The Adjusted Gross Revenue (AGR) program or AGR-Lite program offer a relatively inexpensive way to insure a wide variety of crops against natural disaster or loss of market. These programs are provided through commercial insurance carriers, but the cost is low because the premiums are heavily subsidized by USDA Risk Management Agency. The program is unique among crop insurance in that it insures income rather than crop production levels.

Most Vermont vegetable and berry farmers will be eligible for the program. Some requirements include: five consecutive years of filing Schedule F tax forms; no more than 35% of income from animal agriculture; no more than 50% of income from purchase and re-sale of agricultural products.

Your coverage is based on your average gross income reported for the last 5 years. You can choose among 3 levels of coverage that protect against your income dropping below  65%, 75% or 80% of your average gross. Then you select either a 75% or 90% payment rate on the loss. Obviously, the more of your gross income you choose to insure, the higher the premium.

To help you understand the program here is an example, but remember, each farm will be different. Farmer Vern's main crops are summer and winter squash, strawberries, sweet corn, tomatoes, peppers, cabbage, green beans and gourds. He has an average Schedule F income over the past 5 years of $76,800. Since his operation has been growing at 3.5% annually, his indexed Adjusted Gross Income is determined to be $88,166. Vern can choose 6 difference levels of coverage (65,75 or 80 percent of gross income and 75 or 90% payment level). The "loss inception point" is the gross income level below which losses are covered.

Another real-life example is a diversified vegetable and strawberry farmer with an AGR of $214,400. His 80% coverage level (or loss inception point) is $171,520. To get 90% payment on losses below that income (up to $154,368) his annual premium would be $668. At 75% payment (up to $144,720) the premium is $452, and at 65% payment (up to $125,424) the premium is $218.

TO BE COVERED YOU MUST SIGN UP BY JANUARY 31. However, your premium will not be due until a later date. For more information or to sign up for the AGR programs, contact an insurance agency that handles this program, including:

You can see that the AGR program is a good way to protect your business against major disaster. The numbers above were accurate at the time of writing, but please confirm with an insurance provider before assuming that  they apply to you or your farm.

• Arthur Carroll Crop Insurance Agency (800) 531-4700 or agcarro@ime.net
• Odell Insurance, Bradford VT (802) 222-4755 or odellins@together.net
• Rain and Hail: see website for local agencies: http:www.rainhail.com/tools/agent_search.html.

Click on the link for USDA's general fact sheet on the AGR program for 2007.