Adjusted Gross Revenue (AGR) is a non-traditional, whole farm risk management tool that uses a producer's historic Schedule F (or equivalent) form information as a base to provide a level of guaranteed revenue for the insurance period.

The Benefits

• An insurance net for multiple commodities in one insurance product.
• Protection during the insurance year against loss of revenue due to any unavoidable natural disaster or market flucutuations.
• Protection for agricultural commodities that currently do not have MPCI plans available.
• A producer's own Internal Revenue Services Schedule F (or equivalent) form to determine coverage.
• Methods within the policy for covering expanding and decreasing agricultural operations.

How it Works

• AGR uses a producer's tax information, then from the Schedule F (or equivalent form) an approved AGR is established using the five most recent tax years.
• It takes into account a producer's beginning and ending inventories.
• AGR protection is calculated by multiplying the approved adjusted gross revenue by the coverage level and payment rate selected on the Application.
• If the producer's adjusted income for the insured year is less than the approved AGR times the coverage level, you may receive a payment.

Coverage Level and Payment Rates

• 65% coverage level, 75% or 90% payment rate. (For the 90% payment rate a producer needs a minimum of two commodities with each contributing a certain percentage of revenue.)
• 75% coverage level, 75% or 90% payment rate. (A producer needs a minimum of two commodities with each contributing a certain percentage of revenue.)
• 80% coverage level, 75% or 90% payment rate. (A producer needs at least four commodities with each contributing a certain percentage of revenue.)

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