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Risk Management
Risk management overview
Adjusted Gross Revenue insurance
More information
Resources
Risk management overview
ODA Risk Management - sprinklers in a field.
 
 
"Volatility in milk and grain markets have probably never been greater. That volatility will create opportunity. But, you can go from the best year you ever had to the worst year to be best year and back.
 
The peaks will be higher and the valleys will be lower. So you have to have strategies and then execute them to maximize profits on the upside and minimize losses in down years."
 
-Dr. David Kohl
Agricultural economist
 
 
 
Every agricultural operation needs a good risk management plan. Agricultural producers face many risks everyday and using strategies to mitigate those risks is the best way to keep agriculture viable in Oregon.
 
The Oregon Department of Agriculture and the USDA's Risk Management Agency are conducting a partnership to increase visibility and understanding of the Adjusted Gross Revenue (AGR) and Adjusted Gross Revenue-Lite (AGR-Lite) policies in Oregon and the Willamette Valley in particular.
Attend a "Farming is Risky Business: Managing Risk to Bolster the Bottom Line" Workshop at the following grower meetings or call the department to schedule a presentation for your group.

Adjusted Gross Revenue insurance
 
Willamette Valley growers produce a wide variety of specialty crops, many of which are not covered under traditional federal crop insurance policies. In fact, less than 15 percent of Oregon commodities are covered by specific federal multi-peril commodity policies. AGR and AGR-Lite offer specialty crop producers options for mitigating against market and production risks in one whole-farm package.
 

Adjusted Gross Revenue (AGR) and Adjusted Gross Revenue-Lite
AGR and AGR-Lite policies offer whole-farm revenue protection against low revenue due to unavoidable natural disasters and market fluctuations that affect income during the insurance year.
 
Protection levels are based on producer's five-year historical IRS farm income information and annual farm reports.

AGR and AGR-Lite offers protection for most farm-raised crops, animals, and animal products.
 
Some features that distinguish the AGR programs from other forms of crop insurance are:
  1. They cover otherwise uninsurable crops.
  2. They account for dairy, aquaculture and other high value varieties at real price levels.
  3. They protect organic and direct marketing production at realistic prices.
  4. Premiums are usually lower than other insurance plans and premiums are reduced if coupled with other multiple-peril crop insurance (MPCI).
 
 AGR AGR-Lite
Maximum coverage
$6.5 million
$1 million
Coverage levels
65, 75, 80% of revenue
65, 75, 80% of revenue
Payment rates
75, 90% of guarantee
75, 90% of guarantee
Multi-peril coverage required
Yes
Optional
Deadline
1/31/08
3/15/08
 
Download a factsheet for more information on AGR (pdf, 26kB) or AGR-Lite (pdf, 28kB). If you have questions or would like to schedule a presentation for your grower group, please contact:
 
Brent Searle
 Lindsay Benson
bsearle@oda.state.or.us -OR-
lbenson@oda.state.or.us
503-986-4558  503-872-6600
 

More information
Finding an agent
Find an agent that sells AGR and AGR-Lite in your area. Click on the link below and select "Crop Insurance" from the drop-down menu and "Oregon" for your state. It will populate a list of agents that are authorized to sell crop insurance in your area. Remember: it is important to talk with your agent and make sure that he/she can answer the questions that you have and walk you through options that may be best for your particular operation.
http://www3.rma.usda.gov/apps/agents

When you meet with an agent, bring along the following information:
  1. Five (5) years of allowable income and expense data from your IRS 1040, Schedule F
  2. An annual farm report showing the intended revenue-producing commodities and their expected revenue.
  3. A commodity profile report for the previous two years for producers selecting higher coverage levels.
  4. Beginning inventories and accounting receivable.

Calculate your premium
You can calculate what your premium would be for AGR or AGR-Lite coverage before you even speak to an agent. You should have a list of crops you intend to plant for the insurance year as well as your income for the past six years. Create a username and password for yourself that will allow you to input that information and calculate a premium estimate for your operation.
http://www3.rma.usda.gov/apps/premcalc

Resources
Risk management
Find out about other federal crop insurance options available in your area. Take a look at the Oregon state crop insurance profile (pdf, 97 kB) to determine the availability for RMA's crop specific multi-peril policies in your area, or visit RMA's crop policies website - http://www.rma.usda.gov/policies.
USDA's Risk Management Agency - http://www.rma.usda.gov
 
National Ag Risk Education Library - http://www.agrisk.umn.edu
This online resource collects and catalogues thousands of risk management materials that help producers and agricultural professionals quickly locate information, tools, and assistance on specific risk management topics.

 
Page updated: September 02, 2008

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