As part of the 2014 Farm Bill, a new category of farmer has been established for crop insurance. 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 5 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 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.. Please note that a BFR status is different than a New Producer status, which is established on a by crop, by county basis.
Starting in 2020, RMA also introduce Veteran Farmer Rancher (VFR) to the Crop Insurance Program. 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.