Add Income to a Whole Farm Policy

RMA made a changes to the Whole Farm Revenue Protection (WFRP) Policy for 2023+ Reinsurance Years (RY) to remove reference to Expenses.

See the "WFRP: Policy Limits & Capping Procedures Updates - 8.060.0 " and " WFRP: Crop Options & Policy Calculation Updates - 8.060.0 " videos as well as the WFRP Cheat Sheet for more information on these changes.

Add Income/Expenses to a Whole Farm Policy

The following describes the steps for adding income/expenses to the Farm Operation Report for a WFRP policy. For an overview of the individual fields found on the Income/Expenses tab, see "Whole Farm Revenue Protection (WFRP)".

NOTE: Agents will be locked out of making changes to the Whole Farm Income/Expenses page 45 days after the Sales Closing Date.

In the WFRP policy, select the Income/Expenses tab. The Maintain Income & Expenses page opens.

For each tax year, type the Allowable Revenue and/or Allowable Expenses as found on the Whole-Farm History Report and the Allowable Revenue & Expense Worksheet for those years. A value greater than "0" is not required for both fields in a Reinsurance Year.

NOTE: The tax years available are determined by the Tax Year selected when the policy was created (i.e., late, calendar, or fiscal year filer).

If known, in the MPCI Liability field, type the total liability for any MPCI policies the Insured has purchased. The System rounds this number to the nearest whole dollar. Otherwise, continue to the next step.

In the Estimated MPCI Liability field, type the estimated MPCI Liability. If a value is keyed in this field, the System will use it as the MPCI Liability in the premium and liability calculations. Once an actual MPCI Liability value is applied, the System will instead use the actual MPCI Liability in the premium and liability calculations.

If the Insured wants to opt out of indexing procedures, mark the Index Opt Out checkbox. The Indexed Average Revenue and Expenses will not be calculated.

If the policy needs to use the Expanded Operation Average Revenue calculations, mark the Expanded Operations checkbox. When this checkbox is selected on the Income & Expense Record, a field for Adj. Factor will display.

When applicable, in the Adj. Factor field, key the factor determined using the procedures in the WFRP Handbook.

Click Save to calculate the Total Allowable Revenue and Allowable Expenses, Simple Averages, Indexed Averages, Expanded Operations Averages, Historic Averages, Approved Revenue, Approved Expenses, Whole Farm Liability, Total Premium, and Producer Premium.

Indexed Average Revenue and Expenses are only calculated if the tax history qualifies for indexing procedures. In order to qualify, the average revenue for at least one of the two most recent tax years must be greater than the simple average revenue.

10.

If the Schedule F is on file for the policy, mark the Schedule F on File? checkbox.

11.

To apply signatures to the Annual Farm Report (or Farm Operation Report), type the date of the Insured and Agent’s signatures in the Insured Sign Date and Agent Sign Date files in DDMMYYYY format.

12.

In the Agent of Record field, select the agent who signed the Farm Operation Report.

13.

As your next step, click one of the following buttons:

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To save the income/expenses and remain on the Maintain Income & Expense page, click Save.

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To save the income/expenses and return to the Coverages tab, click Save & Exit. The income/expenses display in the Coverage Information grid in the Income/Expense column.

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To discard the income/expenses and return to the View Commodities page, click Cancel.