USDA Seeks Crop Insurance ‘Improvements'

August 30, 2001

USDA is taking "new measures" to improve oversight of the federal crop insurance program. USDA's Risk Management Agency and Farm Service Agency, and private reinsured crop insurance companies who sell and service crop insurance policies are forces in a nationwide effort to improve the integrity of the program.

With broad expansion of the program in recent years and even more extensive expansion expected in the near future, the law has provided USDA greater ability to curb program abuse. To discourage program abuse, violators now are subject to criminal prosecution, civil suit, and administrative sanctions. Administrative sanctions can include fines, disqualification from crop insurance and other USDA programs, and government-wide debarment and suspension.

Earlier this year RMA began implementation of new oversight procedures that utilizes the broad-based assistance of FSA to carry out a coordinated compliance plan that includes close monitoring and oversight of the crop insurance program. Reinsured companies will work closely with the two Federal agencies in implementing the new procedures. Companies will continue to play a major role in the oversight of crop insurance through their internal procedures and by taking prompt corrective action to identified problems.

The coordinated compliance monitoring program also provides for expanded data exchange between the two agencies and reinsured companies. Information provided to FSA offices and reinsured companies by insured producers will be reconciled in an effort to research and identify inconsistencies

Additional information on the Federal crop insurance program is available on the RMA website http://www.rma.usda.gov.