications. January 31 deadline applies for renewal policies to complete a farm report.
Beginning inventory report filing deadline: Must be filed by the end of the first month for calendar of fiscal year to correspond with insuredís IRS tax year.
Claims: Claims are settled after taxes are filed for the insurance year.
- What coverage is available?
65 percent coverage level with 75 percent or 90 percent payment rate.
75 percent coverage level with 75 percent or 90 percent payment rate
80 percent coverage level with 75 percent or 90 percent payment rate. To qualify for the 80 percent coverage level, you must produce a minimum of three commodities as determined by the premium calculator, located on the RMA website.
- What are the coverage choices and maximum income levels to qualify?
|AGR Allowable Income
Producer has reported revenue under schedule F, IRS 1040 (or equivalent) for a minimum of five years. The average adjusted gross revenue is $1 million and the producer grows multiple crops, but at least three qualify with enough adjusted revenue for the 80/90 coverage. That means after the producerís tax return is filed and claim is settled, they would be paid 90 cents of every dollar under $800,000 of adjusted gross revenue. The producer would ensure their income would not file below $720,000.
- Where can I purchase crop insurance?
See your local crop insurance agent. All federal multi-peril crop insurance, including catastrophic and revenue coverage insurance policies, are available from private insurance agents. A list of crop insurance agents is available at all USDA Service Centers or at the Risk Management Association (RMA) web site.
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