HILO » Hawaii farmers with multiple crops will be able to buy insurance for their farm income under a federal program being introduced here.

The program, called Adjusted Gross Revenue-Lite or simply AGR-Lite, allows farmers to insure overall income rather than individual crops, said agricultural extension economist Kent Fleming with the University of Hawaii.

The crop insurance already familiar to farmers requires separate policies for each crop. Farmers with small amounts of multiple crops may have found multiple policies too burdensome, or their specific crop might not have been covered at all.

AGR-Lite bypasses those problems.

The program is already operating in about two-thirds of the states, and details can vary.

To demonstrate how the program would work in Hawaii, Fleming used an example of a farmer expecting $150,000 in income from all crops.

The income expectation is based on the average of the five preceding years.

AGR-Lite would cover up to 80 percent of income, or $120,000.

So if the farmer's income fell to $120,000 in given year, he would receive no insurance payout. But if it fell to $100,000, he would be reimbursed for a portion of the $20,000 lost.

The size of the portion would depend on the coverage option chosen by the farmer, either 75 percent or 90 percent. If 90 percent, that amount times the $20,000 loss would give him an $18,000 payout.

“;The great news is that the insurance premiums are not only fair and affordable, but they're also subsidized, making it a no-brainer decision to minimize risk,”; Fleming said.

The federal subsidy is about 50 to 60 percent of the premium.