Adjusted Gross Revenue Insurance: Difference between revisions

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'''Adjusted Gross Revenue Insurance''' (or '''AGR Insurance''') is a term used in United States federal [[agricultural law]] referring to a [[revenue]] [[insurance]] program implemented in 1999 as a [[pilot program]] by the [[USDA]], which continues on a limited basis. It allows some farmers to receive a guarantee of a percentage of their revenue for multiple [[commodities]], including some [[livestock]] revenue, rather than just the revenue from an individual commodity.  
{{Program
|ProgramName=Adjusted Gross Revenue Insurance
|ProgramType=Program
|OrgSponsor=Risk Management Agency
|TopOrganization=Department of Agriculture
|Purpose=Protect farmers from revenue loss with insurance based on past revenue, covering multiple commodities and livestock for financial stability despite market or production issues
|Website=https://www.rma.usda.gov/en/Policy-and-Procedure/Insurance-Plans/AGR
|ProgramStart=1999
|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.<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 ''AGR-Lite'' is similar to the AGR insurance program described above, except that AGR-Lite is available to smaller farmers (income below $512,821 and liability below $250,000). Where the basic AGR program limits eligible livestock coverage to 35% of expected allowable income, AGR-Lite contains no limitations to the proportion of livestock income.
{{Official URL (simple)|url=https://www.rma.usda.gov/en/Policy-and-Procedure/Insurance-Plans/AGR}}


== References ==
==Goals==
*{{CRS|article = Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition|url = http://ncseonline.org/nle/crsreports/05jun/97-905.pdf|author= Jasper Womach}}
* Provide revenue protection for diversified farming operations.<ref>{{cite web |url=https://legacy.rma.usda.gov/pubs/2009/adjustedgrossrevenue.pdf |title=Adjusted Gross Revenue Insurance |accessdate=January 30, 2025}}</ref>
* Stabilize farm income by mitigating the impact of revenue shortfalls.
* Encourage sustainable farming practices by reducing financial risks.


{{DEFAULTSORT:Adjusted Gross Revenue Insurance}}
==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==
* [[Risk Management Agency]]
* [[Whole-Farm Revenue Protection]]
==External links==
* https://www.rma.usda.gov/en/Policy-and-Procedure/Insurance-Plans/AGR
* [[wikipedia:Adjusted Gross Revenue Insurance]]
==References==
<references />
{{CRS|article = Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition|url = http://ncseonline.org/nle/crsreports/05jun/97-905.pdf|author= Jasper Womach}}


[[Category:United States Department of Agriculture programs]]
[[Category:United States Department of Agriculture programs]]

Latest revision as of 21:29, 12 March 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 Protect farmers from revenue loss with insurance based on past revenue, covering multiple commodities and livestock for financial stability despite market or production issues
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.[1]

Official Site

Goals

  • Provide revenue protection for diversified farming operations.[2]
  • 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. 

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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