Risk Management Agency Program Announcement
RISK MANAGEMENT AGENCY SET TO DELIVER NEW BENEFITS
Contact: Eric
Edgington (202) 690-2539
Eric.Edgington@rma.usda.gov
WASHINGTON, Jun 20, 2000 - Risk Management Agency
(RMA) Administrator Ken Ackerman announced that the agency will
move quickly to make new program benefits available to farmers
for insuring the 2001 crop. The new benefits are primarily in
the form of increased premium subsidy and adjustments to the formulas
used to calculate coverage.
"RMA is working non-stop to make these benefits available
to producers as quickly as possible," said Ackerman. "We
are also anxious to develop and use the new authority we requested
to curb program abuse. Ensuring a level playing field for all
producers is critical to maintaining producer confidence in the
program."
Under the new law, premium subsidy levels at higher levels
of coverage have increased.
Changes in Percent Premium Subsidy
|
Coverage Level |
50/100 |
65/100 |
75/100 |
|
Old Subsidy Level |
55 percent |
42 percent |
24 percent |
|
New Subsidy Level |
67 percent |
59 percent |
55 percent |
All Federally backed plans of insurance, including revenue
insurance plans, will receive the same percentage premium subsidy.
This change will produce significant cost savings for producers
purchasing revenue insurance compared to previous years.
In addition to lowering premiums for higher levels of coverage,
the new legislation authorizes a pilot livestock insurance program,
improves multi-year loss coverage and encourages private-sector
development of new types of insurance products.
For most producers, the higher premium subsidies will be available
to protect 2001 crops. Producers should contact a crop insurance
agent for details. A listing of crop insurance agents is at the
local office of the Farm Service Agency and at http://www.rma.usda.gov/tools/agents(Agent Locator).
Related items: Manager's Bulletin
| June 30, 2000, Press Release |
Brief Outline (PDF)
| 
