RMA Readies New Crop Insurance Program

June 23, 2000

Risk Management Agency (RMA) Administrator Ken Ackerman says the agency will move quickly to make new program benefits available to farmers for insuring 2001 crops. The new benefits are primarily in the form of increased premium subsidy and adjustments to the formulas used to calculate coverage.

"RMA is working non-stop to make these benefits available to producers as quickly as possible," said Ackerman. "We are also anxious to develop and use the new authority we requested to curb program abuse. Ensuring a level playing field for all producers is critical to maintaining producer confidence in the program."

Under the new law, premium subsidy levels at higher levels of coverage have increased.

All federally backed plans of insurance, including revenue insurance plans, will receive the same percentage premium subsidy, said Ackerman. This change will produce significant cost savings for producers purchasing revenue insurance compared to previous years, he added.

In addition to lowering premiums for higher levels of coverage, the new legislation authorizes a pilot livestock insurance program, improves multi-year loss coverage and encourages private-sector development of new types of insurance products.

For most producers, the higher premium subsidies will be available to protect 2001 crops. Producers should contact a crop insurance agent for details.