Risk Management Programs - Revenue Insurance Publications
Adjusted Gross Revenue (AGR) and Adjusted Gross Revenue-Lite (AGR-Lite) are whole-farm revenue insurance programs available to New Hampshire farmers on a pilot basis. These programs protect farmers against loss of farm revenue due to unavoidable natural disasters and market fluctuations. Covered revenue includes income from most crops and commodities. The guaranteed revenue is based on past years’ tax returns. At application, the farmer selects the level of coverage desired. AGR-Lite is a streamlined version of AGR with fewer application requirements and no restrictions on the portion of insurable revenue from livestock and livestock products. However, a drawback of AGR-Lite is the lower maximum farm revenue which is covered under the policy.
Launched in 2008, the LGM – Dairy program provides dairy producers with protection against declining gross margin on milk production. Gross margin is defined as the market value of milk produced minus feed costs. Futures prices on CME for a specific time period on milk, and CBOT for corn and soybean meal are used to compute the gross margin. The program covers the difference between the computed (guaranteed or expected) gross margin and the actual gross margin. If the actual gross margin is smaller than the expected gross margin, the LGM-Dairy program makes a payment at the end of the period. The LGM-Dairy insurance program can be purchased any of the 12 months of the year for as short as one month or for the whole insurance period of 10 months. (The first few months after purchasing the insurance are not eligible for coverage.)
Revenue Insurance Fact Sheets:
