Adjusted Gross Revenue Insurance
Stored: 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]
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
- https://www.rma.usda.gov/en/Policy-and-Procedure/Insurance-Plans/AGR
- wikipedia:Adjusted Gross Revenue Insurance
References
- ↑ "Adjusted Gross Revenue Insurance". https://legacy.rma.usda.gov/pubs/2009/adjustedgrossrevenue.pdf. Retrieved January 30, 2025.
- ↑ "Adjusted Gross Revenue Insurance". https://legacy.rma.usda.gov/pubs/2009/adjustedgrossrevenue.pdf. Retrieved January 30, 2025.
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