Adjusted Gross Revenue (AGR) provides overall coverage against inevitable causes of loss due to weather and price. The whole farm is considered one unit and all commodities are in this one unit. All AGR policyholders are eligible for the basic coverage of a 65% coverage level and 75% payment rate (65/75). If additional eligibility and reporting requirements are met, there are also coverage levels of 65/90, 75/75, 75/90, 80/75 and 85/90. Your guarantee is the lesser of your projected income for the insurance year or a 5-year average of Allowable Schedule F income (including any adjustments that may apply) on either a calendar or fiscal year basis. This guarantee is then multiplied by your coverage level to obtain your revenue guarantee.

Revenue to count is an inventory of revenue earned. This includes: the sales of animals and other agricultural commodities purchased for resale less the cost or other basis of such animals or other commodities (For example, apples were purchased for $400 and then sold for $500. Revenue to count equals $100.); the sales of animals, produce, grains & other agricultural commodities raised; the taxable amount of any cooperative distributions; Commodity Credit Corporation loans reported under election; the taxable amount of Commodity Credit Corporation loans forfeited; crop insurance proceeds; other income, including income from bartering, payments from buyers of agricultural commodities for bypassed acreage, and diversion payments; and the value of changes to commodity inventories and receivables (accrual adjustments).

If a loss in revenue occurs during the insurance year due to an unavoidable peril that has been specified as a plausible cause of loss, a loss payment could be issued. The payment is calculated by multiplying the approved AGR (adjusted if allowable expenses fall below 70% of the average allowable expenses) by the level of coverage selected; subtracting the revenue to count (including any applicable accrual adjustments) from this result, and multiplying this result with the payment rate.

Certain eligibility requirements must be met before AGR coverage is granted. To be eligible, growers must:

Farm and receive income from agricultural commodities primarily within Pilot Counties;
Be a U.S. citizen;
Be permanently established in the United States and file specified tax forms if a corporation/partnership/trust;
Have filed a tax return for each year (fiscal or calendar tax year) of AGR history and expense history;
Have supporting records;
Not have more than 50% of allowable income for the insurance year derived from a combination of production of insurable crops, animals, and animal products unless such commodities are insured under other available insurance offered under authority of the Federal Crop Insurance Act; and
Not have more than 35% of allowable income for the insurance year derived from animals & animal products.

How it works:

Projected income from the Annual Farm Report $270,000

5-year average of Allowable Schedule F Income $250,000

5-year average of Allowable Schedule F Expenses $190,000

Coverage Level and Payment Rate Selected 80%/75%

INSURANCE YEAR SCHEDULE F

Allowable Income $130,000

Accrual Adjustment (value of change in inventory and receivables) $2,000

Allowable Expenses $130,000

Approved AGR (lower of Projected Income or 5-year Average Income) $250,000

Adjusted AGR {$250,000 x [1 - [0.70 - ($130,000/$190,000)]]} $245,000

Revenue Guarantee ($245,000 x 80%) $196,000

Revenue to Count ($130,000 + $2,000) $132,000

Loss
$64,000

Loss Payment ($64,000 x 75%) $48,000

Certain supporting documentation must accompany an application on or before the sales closing date (January 31 for both calendar and fiscal years). These include:

Identification of the person applying for insurance,
The coverage level that is selected; and
A farm report that includes:
1. Income and expense history
2. Copies of Schedule F tax forms for each of the 5 years used to determine AGR history;
3. Estimate of income that is expected to be received on a commodity basis for the covered insurance year; and
4. Any changes in commodities intended to be produced, size of the farming operation, share, market conditions or anything else that may cause the allowable income to be reduced from previous levels.

Also, for 75% or 80% levels of coverage (with either price election), by commodity, an accounting of acres (or quantities), location, production practices and marketing methods for each year of AGR history must be submitted.

Availability:

Oregon: Benton, Clackamas, Columbia, Lane, Linn, Malhuer, Marion, Multnomah, Polk, Washington and Yamhill Counties

Washington: Adams, Benton, Chelan, Douglas, Franklin, Grant, Kittitas, Okanogan, Walla Walla and Yakima Counties

Projected income from the Annual Farm Report	$270,000
5-year average of Allowable Schedule F Income	$250,000
5-year average of Allowable Schedule F Expenses	$190,000
Coverage Level and Payment Rate Selected	80%/75%
INSURANCE YEAR SCHEDULE F
Allowable Income	$130,000
Accrual Adjustment (value of change in inventory and receivables)	$2,000
Allowable Expenses	$130,000
Approved AGR (lower of Projected Income or 5-year Average Income)	$250,000
Adjusted AGR {$250,000 x [1 - [0.70 - ($130,000/$190,000)]]}	$245,000
Revenue Guarantee ($245,000 x 80%)	$196,000
Revenue to Count ($130,000 + $2,000)	$132,000
Loss	$64,000
Loss Payment ($64,000 x 75%)	$48,000