Coverages | Adjusted Gross Revenue (AGR) & AGR-Lite

Adjusted Gross Revenue (AGR)

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The Adjusted Gross Revenue program provides growers with protection against low farm revenue due to unavoidable causes. This program is a non-traditional insurance program which uses a grower's historic Schedule F tax form information as a base to provide a level of guaranteed revenue. AGR protection is calculated by multiplying the approved gross revenue times the percent coverage level and payment rate selected by the producer. The approved gross revenue is the lesser of the grower's 5-year average Schedule F allowable revenue or the expected revenue for the insurance year. The basic coverage level is 65/75 (65 percent coverage level and 75 percent payment rate) and is available to all growers. Higher levels of coverage are available to growers who qualify. Loss payments are triggered when adjusted gross revenue for the insured year is less than the approved gross revenue times the chosen percent coverage level.

AGR-Lite is also available in limited areas and is identical to AGR with the following exceptions:

• Maximum liability for any policy is $1,000,000
• Producers are eligible for this program regardless of the percentage of their income which is derived from animals or (including agriculture) animal byproducts (AGR limitation of 35% does not apply)
• Requirement to provide five years of IRS income tax records at the time of sale is eliminated (only required in the event of a claim)
• Not required to purchase a federally reinsured policy if 50% or more of insured’s income is derived from crops eligible for other federally reinsured crop programs
• and only the two most recent years of historical data is required to be provided on the Agricultural Commodity Profile report for higher levels of coverage (rather than five years for AGR).

Green states show availability of the AGR program. County availability varies.

Green states show availability of the AGR-LITE program. County availability varies.

11/29/04, 12/05, 11/06, 10/07, 8/08