March 15, 2019

BFR Definition Changes for WFRP – 2019 and Succeeding Crop Years

RMA released Managers Bulletin MGR-19-004 on March 12, 2019 altering the definition of Beginning Farmer or Rancher (BFR) for purposes of the Whole-Farm Revenue Protection (WFRP) plan of insurance for the 2019 and succeeding policy years.

 

Action

The following definition of BFR applies to all WFRP policyholders or new policyholders with sales closing dates after December 20, 2018:

A farmer or rancher who has not actively operated and managed a farm or ranch with a bona fide insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than 10 crop years.

This new definition is applicable to any use of the term BFR within the 2019 WFRP Pilot Policy (19-0076) and Handbook (FCIC – 18160) for sales closing dates after December 20, 2019. The definition will also be applicable to the procedures within the 2019 General Standards Handbook used to determine BFR eligibility for the purposes of WFRP.

Additionally, the statements required as a part of Exhibit 19 in the 2019 Document and Supplemental Standards Handbook (FCIC 24040) for the BFR Application, item 4A, should read as follows:

“As provided by me on this form, I certify that I have not had an interest in any crop(s) or livestock for more than 5 crop years (10 years for WFRP) …,”

I understand that any inaccurate certification or BFR benefits beyond 5 crop years (10 years for WFRP)…

 

If you have any questions about these changes and implications, please contact your Hudson Crop Insurance Specialist or Regional Sales Manager.

 

Additional Resources

BULLETIN MGR-19-004

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