WFRP (0076)

Overview

The RMA is regularly updating this plan/commodity. Yearly updates for WFRP (and the WFRP Commodity) are shown below:

Beginning in the 2022 RY, the RMA created a WFRP commodity code (0076) under the WFRP Plan Type (076) to accommodate Micro Farm (9110). While the Micro Farm and WFRP Commodity Types are similar, the WFRP Commodity Type requires that users have a diversification of crops.

Beginning in the 2021 RY, RMA has added a new commodity of "Other Combined Direct Market" (Commodity Code = 0606) to the WFRP policy that will be used for farm operations that include revenue from commodities sold through direct marketing and submit direct marketing sales records to the AIP as required. Grower’s will report commodities under this new commodity code when they produce two or more commodities for direct marketing and meet the requirements outlined in the WFRP Handbook.

When a "Other Combined Direct Marketing" commodity is listed on WFRP policy, the expected revenue from these commodities is excluded when determining the Qualifying Revenue Threshold (sometimes referred to as the Minimum Qualifying Amount). The Qualifying Revenue Threshold is used to determine the number of commodities that count as a qualifying commodity as well as how many commodities can be grouped to count as a qualifying commodity.

RMA made a number of changes to the Whole Farm Revenue Protection (WFRP) Policy for 2020+ Reinsurance Years (RY). Many of these policy changes impact current System functionality for WFRP policies. This includes changes to policy limits and capping procedures for both Nursery and Animal/Animal Product Commodities, as well as changes to the calculation of Approved Expenses and Indexed Average Revenue.

In addition, three new history smoothing options—Revenue Substitution (RS), Revenue Exclusion (RX), and Revenue Cup (RC)—were made available for the 2020+ RYs. Finally, changes were also made to the rating of WFRP policies to account for the new RS, RX, and RC options.

The 2020 WFRP Handbook should be consulted for more information and for policy changes that do not affect System functionality.

For more information on these changes, see the videos below as well as the WFRP Cheat Sheet.

To support Whole Farm, the following pages will display WFRP-specific fields.

NOTE: When the reinsurance year affects the appearance of the page from year to year, it is noted.

To allow you to track production and print forms for WFRP policies that don't have an underlying MPCI policy, a Quote for APH Tracking checkbox displays on the Add New MPCI Quote page. When this checkbox is selected, you can set up detail lines and APHs for Whole Farm policies that do not have underlying MPCI policies. This will also tell the System to roll the quote from year to year.

A WFRP policy is created from within an MPCI policy. To elect WFRP, in the Crop Name field, when available for the State/County/Crop, “Whole Farm Revenue Protection” is available (a). Then, in the Crop Plan field, the only available plan to select is “WFRP (76)” (b).

Once WFRP is the selected crop and plan, the Coverage Information section is updated to contain some of the same fields that were on the AGR/AGR-Lite pages for previous Reinsurance Years along with a few additional changes:

• A Related Coverage checkbox is displayed so users can link the WFRP to a related base MPCI coverage when applicable (c).
• There is no longer a Payment Rate field.
• From the Late Processed Flag dropdown (d), the "Whole Farm Revenue Protection (WFRP) Revised Coverage Level" is available for changing the Coverage Level or County on a Whole Farm Coverage. When this reason is selected, the Coverage Level and County fields become editable on the Maintain Coverage page.
• The PHTS/New Producer Request field (e), which has been available for other MPCI Plan Codes, is also displayed for Whole Farm. The Accounting Method field (f) is displayed so a user can select either “Cash Accounting” or “Accrual Accounting” as their accounting method for the year.
• The Tax Year field (g) is displayed; however, the options are different from AGR/AGR-Lite. Whole Farm allows users to choose “Calendar Year”, “Early Fiscal Year”, or “Late Fiscal Year”. If “Early Fiscal Year” or “Late Fiscal Year” is selected, the Beginning Date and Ending Date fields also display for indicating the Fiscal Year dates.

