One Method to Manage Risk
Posted: November 30, 2012
Farm income can be uncertain. Consider all your risk management tools.
Open Season for Farm Revenue Insurance in Connecticut, Delaware, Maine, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont and Virginia.
Raleigh, North Carolina, November 29, 2012--USDA’s Risk Management Agency (RMA) announces Adjusted Gross Revenue (AGR) insurance for farmers and ranchers is again being offered in selected counties of the above states for 2013. The application deadline is January 31, 2013. Current AGR policyholders also have until January 31, 2013, to make any changes to existing contracts. AGR provides whole farm income protection under an umbrella-type policy that covers income from all crops and some livestock, provided the income from livestock and livestock products does not exceed 35 percent of total farm income. Unlike traditional crop insurance guarantees based on yields, AGR provides a guarantee against a significant decline in overall farm income from the average of the most recent five years (2007 – 2011). As a result of substantial premium subsidies provided by the USDA, AGR can be a very affordable way to guarantee an income flow from your farm operation.
In addition, a similar product called AGR-Lite, which covers livestock and has a limitation of $1,000,000 in coverage. AGR-Lite is available in all counties for the states listed above for 2013. The sales closing date for new AGR-Lite contracts is March 15, 2013. Current AGR-Lite policyholders also have until January 31, 2013, to make any changes to existing contracts. Farmers and ranchers are strongly urged to contact a local crop insurance agent, as soon as possible, for more information and premium quotes for both products.
Farmers and ranchers may check the Risk Management Agency website for a list of crop insurance agents.