1. Crop Insurance Options for Beginning & Diversified Farmers
Ag-Analytics.org

2. You might be wondering…
Why are you here?
What’s the deal with crop insurance?
How does crop insurance work?
Does it work any differently for beginning farmers?
How much does it cost?
Does it make sense for my farm?
How do I sign up?

3. Who are you and why are you here?
NY Crop Insurance and Risk Management Project
Part of USDA Risk Management Agency’s Targeted States Program to increase crop insurance outreach in states with low usage rates
Based at Cornell for the first time this year
In addition to outreach, also providing web tools to help farmers better understand crop insurance options

4. What’s the deal with crop insurance?
Agricultural economy is volatile
Crop insurance = safety net
Whole Farm Revenue Protection intended to level the playing field by making the safety net available and more suited to diversified growers

5. How does crop insurance work?
A bit like car insurance:
You pay a premium to buy a policy
If something bad happens, you file a claim
Indemnity payment helps make you whole

6. How does crop insurance work?
With Whole Farm Revenue Protection, you insure that you will take in a certain amount of revenue
Not yield, as in other crop insurance products
Not liability, as in the liability insurance that would help you settle a lawsuit
Not property, as in property insurance which would help you replace damaged stuff

7. How does crop insurance work?
With Whole Farm Revenue Protection:
You insure that your farm will make a certain amount of total projected revenue
If something outside your control (like weather or pests or market prices) prevents that, you file a claim
You get an indemnity payment to make up most of the lost revenue

8. How does crop insurance work?
By the numbers:
80% of the premium cost is subsidized (paid for by the government) at most coverage levels for WFRP*
Being more diversified gets you higher levels of coverage. If you produce ≥3 commodities*, you can insure up to 85% of your revenue
Covers up to $8.5 million in revenue
*Share of premium subsidized and coverage levels available are based on the RMA-calculated “eligible number of commodities” – each commodity you produce must make up a certain amount of your revenue to count as an “eligible commodity”

9. Does it work any differently for new farmers?
Yes! Beginning farmers receive special benefits:
May use 3 years of tax records instead of 5
In some cases can use records from other operations you managed
Extra 10% premium subsidy
“Beginning farmer” = ≤5 years of “insurable interest” in a farming operation

10. How much does it cost? Costs depend on:
Historical revenues
Projected revenue
Which crops you grow
Whether you are a beginning farmer
That’s where our web tools come in!
Let’s go through the tool

11. Does it make sense for my farm?
Only you can decide
Is it worth some money up front to guarantee a portion of your income?
Is the risk of a major crop failure great enough to justify the cost of insurance?
In 2015, for every $1 NY producers spent on WFRP crop insurance, they received $3.76 in indemnity payments on average

12. How do I sign up? Talk to an agent
Find a crop insurance agent at
The program is new, so bring your estimate
Crop insurance information, testimonials and other tools
Sign-up deadline: March 15

13. Cornell University delivers crop insurance education in New York State in partnership with the USDA Risk Management Agency.
Diversity and Inclusion are a part of Cornell University's heritage. We are an employer and educator recognized for valuing AA/EEO, Protected Veterans, and Individuals with Disabilities.

14. Jennifer Ifft