Congress created and provides funding for modern-day Federal crop insurance through the Federal Crop Insurance Corporation (FCIC) facilitating farmers’ management of the risks to natural disasters and market fluctuations. The U.S. Department of Agriculture’s Risk Management Agency (RMA) administers the numerous programs of the FCIC.
To this end, FCIC/RMA sets program standards and procedures, develops and approves new products and improvements to existing products and programs, sets premium rates and price elections, and provides general program oversight. The Federal government enhances affordability for farmers by discounting farmer premiums and offsetting a portion of the delivery costs that would otherwise be built into the premium.
* Updated April 2021