Risk Management Agency Administrator Ken Ackerman says record indemnity payments went to farmers from last year's losses, but the risk was shared by enough farmers to allow the federal crop insurance program to absorb the losses and still have a "very moderate" loss ratio. He expects Congress will resolve differences over crop insurance reform this year.

"We think there's a good chance Congress will move forward" with reform legislation, Ackerman told reporters Monday. Senate Agriculture Committee Chairman Richard Lugar (R-IN) has promised to finish committee work on a bill by March 8 that must be forged from competing proposals. "It's possible there may be a compromise proposal put on the table in the next few weeks, but we have not seen one yet," he added.

The legislative situation is "very complex," Ackerman said. He wants a bill that makes coverage more affordable, deals with the problem of multiple year losses, deals with limitations in the so-called safety net by bringing more crops under the crop insurance umbrella and develops a livestock program.

Almost $2.3 billion was paid out in indemnities from 1999 losses, he said, "the most we've ever paid out in any one year." The reason, he added, is that the program is much larger than it was a decade ago. That means a greater total of indemnities is paid out, but the risk is shared by enough farmers to allow the program to absorb the losses and still have a "very moderate" loss ratio.

Participation has tripled over the last decade, Ackerman said. In 1993, only one crop insurance product was available - multiple peril coverage. Now there is catastrophic coverage, buy-up coverage, limited buy-up coverage, revenue insurance in several forms, a group risk plan, a dairy options pilot program, prevented planting coverage, several new crops may be insured and several other crop coverages have been expanded, and there's an expanded nursery crop insurance program.

Farmers paid about $1 billion in premiums last year to the 17 companies that sell crop insurance with company revenue from policy sales around $300 million, according to Ackerman.