BFR - Beginning Farmer and Rancher

  • Overview

    • If you have not actively operated and managed a farm or ranch anywhere, with an insurable interest in any crop or livestock for more than 5 crop years, excluding years you were under the age of 18, or enrolled in post-secondary studies, or in active duty in the U.S. military, then you may be eligible to qualify for several benefits designed to help you as you start your operation.

  • Benefits

    • Receive an additional 10 percentage points of premium subsidy for additional coverage policies like RP (Revenue Protection) that already have premium subsidy.

    • Exemption from paying the standard crop insurance Admin fees (ex. $30 per crop per county).

    • An increase in the substitute Yield Adjustment (YA), which allows you to replace a low yield due to an insured cause of loss, from 60 to 80 percent of the applicable T-Yield.

    • Ability to use the production history of farming operations that you were previously involved in the decision making or physical activities.  This benefit, if you qualify, often times allows you to establish a much higher APH, or crop insurance yield guarantee, compared to just using 65% to 100% of the T-Yield.

    • The most number of years that you can receive benefits is 5 years, regardless of exclusions.

  • Qualification

    • You must apply for BFR benefits by sales closing date (SCD) - March 15th for corn and soybeans.

    • You must not have actively operated and managed a farm or ranch anywhere, with an insurable interest in any crop or livestock for more than 5 crop years, excluding years you were under the age of 18, or enrolled in post-secondary studies, or in active duty in the U.S. military.

    • An insurable interest is defined as a 10% or more interest / ownership in any crop or livestock (ex. being an SBI in another person such as a spouse or in an entity like an LLC counts as an insurable interest)

    • For more information, view the RMA's fact sheet by clicking on the LINK below:

New Producer

  • Overview

    • If you have not produced a given crop such as corn or soybeans in the county for more than 2 years, you are eligible to receive 100% of the T-Yield for your crop insurance guarantee for that crop in the years you do not have production history.

    • For example, if you have never produced the crop, you would receive 4 years of 100% of the T-Yield to fill your crop insurance database which requires a minimum of 4 years of yields.  However, if you do not qualify for New Producer, than in that case you would only receive 65% of the T-Yield.

  • Qualification

    • Producer has not produced the crop in the county for more than 2 APH crop years, ever.

    • Producer was not a member of another insured entity as a SBI (Substantial Beneficial Interest) which produced the insured crop in the county for more than 2 APH crop years.

    • Any SBI holders for the policy, on which New Producer status is requested, have also not produced the insured crop in the county for more than 2 APH crop years.

    • For any years, 1 or 2, that the crop was produced in the county, the actual production and yield records must be used.

Want to Discuss or have Questions?

  • If you would like to discuss, get a quote or have questions, please contact us - call, text or email.