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!

Young woman farmer in field during harvest

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.

A VFR is an individual who has served on active duty in the United States Army, Navy, Marine Corps, Air Force, and Coast Guard, including the reserve components, was discharged or released under conditions other than dishonorable, and qualifies under any of the following:

Has not operated a farm or ranch;
Has operated a farm or ranch for not more than 5 years; or
Is a veteran who has first obtained status as a veteran during the most recent 5-year period, even if that veteran has previously operated a farm or ranch for more than 5 years.

Business entities, other than an individual, may be eligible for veteran farmer or rancher benefits if all substantial beneficial interest holders qualify individually as a VFR. A spouse’s veteran status does not impact whether a person (comprised only of the veteran and their spouse) is considered a veteran farmer or rancher.

An insurable interest does not mean that the crop or livestock must be insurable, just that the individual must have an interest that is at financial risk in the crop or livestock.

For example, if an individual has a 100% share in the planting and harvesting of blueberries in Massachusetts where blueberries are not an insurable crop, then the individual has a financial risk that is considered an insurable interest for the purpose of determining BFR benefits.