What is AGR-Lite?
AGR-Lite is a whole-farm revenue protection package. Your agricultural commodity revenue is insured against low revenue due to unavoidable natural disasters and market fluctuations that affect your income for the insurance year. You can get AGR-Lite if your gross income from agricultural commodities is not greater than $2,051,282. AGR-Lite provides up to $1,000,000 in coverage, based on your five-year farm average revenue as reported to the IRS on Schedule F of Form 1040, and on your current year's farming plan.
AGR-Lite covers most farm-raised crops, animals, and animal products, including many commodities that are not covered individually under other insurance plans available in your county. AGR-Lite can be purchased as a stand-alone product, or with other crop insurance plans including Multi-Peril Crop Insurance. AGR-Lite and MPCI experts at Stallings can help you design the best insurance coverage package to fit within your budget and risk tolerance.
AGR-Lite is best for your operation if you:
- Need Whole Farm Insurance to protect your bottom line from economic loss.
- Want the security of umbrella protection over selected individual crop coverage.
- Have a diversified operation, or have operations including organic production and/or direct market production
- Product commodities not covered under traditional crop insurance policies available in your area.
Example Scenario:
Like most crop insurance policies, AGR-Lite has a coverage level and payment rate. You incur a loss when your eligible agricultural revenue falls below the coverage level percentage, and are paid the difference at the payment rate percentage.
For example, if you have an average adjusted gross revenue of $1,000,000, and qualify for the 80/90 coverage level, if your revenue falls below $800,000 (80% of $1,000,000), then you will be paid 90% of the revenue shortfall. If your revenue for the insurance year fell to $600,000:
$1,000,000 x 80% coverage level = $800,000 loss threshold.
$800,000 loss threshold - $600,000 actual revenue = $200,000 shortfall.
$200,000 shortfall x 90% payment rate = $180,000 indemnity payment.
Coverage Choices:
Coverage levels of 65%, 75%, and 80% are available, with payment rates of 75% and 90%. Coverage levels at 65% and 75% are open to all eligible producers, while coverage levels of 80% require that you produce a minimum of three (3) separate commodities as determined by the USDA Risk Management Agency. Because the policy maximum liability is capped at $1,000,000, your insured agricultural revenue must be below a certain threshold for each individual coverage level and payment rate:
| Coverage Level | Payment Rate | Maximum Revenue | And... |
|---|---|---|---|
| 65% | 75% | $2,051,282 | |
| 65% | 90% | $1,709,402 | |
| 75% | 75% | $1,777,778 | |
| 75% | 90% | $1,481,481 | |
| 80% | 75% | $1,666,667 | Produce at least 3 commodities |
| 80% | 90% | $1,388,889 | Produce at least 3 commodities |
What do I do?
The enrollment date for new AGR-Lite applicants is March 15. Fill out our Quote Request form today to get started, and a Stallings Crop Insurance agent will contact you to discuss AGR-Lite and other insurance products for your farming operation. Or, call or e-mail us right now!.
More Information:
USDA Risk Management Agency - AGR-Lite Fact Sheet
AGR-Lite Timeline:
- Sales Closing Date: March 15 is the enrollment date for new applicants, policy change and the cancellation dates for all policies.
- Year of Insurance: For the year of application you willnot be covered for any losses that occur earlier than 10 days after the company receives your properly completed application.
- Insurance Year: A calenar year if you file your taxes on a calendar year basis. A fiscal year if you file your taxes on a fiscal year basis.
- Revenue and Expenses Report Filing Deadline: March 15 for new applications. January 31 deadline applies for renewal policies to complete a farm report.
- Beginning Inventory Report Filing Deadline: Must be filed by the end of the firt month for calendar of fiscal year to correspond with insured's IRS tax year.
- Claims: Claims are settled after taxes are filed for the insurance year.
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