RMA BACKGROUNDER

Contact: Eric Edgington (202) 690-2539
Eric.Edgington@rma.usda.gov

WASHINGTON, Nov 12, 1999 - The Risk Management Agency (RMA) announced an estimated 25 percent premium discount for insured farmers. Funding for the discount was provided by the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act.

Last year's premium discount initiative was an unqualified success -- estimates are that insured acres jumped over 9 percent, farmer protection increased more than 15 percent and acres with higher levels of coverage were up almost 21 percent over 1998 levels.

To ensure that all producers have the opportunity to take advantage of this incentive, RMA announced that producers growing crop year 2000 crops with insurance sales closing dates between June 30, 1999, and December 1, 1999, have until December 1, 1999, to obtain coverage. Also, currently insured producers may increase their coverage before December 1. Like last year's premium discount, the amount of the discount will depend on crop prices and how many farmers choose to insure or increase their protection.

Producers should contact a crop insurance agent to discuss their options. A listing of agents is available at local Farm Service Agency offices or at www.rma.usda.gov/tools/agents.