NOTE: Early Fiscal Year filer is defined as producers with a tax year that begins February through August, and a Late Fiscal Year filer is defined as producers with a tax year that begins September through December. January is not included in the fiscal year definitions because producers with a tax year beginning in January are Calendar Year tax filers.

When a Related Coverage exists

Once "WFRP (76)" is selected as the Plan Type, a Related Coverage checkbox is displayed. If this checkbox is selected, a link can be created between WFRP and MPCI policies. This is consistent with the existing related coverage functionality that is in place for STAX and Margin Protection.

When the Related Coverage checkbox is selected, a Select Related Coverage dropdown is displayed.

Related Coverage with the Same AIP

If the related coverage is with the same AIP as the Whole Farm policy, then from the Related Coverage dropdown you can select the related coverage. This dropdown is populated with coverages that have the same State/County as the policy. Users can select one or more base coverages to tie the WFRP coverage to.

NOTE: When a grower has both a Whole Farm Revenue Protection (WFRP) and an MPCI policy, the liability from the MPCI policy is used as part of the WFRP premium calculation. By adding a flag to the WFRP policy, the AIP can track the policies they know will have MPCI liability and then once acres have been processed for the MPCI policies, a report can be created to obtain a list of policies for which MPCI liability needs to be added.

Related Coverage with a Different AIP

If the related coverage is held by a different AIP, clicking Add in the Related Coverage(s) with Another AIP field will open a popup that allows you to select the AIP and enter policy information.

On the Farm Operation Report

Also, as part of the Whole Farm Revenue Protection processing cycle, growers report their intended commodities at Sales Closing and then later submit a revised Farm Operation Report with the actual commodities. For any number of reasons, growers may decide not to plant a particular commodity or may be unable to, so the commodities in the intended Farm Operation Report and the revised Farm Operation Report may not be identical. Given this, it is possible that at Sales Closing when the grower submitted their intended Farm Operation Report, they had 3 or more qualifying commodities, but once the revised report was completed, the policy no longer had 3 or more qualifying commodities and therefore is no longer eligible for the 80% and 85% Coverage Levels.

In this scenario, RMA requires that the Coverage Level is reduced. Since the Coverage Level change will be occurring after the LRR cutoff date, RMA has issued a new Late Reported Reason (referred to as Late Processed Flag on the user interface) of “Whole Farm Revenue Protection (WFRP) Revised Coverage Level” that AIPs will apply to Whole Farm Revenue Protection coverages for which the Coverage Level was changed after the LRR cutoff date due to a change in qualifying commodities. So long as this Late Processed Reason is selected and transmitted on the P14 record, RMA will not assess LRRs on the WFRP coverages.

Similar to the MPCI Coverages tab, the Whole Farm Coverages tab allows a user to view and/or maintain, when applicable, several aspects of the coverage such as the County, Crop, Plan, Coverage Level, Premium, and Transmission information. Additionally, Commodities and Income/Expenses can be added from the WFRP Coverage Information grid.

On the Commodities tab, a user can add, edit, or delete the intended and revised Farm Operation Report values for all commodities on the coverage.

a. Commodity Row with Intended Values: Displays existing commodities on the policy. The first line of a commodity row allows for keying of intended values.
b. Revision Row for Commodity: Allows user to key revised values for inclusion on the revised Farm Operation Report.
c. Add New Commodity Row: Allows the user to add a new commodity at either the SCD or the ARD. This blank row is always available at the bottom of the grid.
d. Revision icon: Adds a revision row to the corresponding commodity for keying revised values.
e. Delete icon: Deletes the row that corresponds with the icon. This might be a revision row or the entire commodity.
f. Edit icon: Opens the Maintain Commodity page for the corresponding commodity so user can access exception processing fields.
g. Insured & Agent Sign Dates: Allows the user to key sign dates for the revised Farm Operation Report.
h. Final FOR: Opens the Final Farm Operation Report so the user can add revenue and production values for transmission to the RMA.

