Adjusted Gross Revenue Insurance: Difference between revisions

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|ProgramType=Program
|ProgramType=Program
|OrgSponsor=Risk Management Agency
|OrgSponsor=Risk Management Agency
|CreationLegislation=
|TopOrganization=Department of Agriculture
|Purpose=To protect agricultural producers from revenue loss by offering insurance based on a farm's historical adjusted gross revenue, providing coverage for multiple commodities and some livestock, thus ensuring financial stability regardless of market or production challenges.<ref>{{cite web |url=https://legacy.rma.usda.gov/pubs/2009/adjustedgrossrevenue.pdf |title=Adjusted Gross Revenue Insurance |accessdate=January 30, 2025}}</ref>
|Purpose=To protect agricultural producers from revenue loss by offering insurance based on a farm's historical adjusted gross revenue, providing coverage for multiple commodities and some livestock, thus ensuring financial stability regardless of market or production challenges.<ref>{{cite web |url=https://legacy.rma.usda.gov/pubs/2009/adjustedgrossrevenue.pdf |title=Adjusted Gross Revenue Insurance |accessdate=January 30, 2025}}</ref>
|Website=https://www.rma.usda.gov/en/Policy-and-Procedure/Insurance-Plans/AGR
|Website=https://www.rma.usda.gov/en/Policy-and-Procedure/Insurance-Plans/AGR
|ProgramStart=1999
|ProgramStart=1999
|InitialFunding=
|Duration=Discontinued
|Duration=Discontinued
|Historic=true
|Historic=Yes
}}
}}
'''Adjusted Gross Revenue Insurance (AGR)''' was a federal crop insurance program aimed at providing whole-farm revenue protection for agricultural producers by insuring against revenue losses based on the farm's historical adjusted gross revenue. This program was unique in covering multiple commodities, including some livestock, under one policy, offering a holistic approach to risk management for diversified farms.<ref>{{cite web |url=https://legacy.rma.usda.gov/pubs/2009/adjustedgrossrevenue.pdf |title=Adjusted Gross Revenue Insurance |accessdate=January 30, 2025}}</ref>
'''Adjusted Gross Revenue Insurance (AGR)''' was a federal crop insurance program aimed at providing whole-farm revenue protection for agricultural producers by insuring against revenue losses based on the farm's historical adjusted gross revenue. This program was unique in covering multiple commodities, including some livestock, under one policy, offering a holistic approach to risk management for diversified farms.<ref>{{cite web |url=https://legacy.rma.usda.gov/pubs/2009/adjustedgrossrevenue.pdf |title=Adjusted Gross Revenue Insurance |accessdate=January 30, 2025}}</ref>

Revision as of 22:36, 11 February 2025


Stored: Adjusted Gross Revenue Insurance

Adjusted Gross Revenue Insurance
Type Program
Sponsor Organization Risk Management Agency
Top Organization Department of Agriculture
Creation Legislation N/A
Website Website
Purpose To protect agricultural producers from revenue loss by offering insurance based on a farm's historical adjusted gross revenue, providing coverage for multiple commodities and some livestock, thus ensuring financial stability regardless of market or production challenges.[1]
Program Start 1999
Initial Funding
Duration Discontinued
Historic Yes

Adjusted Gross Revenue Insurance (AGR) was a federal crop insurance program aimed at providing whole-farm revenue protection for agricultural producers by insuring against revenue losses based on the farm's historical adjusted gross revenue. This program was unique in covering multiple commodities, including some livestock, under one policy, offering a holistic approach to risk management for diversified farms.[2]

Official Site

Goals

  • Provide revenue protection for diversified farming operations.[3]
  • Stabilize farm income by mitigating the impact of revenue shortfalls.
  • Encourage sustainable farming practices by reducing financial risks.

Organization

AGR was managed by the Risk Management Agency (RMA) within the U.S. Department of Agriculture (USDA). Local crop insurance agents sold and serviced AGR policies, with oversight and policy development from RMA. Funding for premiums was subsidized by the federal government, with farmers paying a portion based on their chosen coverage level.

The leader of the program would have been the **Administrator of the Risk Management Agency**.

Partners

  • No specific partnerships were listed, but AGR involved cooperation with private insurance companies and local agents.

History

Launched in 1999 as a pilot program, AGR was designed to cover the revenue of farms with multiple commodities, including some livestock, based on their historical performance. It was expanded to include more types of farms and commodities but faced challenges with complexity and uptake. Over time, AGR was discontinued in favor of newer, more streamlined insurance products like the Whole-Farm Revenue Protection (WFRP) introduced in 2015, which continued the whole-farm approach but with an updated methodology.

Funding

Specific initial funding details are not publicly detailed, but AGR premiums were subsidized by the USDA, with the exact cost-sharing ratio varying based on coverage levels. The program's continuation was contingent on Congressional budget allocations for crop insurance.

Implementation

Implementation involved:

  • Farmers providing historical income records to establish a revenue baseline.
  • Calculation of coverage based on a percentage of the farm's average adjusted gross revenue.
  • Selling policies through approved private insurance providers under RMA guidelines.

The program was discontinued as it transitioned into the WFRP, which offered similar but updated protection.

Related

External links

References

  1. ↑ "Adjusted Gross Revenue Insurance". https://legacy.rma.usda.gov/pubs/2009/adjustedgrossrevenue.pdf. Retrieved January 30, 2025. 
  2. ↑ "Adjusted Gross Revenue Insurance". https://legacy.rma.usda.gov/pubs/2009/adjustedgrossrevenue.pdf. Retrieved January 30, 2025. 
  3. ↑ "Adjusted Gross Revenue Insurance". https://legacy.rma.usda.gov/pubs/2009/adjustedgrossrevenue.pdf. Retrieved January 30, 2025. 

Public Domain This article incorporates public domain material from Jasper Womach, Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition, Congressional Research Service, http://ncseonline.org/nle/crsreports/05jun/97-905.pdf 

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