Beginning Farmer & Rancher
A Beginning Farmer and Rancher (BFR) is an individual who has not actively operated and managed a farm or ranch in any county, in any state, with an insurable interest in a crop or livestock as an owner-operator, landlord, tenant, or sharecropper for more than 10 crop years, excluding any crop year that the BFR was under the age of 18, in post-secondary studies, or on active military duty. Any individual who qualifies as a BFR is eligible to receive an extra subsidy on their crop insurance premium:
- 15 percentage points additional subsidy for the first two crop years
- 13 percentage points for the third crop year
- 11 percentage points for the fourth crop year
- 10 percentage points for years five through ten
Administrative fees for crop insurance policies are also waived. BFR’s receive a higher percent of T-Yield (if applicable) when using the Yield Adjustment Endorsement on a policy. Please note that a BFR status is different than a New Producer status, which is established on a by crop, by county basis.
Veteran Farmer & Rancher
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 (1) has not operated a farm or ranch, (2) has operated a farm or ranch for not more than five years, or (3) is a veteran who has first obtained status as a veteran during the most recent five-year period, even if that veteran has previously operated a farm or ranch for more than five years. Any individual who qualifies as a VFR is eligible to receive an extra 10% subsidy on their crop insurance premium in addition to having their administrative fees waived and receive a higher percent of T-Yield (if applicable) when using the Yield Adjustment Endorsement on a policy.
Individuals cannot duplicate benefits by being both a VFR and BFR.