On the Commodities tab, a user can add or delete commodities and view/edit commodity details.

  1. Add: To add a commodity to the policy, a user clicks Add to open the Add New Commodity page.

  2. Delete: To delete an existing commodity from the policy, a user marks the checkbox that corresponds with the commodity that needs deleting and clicks Delete.

  3. Total Expected Revenue: This is the sum of the Expected Revenue for all commodity detail lines.

  4. Information Icon: When a user hovers over the blue information icon, a popup displays with the following values for the policy:

    5. • Total Commodities: This is the total number of commodity detail lines.

    NOTE: If two commodities with the same Commodity Code exist, then the System considers these one commodity. However, the only time two commodities with the same Commodity Code should exist is if one of them is Native Sod; otherwise, the System will suspend the coverage.
    • Qualifying Revenue Threshold: This is the product of Round (Round (Round 1/Total Commodities, 3) x 0.333, 3) x Total Expected Revenue, 0).
    • Total Qualifying Commodities: This is the total number of commodities with Expected Revenue that meets or exceeds the Qualifying Revenue Threshold. If multiple commodities do not meet the Qualifying Revenue Threshold on their own, they are summed together to meet the minimum.

    NOTE: If two commodities with the same Commodity Code exist on a policy, then the System considers these one commodity and sums their Expected Revenue for this calculation.

  5. Commodity Name hyperlink: To edit an existing commodity, a user clicks the Commodity Name hyperlink. The Maintain Commodity page opens. If “Revised” displays next to the Commodity Name, then the commodity has been revised and all fields reflect the revised commodity values; otherwise, the intended values are shown.

  6. Fast Edit PR: To add final production and revenue amounts for transmitting to the RMA, click Fast Edit PR. The WFRP Final Report page opens.

The Income/Expenses tab allows a user to enter the Insured’s allowable revenue and/or expenses from the Farm Operation Report for each year in the Whole Farm history period to calculate WFRP values.

  1. Allowable Revenue: For each tax year, this is the farm revenue, specified by the WFRP policy and including applicable adjustments, from the production of commodities produced by the Insured’s farm operation or purchased for further growth and development by the Insured’s farm operation, that the IRS requires the Insured to report on farm tax records. The total for all tax years displays in the Total row. This is not required if an Allowable Expense is only available.

  2. Allowable Expenses: For each tax year, this is the farm’s total number of expenses, specified by the WFRP policy and adjusted as applicable, that are incurred in the production of commodities on the Insured’s farm and reported to the IRS on farm tax records. The total for all tax years displays in the Total row. This is not required if an Allowable Revenue is only available.

  3. Indexed Allowable Revenue: This column is used to calculate the Indexed Average Revenue(c1). Indexed Average Revenue is calculated for growers with increasing revenue to determine if increased coverage is applicable. As a reminder, not all growers qualify to use indexing procedures.

  4. Revenue Used: A new column for “Revenue Used” has also been added to the Tax History grid on the Income & Expenses tab. This new field was modeled after the Yield Used column on the APH page and, when used in conjunction with the RS/RX column, is intended to show you whether RS and/or RX applies to a given year and the revenue amount used to calculate the RS and RX Avg Revenue or RS and RX Indexed Avg Revenue values.

    • If RS applies, the Revenue Used will be the Revenue Substitution value.
    • If RX applies, the Revenue Used will be $0 to indicate that the year was excluded in calculations.
    • If both RS and RX apply to a given year, then both the Revenue Substitution value and $0 will display in this column to show you which years were substituted and excluded in calculation of the RS/RX averages.
    • If RS or RX does not apply, the Indexed Allowable Revenue will display in this field, and if indexing does not apply, then the Allowable Revenue will display in this field.

