Every agricultural operation -- regardless of size -- needs a good risk management plan. Agricultural producers face many risks every day, and using strategies to mitigate those risks is important to keeping agriculture viable in Oregon.
 
The Oregon Department of Agriculture and the USDA's Risk Management Agency conducted a partnership in 2007-09 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. This is one tool growers might consider for their risk management plan toolbox.
 
View a powerpoint (pdf format) "Farming is Risky Business."

 
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 35 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 a producer's five-year historical IRS Schedule F 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).

NOTE: AGR and AGR-Lite can be very complicated for operations that carry multi-year inventory, such as nursery and greenhouse operations.  

	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	January 31	March 15

 
Download a factsheet for more information on AGR (pdf, 26kB) or AGR-Lite (pdf, 28kB).
 
Watch a video of onion grower Greg Bennett talking about AGR.
 
View a ppt in pdf version about AGR, how to apply, what is covered and not, how to file a claim, and other topics presented by George Harris, Farm Credit Services Insurance agent.
 
View a ppt in pdf version on how AGR works, eligiblity, detailed example of fictional OR farm, presented by USDA/Risk Management Agency, Spokane Office.
 

Find 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

USDA's Risk Management Agency
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.
 
http://www.rma.usda.gov
 

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National Ag Risk Education Library
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.
 
http://www.agrisk.umn.edu

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NEW! Farm and Ranch Online Planning Tool
USDA's Risk Management Agency (RMA) has recently launched an online resource to aid farmers and ranchers in focusing on how to protect against downside risks, as well as how best to take advantage of upside opportunities in the market.
 
The new resource, a sub-site of the RMA website called Farm-Risk-Plans.USDA.gov, allows producers to complete a risk management checklist, identify their enterprise's strengths, weaknesses, opportunities, and threats, and explore a wealth of risk management
information.
 
The new resource features four modules: Risk Management Planning, Better Marketing Planning, New Enterprise Planning, and the Farm Planning Library. Each contains the best available information, consolidating resources from leading Land Grant Universities and
government agencies.
 
Building a Risk Management Plan: http://www.rma.usda.gov/pubs/1998/barmp/

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Progressive Farmer Magazine's Special Edition on Risk Management
Special publication of Progressive Farmer on Risk Management tools for the farm:
http://www.dtn.com/dtnag/promo/risk/index.cfm
 
Tips and Tactics for Dealing With:
 

• Swings In Input Costs - Fertilizer and fuel costs have dropped, but seed and herbicides will cost you more.
• Financing - Greater liquidity provides you with security and everage to negotiate better deals.
• Leases and Land Rents - A flex lease may be your tool to protect against wild swings in cash rents.
• Crop Prices - Markets offer clues that proven strategies may be back.
• Extreme Weather - Unpredictable weather is the new norm, putting your crops at higher risk.
• Production Practices - Learn how these growers are fine-tuning management and production practices to offset rising costs.
• Crop Insurance - New crop insurance options safeguard against fickle weather and volatile prices.
• Roller-Coaster Markets - Rapid changes in commodity prices are causing growers to alter their marketing plans.

ODA drought and disaster preparation and response Web site