Revenue Crop Protection Available In Six Pa. Counties
HARRISBURG (Dauphin
Co.) Diversified fanners in six
Pennsylvania counties are now
eligible for an innovative whole
farm insurance revenue insur
ance pilot program called the
Adjusted Gross Revenue Crop
Insurance Program.
This new crop insurance is
available in Berks, Carbon, Lack
awanna, Lehigh, Monroe, and
Northampton counties for the
2001 insurance year, according
to John Berry, agricultural mar
keting agent.
“The whole farm insurance
should work well for Pennsylva
nia’s family farms that grow
multiple crops. Many of these di
versified producers have few op
tions under traditional crop in
surance programs,” said Berry.
The adjusted gross revenue in
surance plan provides insurance
based on the lesser of the individ
ual producer’s previous five-year
average Schedule F tax informa
tion or the expected revenue for
the insurance year. This single
insurance product covers all agri
cultural commodities produced
by the policyholder. Expanding
the whole farm pilot program
will provide more experience in
insuring whole farm income
throughout the U.S.
A listing of crop insurance
agents is available at local Farm
Service Agency offices and
USDA Service Centers. Sales
closing date for AGR is Jan. 31,
2001.
The Adjusted Gross Revenue
(AGR) insurance plan is a non
traditional whole farm risk man
agement tool. The AGR concept
uses a producer’s historic Sched
ule F tax form information as a
base to provide a level of guaran
teed revenue.
AGR:
• Provides an insurance safety
net for multiple agricultural
commodities in one insurance
product.
• Establishes a common de
nominator for commodity pro
duction cash receipts.
• Makes simple and straight
forward use of income tax forms.
• Reinforces program credita
bility by using Internal Revenue
Service tax forms and regula
tions.
The AGR product provides
the producer protection against
low farm revenue due to un
avoidable causes. Covered farm
revenue is income from agricul
tural commodities reported on
the Schedule F tax form, includ
ing incidental amounts of income
from animals and animal prod
ucts and aquaculture reared in a
controlled environment. Inciden
tal livestock income represents
the crop production value fed to
livestock.
AGR protection is calculated
by multiplying the approved
gross revenue times the percent
coverage level and payment rate
selected by the producer. The ap
proved gross revenue is the
smaller of the average of the pro
ducer’s prior five years of Sched
ule F tax information. The aver
age gross revenue can be
adjusted for expanded operations
or expected revenue for the in
surance year.
For example, a producer with
a $lOO,OOO approved gross reve
nue who chose 80/75 coverage
would have $60,000 protection
($lOO,OOO x 80 percent coverage
x 75 percent payment).
Loss payments are triggered
when the adjusted gross income
for the insured year is less than
the loss inception point. The loss
inception point is calculated by
multiplying the approved gross
revenue by the chosen percent
coverage (65, 75, or 80). Once a
loss is triggered, the payment
rate is 75 percent of the revenue
shortfall. Loss payment for this
example would trigger when the
income for the insurance year is
below $BO,OOO ($lOO,OOO x 80
percent coverage).
Chesapeake Bay States Sign
Animal Waste Transport Agreement
ANNAPOLIS, Md. Virginia,
Maryland and Pennsylvania
have signed an agreement to vol
untarily monitor the use of ani
mal waste transferred between
the three Chesapeake Bay Pro
gram states. The proper use of
manure and other nutrient
sources is one of the leading
goals to curb agricultural im
pacts to the Chesapeake Bay and
its tributaries.
“The transport of animal
waste for fertilizer or other uses
takes on added importance as we
continue efforts to restore water
quality in the Bay and the rivers
that feed it,” said David G.
Brickley, director of the Virginia
Department of Conservation and
Recreation. “This memorandum
of understanding helps to ensure
these wastes are used to effec
tively add nutrients to croplands,
and not to nearby waters.”
Brickley chaired the Chesa-
Lancaster Farming, Saturday. January 6, 2001-A35
Producer eligibility require
ments include:
• Filed five consecutive years
of Schedule F tax forms. For
2000, the 1994-1998 tax years.