  5. RS/RX: This column shows you which years RS and/or RX applies to in the calculation of the RS Avg Revenue, RX Avg Revenue, Indexed RS Avg Revenue, and Indexed RX Average Revenue values at the bottom of the grid.

    • If RS is elected on the coverage and the Allowable Revenue/Indexed Allowable Revenue for the year is less than 60% of the Simple Average/Indexed Simple Average Revenue, the system will display “RS” in this column.
    • If RX is elected on the coverage and the Allowable Revenue/Indexed Average Revenue is the lowest in the tax history, the system will display “RX” in this column.
    • If both RS and RX are elected on the coverage and RS/RX both apply as described above, the system will display both values separated by a forward slash.
    • If neither RS or RX are elected on the coverage, this column will not display.

  6. Simple Average: For the Allowable Revenue and Allowable Expenses columns, this is the result of the sum of all Revenue for all years divided by 5. This is rounded to the nearest whole number.

  7. Indexed Average: For the Allowable Revenue and Allowable Expenses columns, this is the product of the Revenue Trend Factor multiplied by the Average Revenue. This value is rounded to the nearest whole dollar.

    8. To find the Revenue Trend Factor, the System divides the Allowable Revenue for each Tax Year by the Allowable Revenue from the previous Tax Year (rounded to 3 decimal places); then, it sums the values for each Tax Year and divides them by 4 (rounded to 3 decimal places); and finally, it multiplies that value by 4 (rounded to 3 decimal places).

  8. Expanded Average: For the Allowable Revenue and Allowable Expenses columns, when the Expanded Operations checkbox is marked, this is the Average Revenue and Average Expenses multiplied by the Adjustment Factor and then rounded to the nearest whole dollar. This is also referred to as the Expanded Operation Average. This value is read only.

  9. Historic Average: For the Allowable Revenue and Allowable Expenses columns, this is the higher of the Simple Average, Indexed Average, or Expanded Operation Average.

  10. MPCI Liability: The total MPCI Liability for all MPCI policies the Insured has in addition to the WFRP policy.

  11. Estimated MPCI Liability: The total expected MPCI Liability for all MPCI policies the insured has in addition to the WFRP policy if the actual MPCI Liability is not available.

  12. Total Expected Revenue: The sum of the Expected Revenue from all commodity detail lines on the Commodities tab, rounded to the nearest whole dollar.

  1. Allowable Revenue: For each tax year, this is the farm revenue, specified by the WFRP policy and including applicable adjustments, from the production of commodities produced by the Insured’s farm operation or purchased for further growth and development by the Insured’s farm operation, that the IRS requires the Insured to report on farm tax records. The total for all tax years displays in the Total row. This is not required if an Allowable Expense is only available.

  2. Allowable Expenses: For each tax year, this is the farm’s total number of expenses, specified by the WFRP policy and adjusted as applicable, that are incurred in the production of commodities on the Insured’s farm and reported to the IRS on farm tax records. The total for all tax years displays in the Total row. This is not required if an Allowable Revenue is only available.

  3. Simple Average: For the Allowable Revenue and Allowable Expenses columns, this is the result of the sum of all Revenue for all years divided by 5. This is rounded to the nearest whole number.

  4. Indexed Average: For the Allowable Revenue and Allowable Expenses columns, this is the product of the Revenue Trend Factor multiplied by the Average Revenue. This value is rounded to the nearest whole dollar.

    5. To find the Revenue Trend Factor, the System divides the Allowable Revenue for each Tax Year by the Allowable Revenue from the previous Tax Year (rounded to 3 decimal places); then, it sums the values for each Tax Year and divides them by 4 (rounded to 3 decimal places); and finally, it multiplies that value by 4 (rounded to 3 decimal places).

  5. Expanded Average: For the Allowable Revenue and Allowable Expenses columns, when the Expanded Operations checkbox is marked, this is the Average Revenue and Average Expenses multiplied by the Adjustment Factor and then rounded to the nearest whole dollar. This is also referred to as the Expanded Operation Average. This value is read only.

