Adjusted Gross Revenue-AGR

RMA joined with several producer associations, Extension specialists and reinsured company personnel to investigate the feasibility of developing a non-traditional whole farm insurance concept. This concept uses a producer's historic Schedule F tax form information as a base to provide a level of guaranteed revenue for the insurance period.

 

The Adjusted Gross Revenue (AGR) product provides an insured producer protection against low revenue due to unavoidable causes. Covered farm revenue includes income from crops and agricultural commodities, including incidental livestock. The AGR protection is calculated using the prior five years of Schedule F tax information the producer filed with the Internal Revenue Service (IRS). The AGR protection is calculated by multiplying the average adjusted gross revenue by the coverage level and payment rate percentage selected by the producer. An insured loss does not exist until the adjusted gross revenue for the insurance year is less than the amount corresponding to the product of the approved adjusted gross revenue times the selected coverage level. Once a loss is triggered, the insured is paid a portion of the revenue shortfall (payment rate).

Here at Jackson & Associates we are excited to offer this product.  Please give us a call today at 559-897-5831 for further information and the opportunity to meet with you to discuss this coverage product in greater detail.