• Produces eligible commodi
ties.
• U.S. citizen or resident.
• Files calendar year farm tax
return.
• No more than 50 percent of
allowable income is earned from
purchase and resale of agricul
tural commodities.
• No more than 35 percent of
allowable income is from animals
peake Bay Program Task Force land application to ensure proper
that drafted the MOU. rates and timings of applications
Nonpoint source pollution, in- regardless of destination,
eluding the runoff of animal • All transport incentive pro
waste, is the leading source of the grams must adhere to the nutri
°r r a l | >un^anc , e n ‘Jr°i en ent management practices of the
phosphorus entering the Bay and receivi as a condition of
its tnbutanes. Too much of these .. . .. m
nutrients in the water lead to a ™ g the “icentive, or may
shortage of oxygen, which nega- 0311 foT t additional requirements
tively impacts living resources as P art a contractual agree
and their habitats in the Bay wa- ment
tershed. * States to annually share
“Our past success in nutrient summary data on the quantity
management planning has in- and destination of animal waste
creased the need to find alterna- transferred out of state as the re
lives for manure,” said Mary- suit of a transport incentive pro
land’s MOU signatory Dr. Henry gram.
A. Virts, Maryland Agriculture The MOU also creates a Ches-
Secretary. apeake Bay Program Animal
“Transport to farms where Waste Distribution and Use
manure can provide a direct ben- Technology Task Force,
efit is proving feasible. As with „ We see this force a
!"I S .Lr a v y key to future cooperative ef
voluntary cooperative action is ,f. „ „
the key to coordinating these f orts ’ Pennsylvania Secre
transportation efforts.” JfT of l A^“ lture S*™™ l E -
The MOU is the result of a di- Ha y es ’ Jr - This wIU not
rective signed by the Chesapeake only work to promote coopera-
Executive Council which is com- don but to share technological
prised of the governors of the progress and discuss emerging is
three states, the District of Co- sues as well.”
lumbia Mayor, the U.S. Environ- For more information about
mental Protection Agency Ad- the Interstate Animal Waste Dis
ministrator and the Chesapeake tribution Memorandum of Un-
Bay Commission Chairman. derstanding, visit the Chesa
“All three have success- peake Bay Program website at
fill programs working with farm- http://www.chesapeakebay.net/
ers to properly use animal wastes p ress
and other fertilizers/’ said Vir- The Chesapeake B p,
szfszui w“ r : j- -r 8 F B h ay water r
“For example, each state devel- a Partnership the f
oped new processes that recycle P* lstr ‘ ct Columbia, State of
animal waste into energy and Maryland, Commonwealth of
valuable commercial fertilizer Pennsylvania, Commonwealth of
products. This MOU strengthens Virginia, the U.S. Environmental
these programs and better coor- Protection Agency representing
dinates them with all Bay the federal government, the
states.” Woodley signed the Chesapeake Bay Commission,
agreement for Virginia. and participating citizen advi-
The new MOU calls for: sory groups.
State pro
grams overseeing v ~
a " imal w “ ,e for ► PAINTING i
All Types 1
r Interior/Exterior j
lncluding Aerial Work \
Specialists in Sand Blasting and
w Spray Painting Farm Buildings,
L Feed Mills, Roofs, Tanks, Etc.
k Also Roof Coating • Water Blasting
L • Waterproofing on Stone and A
W Brick Buildings j
[ Fisher’s Painting i
4056A Newport Rd.
and animal products.
• Must have Multi Peril Crop
Insurance (MPCI) when more
than 50 percent of allowable in
come is from insurance crops.
This summary is for general il
lustration only. Please contact a
private insurance agent to learn
more details about AGR and
other crop insurance products.
Fisher’s Painting
4056 A Newport Rd.
Kinzers, PA 17535
On Rt. 772 Across From
Pequea Valley School
717'768'3239
►
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