FARM FUNDING
Beginning/Veteran Farmer & Rancher Benefits for Crop Insurance
Veterans — thank you for your service!
Beginning farmers — thank you for becoming the 1% of the U.S. population who help feed the world!
About the BFR & VFR Programs
Beginning and veteran farmers are eligible for special rules and provisions under the federal crop insurance program. Some of the benefits include exemption from paying the administrative fee for catastrophic and additional coverage level policies, additional premium subsidy resulting in lower grower premium, and other policy adjustments. There are specific qualification requirements for each program. Some of the benefits are outlined below. To learn more or to see how the programs could work for you, contact a Crop Growers agent.
BFR & VFR Crop Insurance Benefits
$0 administrative fees
All administrative fees are dropped for any coverage level.
Additional 10% premium subsidy
Must be buy-up coverage; does not apply to catastrophic (CAT) coverage.
Extended production history
Use of production history of farming operation that you were previously involved in the decision-making or physical activities. The operation must allow you access to use these records.
Increased substitute yield adjustment
Replace a low yield due to an insured cause of loss, from 60% to 80% of the applicable T-yield.
BFR & VFR Crop Insurance Qualifications
- Must file as individual, or all members must meet all BFR/VFR benefits.
- Veteran (who has served on active duty in the armed forces and was discharged other than dishonorable) must first obtain status as a veteran during the most recent five-year period.
- Must not have actively operated and managed a farm or ranch anywhere with an insurable interest in any crop or livestock for more than five crop years. This includes an insurable interest as an individual or as a substantial beneficial interest holder (10% or more) in another person who has an insurable interest in any crop or livestock.
- May exclude a crops year's insurable interest if you were under the age of 18, enrolled in post-secondary studies (not to exceed five crop years) or on active duty in the U.S. military.
- Must apply by the sales closing date.
Beginning/Veteran Farmer & Rancher Benefits FAQs
If you haven't operated or managed a farm or you haven't had an insurable interest in a crop or livestock product for more than 5 crop years, you could qualify for BFR benefits. The 5 crop years:
- Includes an insurable interest as an individual or as a substantial beneficial interest holder (10% or more) in another person who has an insurable interest in any crop or livestock; and
- Excludes crop years when the BFR was under the age 18, enrolled in post-secondary studies (not to exceed 5 crop years) or on active duty in the US military.
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