Step 3: Learn about Crop Insurance Options in Hawai'i: Focusing on Federal Crop Insurance Overview: Whole-Farm Revenue Protection (WFRP) and Micro Farm
Learn Which Type of Insurance is Best for Your Business
Watch this video to learn how to reduce your liability risk and protect your investments through liability, property and crop insurance for your farm business.
Micro-Whole Farm Revenue Protection Program
After watching the video, take a deeper dive into the Micro-Whole Farm Revenue Protection Program by viewing this slide, delivered by Lane Webb with the USDA FPAC-RMA.
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Protecting Your Business through Crop Insurance for Small Diversified Farm Businesses and Nurseries
Insurance Agents Actively Serving Hawaii's Farm Businesses
Speakers presenting these educational materials will help viewers learn about the general types of crop insurance available to Hawai’i producers, with a focus on the Whole Farm Revenue Protection Program and Micro-Whole Farm Revenue Program for Hawai’i growers.

Introduction to Crop Insurance in Hawai'i
These presentations introduce crop insurance programs which help growers protect against losses due to market conditions (e.g. market glut due to inconsistent growing conditions and missed market opportunities due to poor weather) and the USDA’s commitment to making crop insurance affordable by providing a 62% subsidy of grower-paid premium for these federal insurance programs. She explains how growers are required to pay a premium and administration fees and that premiums are determined by grower and depending on their crop, county, coverage level, approved yields, approved revenue or tree count/age. She provides examples of coverage options starting with 22% coverage up to 85%.
Most of these policies guarantee up to 75% of: Approved Yields, Dollar Value of Trees, or Nursery Inventory Insurance Value -OR- guarantee up to 85% of their Approved Gross Revenue on WFRPP or Micro-WFRPP.

One of the most basic coverages is the Catastrophic Coverage Level (CAT), which covers 22%. However, she points out that the CAT is not offered with the Whole Farm Protection Program, Micro-WFPP or Livestock programs. The basic coverage fee is estimated at the cost of a $655 administration fee with no additional costs for premiums.


History of the WFRPP and Micro-WFRPP:

The WFRPP was created out of the 2014 Farm Bill, which required that the USDA Risk Management Agency (RMA) provide a whole-farm crop insurance option. The Micro-WFRPP is intended to provide the same type of whole-farm crop insurance, but for producers that generate under $350,000 of approved revenue. (In contrast, producers participating in the WFRPP may generate up to $17 million of insured revenue).

These programs provide coverage for all crops on a farm under one policy, rather than insuring commodity by commodity. 

The ‘Revenue Guarantee’ for these programs is based upon a grower’s history. 

To qualify for these programs, you must be:

  • US Citizen or resident,
  • Be eligible to receive federal benefits,
  • File a Schedule F or other similar tax revenue form for a specified number of years,
  • Have no more than 50% of total revenue come from commodities boug​​ht for resale (meaning, you produce at least 50% of your product).

Covers loss from:

  • Adverse weather conditions,
  • Wildlife and wildfires,
  • Insects and Plant Diseases (if not controllable by recommended means),
  • Earthquake or volcanic eruption,
  • Failure of the irrigation supply, if caused by an insured peril during the insurance period,
  • Decline in market price not resulting from man-made circumstances.

FAQ: What type of record-keeping is required to participate in the WFRPP or the Micro-WFRPP? You must have 5 consecutive years of filing a Schedule F or similar tax form to qualify for the WFRPP. To qualify for the Micro-WFRPP, you only need to show 3 consecutive years of filing a Schedule F or similar tax form. 

FAQ: Compared to the WFRPP, how does the Micro-WFRPP reduce the amount of record keeping and documentation producers need to submit to qualify for this crop insurance. To qualify for the WFRPP, you must also provide sales receipts or other documentation to demonstrate the pricing you’re selling each of your crops/commodities. However, under the Micro-WFRPP, you are not required to submit this additional documentation of your pricing since this program does not assign individual pricing for individual crops. 


FAQ: When do I need to apply for WFRPP or Micro-WFRPP? Those applying for the WFRPP by calendar year, need to apply by March 15th each year. The deadline for the Micro-WFRPP applying by the calendar year is April 15th each year. Those applying by fiscal year for either the WFRPP or Micro-WFRPP, must apply by November 20th each year.

FAQ: What type of premium subsidy will I receive? Premium subsidies levels vary by coverage level. All farms insured with the Micro-WFRPP receive a whole-farm premium subsidy.

FAQ: How many commodities do I need to grow to qualify for the WFRPP or Micro-WFRPP? To participate in the WFRPP at the 80% to 85% coverage levels, you must have at least three commodities covered. However, you can participate in the Micro-WFRPP at the 50-85% coverage level, regardless of how many commodities you cover.

FAQ: When do I provide my Adjusted Gross Revenue? Growers may provide their adjusted gross revenue by calendar year or fiscal year, depending on how you file your taxes.

FAQ: When are claims finalized? Claims are finalized when taxes are filed for that year of coverage.

FAQ: Will I receive a replant payment? Replant payments are available under the WFRPP (if not already covered under a MPCI) but NOT the Micro-WFRPP.

FAQ: Can I carry Multi-Peril Crop Insurance (MPCI) and still qualify for the WFRPP and Micro-WFRPP? Yes, you can carry both of these policies and would receive a credit on your WFRPP or Micro-WFPP policies.

FAQ: Is crop insurance available for plant nursery businesses? Yes, the Nursery Commodity Insurance is available. 

FAQ: How is the insurance value determined for a Nursery Commodity Insurance policy? The Nursery Plant Inventory Value is provided by USDA’s Datascape software for pricing and grower’s current inventory and pricelist.


FAQ: Can I qualify for a Nursery Commodity Insurance policy if I am a retail nursery? Yes, as long as 50% or more of your annual sales are from wholesale sales.

FAQ: What other type of crop insurance can I apply for in Hawai’i? “Underlining Policies” are crop insurance policies that can ‘stand alone’ Producers may apply for Macadamia nut, coffee, banana or papaya. These coverages are based on an approved yield, from the Growers Yield History or USDA Assigned Yields.  




Drew Smthye

Wraith, Scarlett & Randolph Insurance Services, Inc.
https://www.wsrins.com
530-662-9181
info@wsrins.com

Bonnie Lind
Lind Insurance Services
https://lindinsuranceservices.com
888-276-7728 toll-free
888-708-1875 toll-free fax

Tracy Adams
Adams & Associates
https://www.adamsassociatesinsurance.com
808-757-9464

Robert Yamane
Pyramid Insurance
robert.yamane@pyramidins.com
https://www.pyramidins.com
808-527-7667

Bradley Johnson
EastCo Group
brad@eastcogroup.com
https://www.eastcogroup.com
719-342-5862
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