On Overview of AGR-Lite Dr. Laurence M. Crane National Crop Insurance Services Dr. Laurence M. Crane National Crop Insurance Services Funding was provided to National Crop Insurance Services (NCIS) through a competitively awarded Cooperative Agreement from the USDA Risk Management Agency.

What and where is AGR-Lite? A whole farm gross revenue insurance that: oCovers crop commodities, animals, and animal products. oProtects against a loss of production, quality and market price. oNote: Most USDA government payments are excluded. A whole farm gross revenue insurance that: oCovers crop commodities, animals, and animal products. oProtects against a loss of production, quality and market price. oNote: Most USDA government payments are excluded.

How does AGR-Lite work? AGR-Lite provides an individualized revenue guarantee based on the producer’s 5-year farm average revenue from 1040 Schedule F (or similar forms) and the Annual Farm Report for the current year.

Why might I need AGR-Lite? Is a stand alone policy Can be used as umbrella over selected individual crop coverages Works for producers of organic, high value varieties, dairy, aquaculture and livestock. Recognizes local market prices that may be higher than national prices. Covers nursery, greenhouse, milk, wool, honey, aquaculture, etc. Protects against low prices. Is a stand alone policy Can be used as umbrella over selected individual crop coverages Works for producers of organic, high value varieties, dairy, aquaculture and livestock. Recognizes local market prices that may be higher than national prices. Covers nursery, greenhouse, milk, wool, honey, aquaculture, etc. Protects against low prices.

Why might I need AGR-Lite? Protects direct marketed production at realistic prices. It gives individual protection based on your yield, quality and price history. Low yields and poor quality are adjusted based on the market value. Covers otherwise uninsurable crops. Record keeping is simple. Premium is usually lower than other insurance plans; premium discounts result when used along with MPCI. Protects direct marketed production at realistic prices. It gives individual protection based on your yield, quality and price history. Low yields and poor quality are adjusted based on the market value. Covers otherwise uninsurable crops. Record keeping is simple. Premium is usually lower than other insurance plans; premium discounts result when used along with MPCI.

What is covered by AGR-Lite? Natural disasters including unavoidable damage from insects, disease, wildlife Failure of irrigation water supply, fire, earthquake, volcanic eruption Market fluctuation Natural disasters including unavoidable damage from insects, disease, wildlife Failure of irrigation water supply, fire, earthquake, volcanic eruption Market fluctuation

Do I qualify for AGR-Lite?  1. I am a U.S. citizen or a legal resident.  2. I file a calendar year or fiscal year tax return which includes agricultural commodities.  3. I have IRS tax forms for the previous 5 years that were filed for the same entity.  4. The adjusted gross income for my operation for the current year is projected at less than $2,051,282.  5. No more than 50% of my total revenue comes from commodities purchased for resale as shown on the Annual Farm Report.  6. No more than 83.35% of my total revenue comes from potatoes.  1. I am a U.S. citizen or a legal resident.  2. I file a calendar year or fiscal year tax return which includes agricultural commodities.  3. I have IRS tax forms for the previous 5 years that were filed for the same entity.  4. The adjusted gross income for my operation for the current year is projected at less than $2,051,282.  5. No more than 50% of my total revenue comes from commodities purchased for resale as shown on the Annual Farm Report.  6. No more than 83.35% of my total revenue comes from potatoes.

Does AGR-Lite fit my operation? Have no more than $2,051,282 in approved gross income; Farm crops or animals or both; Are looking for a viable individualized revenue protection option as part of a risk management plan; Need crop insurance to help secure a loan; Guarantee a fixed amount of guaranteed income; Farm crops not insured by traditional crop insurance products; and/or, Produce high value crops and desire protection based on such values. Have no more than $2,051,282 in approved gross income; Farm crops or animals or both; Are looking for a viable individualized revenue protection option as part of a risk management plan; Need crop insurance to help secure a loan; Guarantee a fixed amount of guaranteed income; Farm crops not insured by traditional crop insurance products; and/or, Produce high value crops and desire protection based on such values.

How does the number of crops grown affect my coverage and cost?  More crops = lower premium rates Premium rates are linked to the number of commodities that you produce on your farm. The more diversified your farm, the more the liability is dispersed over the different commodities that you produce. Therefore, diversified farming operations have lower risk and therefore lower premium.  More crops = lower premium rates Premium rates are linked to the number of commodities that you produce on your farm. The more diversified your farm, the more the liability is dispersed over the different commodities that you produce. Therefore, diversified farming operations have lower risk and therefore lower premium.

