Contact:
Shirley Pugh (202) 690-0437
Shirley.Pugh@rma.usda.gov

WASHINGTON, updated Dec. 2, 2005 - The 2006 Agriculture Appropriations Bill, signed into law by President Bush on November 10, 2005, addresses Risk Management Agency (RMA) issues. The bill provides for the expenditure of funds for U.S. Department of Agriculture programs, and touches on two important RMA programs. Written agreement requirements and the funding of the Premium Reduction Plan (PRP) program are both modified by passage of the bill.

PRP: The bill prohibits the use of 2006 appropriated funds for the PRP program in the 2007 crop year. One company is offering the program now, but nine companies qualified to request approval to offer it for the 2006 year. The program will not be conducted for the 2007 crop year.

Written Agreements: Requirements for written agreements have changed as well. In the past, if conventional crop insurance was not available for a specific crop in a county, a written agreement could be offered provided the producer could show a three-year history of having grown that crop in that county. The new language provides that a “similar” crop may be used to fulfill the three-year history requirement.