FOR IMMEDIATE RELEASE
January 24, 2011
OVERLAND PARK, Kansas – January 24, 2011 – The private insurance industry supports USDA’s decision to implement a good performance‐based program for famers.
“The Good Performance Refund (GPR) program has its merits, and we were pleased to see the savings resulting from the renegotiation of the 2011 Standard Reinsurance Agreement reinvested into the program” said Tom Zacharias, President of National Crop Insurance Services, a trade association representing the private crop insurance companies. “However, it would have been preferable to have more time to evaluate the proposal and provide effective input.”
One of the major concerns is that the industry is not being effectively utilized in the delivery of the proposed initiative. The public/private partnership has worked for over three decades to deliver a program characterized by high levels of participation.
“Farmers will logically turn to their agents first if they have questions about their refund,” said Zacharias. “It is unfortunate that the private companies and their agents are not directly in the loop for this initiative.”
Despite their reservations with the Good Performance Refund proposal, the industry encourages USDA to continue implementation for those who deserve this economic benefit.
“With market volatility and rising input costs, it’s important for RMA to push forward with this program,” said Zacharias. “We do hope that following the 2011 implementation of the GPR concept RMA will re‐evaluate the program and include its delivery partners in the process.”