USDA Releases First Draft of Proposed Crop Insurance Agreement to Protect Farmers From Higher Costs, Rein in Costs, and Improve Access to Crop Insurance Throughout the Country

USDA’s Risk Management Agency (RMA), which administers the Federal crop insurance program, today released the first draft of a proposed new Standard Reinsurance Agreement between the Federal Crop Insurance Corporation and the crop insurance companies which deliver the program nationally. The 2008 Farm Bill authorized RMA to renegotiate the agreement which was last negotiated for 2005. The release of the first draft follows months of preparatory discussions within RMA and between RMA and the insurance companies to hear their concerns and gather information needed to renegotiate the agreement. RMA expects to notify the companies at the end of 2009 that the current agreement will be canceled as of June 30, 2010, paving the way for this new agreement to be signed by all parties.