  6. Historic Average: For the Allowable Revenue and Allowable Expenses columns, this is the higher of the Simple Average, Indexed Average, or Expanded Operation Average.

  7. MPCI Liability: The total MPCI Liability for all MPCI policies the Insured has in addition to the WFRP policy.

  8. Estimated MPCI Liability: The total expected MPCI Liability for all MPCI policies the insured has in addition to the WFRP policy if the actual MPCI Liability is not available.

  9. Total Expected Revenue: The sum of the Expected Revenue from all commodity detail lines on the Commodities tab, rounded to the nearest whole dollar.

  10. Approved Revenue: The lesser of the Total Expected Revenue or Historic Average Revenue, rounded to the nearest whole dollar. This value is read only.

    NOTE: If, at the time intended values are reported, the liability cap is not exceeded, but when revised values are reported, the intended values are exceeded, then the WFRP Liability is capped at 8.5 million and the Approved Revenue is capped at 8.5 million divided by the Coverage Level, the System will display a “*Capped” indicator next to the Expected Revenue.

  11. Approved Expenses: The calculations for this total depend on these factors:

    12. • If the Approved Revenue is equal to the Total Expected Revenue, then the Approved Expenses are calculated by dividing the Total Expected Revenue by the Average Allowable Revenue (rounded to 3 decimal places) and then multiplying the result by the Average Allowable Expense (rounded to the nearest whole dollar).
    • If the Approved Revenue is equal to the Whole Farm Historic Average Revenue, then the Approved Expenses are the Whole Farm Historic Average Expenses determined on the Whole Farm History Report.

  12. SCD Approved Revenue: The Approved Revenue at the Sales Closing Date.

  13. SCD Approved Expenses: The Approved Expenses at the Sales Closing Date.

  14. 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.

  15. Expanded Operations: If the policy needs to use the Expanded Operation Average Revenue calculations, mark this checkbox. This value is found by multiplying the average revenue by the entered Adjustment Factor (0.01-0.35).

  16. Whole Farm Liability: This value is the Approved Revenue x Coverage Level Percent.

  17. Total Premium: This value is the total premium for the policy.

  18. Producer Premium: This value is the Total Premium minus the Subsidy Amount.

  19. Schedule F on File?: If the Insured has provided a copy of the Schedule F Tax Form, mark this checkbox.

  20. Insured and Agent Sign Dates & Agent of Record: The signature dates for the Income & Expenses reported and the Agent of Record for the WFRP policy if different from the servicing agent/agent of record on the grower record.

To support the uploading of attachments required for WFRP, these new Attachment Types were added:

• WFRP Application
• WFRP Expense and Revenue Worksheet
• WFRP History Report
• WFRP Farm Operation Report (Original, Revised, & Final)
• WFRP AP/AR Report
• WFRP Inventory Report
• WFRP Animal & Nursery Inventory
• WFRP Replant Worksheet
• WFRP Claim for Indemnity
• WFRP Combo Form
• WFRP Exp Value & Yld Wksht

The WFRP Final Report page is accessed via the Final FOR button on the Commodities tab to allow users to enter final production and revenue for Whole Farm Revenue Protection policies so that it can transmitted to the RMA.

NOTE: For 2020 and prior reinsurance years, the Final FOR button was named "Fast Edit PR".

  1. Production Verified: From the dropdown, select "Y" or "N" to indicate whether the production has been verified. This will default to "N".

  2. Final Production: Type the Final Production for the commodity. The System will round to two decimal places. This is not required.

  3. Final Revenue: Type the Final Revenue for the commodity. The System will round this value to two decimal places. This is not required.

When the WFRP Final Report values are saved, they will be included in the P26 record of the Transmission.

 

Want to learn more?

"Create a Whole Farm Revenue Protection Policy"

"Add a Commodity to a Whole Farm Policy"

"Add Income to a Whole Farm Policy"