What if one or more of my crops are insurable with regular crop insurance? You may choose to insure your crops under one or both types of coverage. For example, if insured under MPCI and AGR-Lite: –The AGR-Lite premium will be reduced to eliminate paying premiums twice for overlapping protection. –Income generated from MPCI is considered revenue to count for AGR-Lite. –You may not have both AGR and AGR-Lite coverage. You may choose to insure your crops under one or both types of coverage. For example, if insured under MPCI and AGR-Lite: –The AGR-Lite premium will be reduced to eliminate paying premiums twice for overlapping protection. –Income generated from MPCI is considered revenue to count for AGR-Lite. –You may not have both AGR and AGR-Lite coverage.

What coverage level is right for me? Ask yourself: –For what coverage levels do you qualify? –How much can you afford to lose? –What makes best financial sense? Ask yourself: –For what coverage levels do you qualify? –How much can you afford to lose? –What makes best financial sense?

What part of my income is allowed by AGR-Lite? Income that is allowed by AGR-Lite is found on the Schedule F form. (Lines 3, 4, 5b, 7a, 7c, and 10)

How do I calculate my approved Adjusted Gross Revenue? To estimate your allowable income, refer to Schedule F of your Federal income tax records. Your allowable income for the year is equal to the sum of the qualifying amounts found on lines 3, 4, 5b, 7a, 7c, and 10 of the Schedule F form.

How do I calculate my approved Adjusted Gross Revenue? Calculate the allowable income for each year in your five-year history. For the 2008 insurance year, use your Schedule F forms from the insurance years 2002 through Schedule F Line 3 Line 4 Line 5b Line 7a Line 7c Line Total$ -

How do I calculate my approved Adjusted Gross Revenue? AGR-Lite uses a producer’s 5-year historical farm average revenue reported on the IRS 1040 Schedule F and an Annual Farm Report as a basis to provide a level of guaranteed revenue for the insurance period..

How do I calculate my approved Adjusted Gross Revenue? AGR-Lite uses a producer’s 5-year historical farm average revenue reported on the IRS 1040 Schedule F and an Annual Farm Report as a basis to provide a level of guaranteed revenue for the insurance period..

How much will it cost me? Premium is subsidized by the government: –48% subsidy at the 80% level. –55% subsidy at the 75% level. –59% subsidy at the 65% level. Visit RMA’s premium calculation web page at Premium is subsidized by the government: –48% subsidy at the 80% level. –55% subsidy at the 75% level. –59% subsidy at the 65% level. Visit RMA’s premium calculation web page at

How do I get coverage and who can help me? Visit a crop insurance agent. Discuss coverage options with and get help from an agent. Complete and submit an application to an agent. Visit a crop insurance agent. Discuss coverage options with and get help from an agent. Complete and submit an application to an agent.

What should I take with me when I meet with a crop insurance agent? IRS 1040 Schedule F forms, schedule C or other tax forms that reflect sales and expenses for agricultural commodities for the previous 5 years. Proposed plan of operation for the upcoming insurance year. If you choose 75% or 80% coverage, a commodity profile report for previous 2 years. If applicable, beginning inventories, accounts receivable, or prepaid purchases. IRS 1040 Schedule F forms, schedule C or other tax forms that reflect sales and expenses for agricultural commodities for the previous 5 years. Proposed plan of operation for the upcoming insurance year. If you choose 75% or 80% coverage, a commodity profile report for previous 2 years. If applicable, beginning inventories, accounts receivable, or prepaid purchases.

Finding An Agent Ask other growers for recommendation. Check with insurance agency where you purchase other types of insurance. Go to Crop Insurance Company Websites Check with farm organizations you have a relationship with. Use the USDA Risk Management Agency’s Web site’s “Agent Locator.” Ask other growers for recommendation. Check with insurance agency where you purchase other types of insurance. Go to Crop Insurance Company Websites Check with farm organizations you have a relationship with. Use the USDA Risk Management Agency’s Web site’s “Agent Locator.”

Crop Insurance Providers In Rhode Island in ARMtech Insurance Services Rain and Hail L.L.C Rural Community Insurance Services ARMtech Insurance Services Rain and Hail L.L.C Rural Community Insurance Services

Crops Insurable in Rhode Island COUNTY ADJUSTED GROSS REVENUE* APPLES CORN CRANBERRIESNURSERYPEACHESPOTATOES AGR AGR- LiteCorn Fresh Market Bristol(P) ,4450 Kent(P) , Newport(P) , Providence(P) , Washington(P) , (APH) Actual Production History 44 (CRC) Crop Revenue Coverage 50 (DO) Dollar Amount of Insurance 86 (GYC) Grower Yield Certification 61 (AGR-L) Adjusted Gross Revenue Light 63 (AGR) Adjusted Gross Revenue (P) Pilot program *AGR is a plan of insurance and not a crop. Under AGR many crops (including livestock) are insurable that are not insurable under any other plan of insurance.