The public sector’s strengths benefit the crop insurance program in many ways. As a regulator, we ensure the fairness of policies and set the rules. We also make sure that policy rates are accurate and just—and that there’s crop insurance options for all producers, large and small.
RMA also forms partnerships to provide education and outreach programs, especially reaching out to underserved farmers and ranchers around the country. Over the past 10 years, RMA has awarded $124 million for such partnerships.
Working with the private sector, RMA has grown the insurance coverage for America’s agricultural producers from about 25 percent of eligible major crops less than 30 years ago to today’s estimated 85 percent coverage. That means we’re keeping farmers on the farm.
Risk Management Education and Outreach | Partnership and Cooperative Agreement Information
RMA works with private partners to educate farmers and ranchers, especially underserved producers, about crop insurance and risk management tools available to them. Over the past 10 years, RMA has awarded $124 million for such partnership agreements.
Federal Crop Insurance Corporation (FCIC) | Private Sector Developed Plans of Insurance
Private development of crop insurance policies allows RMA to keep pace with evolving risks and safety net requirements within agricultural production. The amounts of crop insurance coverage and payments for insured loses to producers have gone up nearly 400 percent, to $102.1 billion and $5.6 billion in the 2015 crop year, respectively. The FCIC Board includes from the private sector four farmers (one of whom grows specialty crops), an insurance professional (often an agent); and an individual who’s knowledgeable about reinsurance or regulation.
Approved Insurance Providers | Reinsurance Agreements Overview
We partner with Approved Insurance Providers (AIPs) to improve both delivery and develop of crop insurance policies for farmers and ranchers. By partnering with AIPs, RMA enhances state-wide coverage options across an increasingly diverse portfolio of crops within agricultural production.
The Standard Reinsurance Agreement (SRA) and the Livestock Price Reinsurance Agreement are cooperative financial assistance agreements between the Federal Crop Insurance Corporation (FCIC) and an insurance company. FCIC is a government corporation within USDA authorized to carry out programs of the Federal Crop Insurance Act. The Risk Management Agency acts on behalf of FCIC to administer all Federal crop insurance programs.
There are two types of AIPs based on their underlying reinsurance agreements with the USDA Risk Management Agency. The first group of AIPs, referred to as Crop Insurance Providers, are designated to provide crop insurance coverage through the Standard Reinsurance Agreement for the year 2016. The second group of AIPs, referred to as Livestock Price Insurance Providers, are designated through the Livestock Price Reinsurance Agreement to provide insurance coverage through the for the year 2016.
