Risk Management Agency Program Announcement

FCIC APPROVES REVENUE CROP INSURANCE PRODUCTS

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

WASHINGTON, Nov 20, 2000 - Ken Ackerman, Risk Management Agency Administrator, announced new and expanded revenue programs just approved by the Federal Crop Insurance Corporation (FCIC).

"Revenue products give our farmers price as well as yield protection, especially critical in a time of low commodity prices," said Ackerman. "With the expanded authority for private product development fostered by the Agricultural Risk Protection Act of 2000, we should be seeing more policies that give producers the tools they need to manage risk."

The pilot Adjusted Gross Revenue (AGR) program, also known as whole farm revenue insurance, is being expanded into 126 counties and independent cities in eight states-Delaware, Maryland, Michigan, New Jersey, New York, Oregon, Virginia, and Washington. Ackerman recognized RMA partners who collected the baseline data that enabled these additional counties to participate. Contributors include growers, grower associations, state Farm Bureaus, Farm Credit system lenders, State departments of agriculture, USDA agencies, reinsured companies, extension agents, extension specialists, and universities. "Because of the hard work and dedication of many people, farmers who have been unable to obtain traditional crop insurance can now protect their income," Ackerman added.

Besides expansion into more counties, AGR policy changes allow a payment rate option of 90 percent in addition to 75 percent and make it easier for producers to qualify for coverage. The AGR sales closing date is Jan. 31, 2001. A listing of approved AGR counties and cities for 2000 and 2001 is attached to this release.

The pilot MVPrice™ Endorsement, developed by American Growers Insurance Company, was approved as a supplement to the Multiple Peril Crop Insurance (MPCI) policy for rice-growing counties in Arkansas for the 2001 crop year. The endorsement provides an additional price above the MPCI price election for rice, determined by multiplying the percentage increase in the harvest price over the base price during the crop year by the MPCI price election, not to exceed 2 cents per pound.

The Board also approved IGF Insurance Company's requested changes for the Group Risk Income Protection (GRIP) program. GRIP is available to corn and soybean producers in Illinois, Indiana, and Iowa and provides both yield and price protection on a county basis. The primary change is the release of the expected price amount for the crop year on March 1 instead of March 15.

Producers should contact a crop insurance agent to discuss their options. A list of agents is available at local Farm Service Agency offices or at the RMA website: http://www3.rma.usda.gov/tools/agents/

AGR was available for the 2000 crop year
in the following states and counties:

State	Counties
Connecticut	All counties
Florida	Alachua, Gilchrist, Levy, Marion, Sumter, and Suwannee
Idaho	Canyon, Payette, and Washington
Maine	All counties
Massachusetts	All counties
Michigan	Allegan, Berrien, Kent, Ottawa, and Van Buren
New Hampshire All counties	All counties
Oregon	Malheur
Pennsylvania	Berks, Carbon, Lackawanna, Lehigh, Monroe, and Northampton
Rhode Island	All counties
Vermont	All counties

State	Counties
Delaware	All counties (3)
Maryland	Anne Arundel, Baltimore, Baltimore City, Calvert, Caroline, Carroll, Cecil, Charles, Dorchester, Frederick, Harford, Howard, Kent, Montgomery, Prince George's, Queen Anne's, St. Mary's, Somerset, Talbot, Wicomico, and Worcester (20) and Baltimore City
Michigan	Mason, Muskegon, Newaygo, and Oceana (4)
New Jersey	All counties (21)
New York	Cayuga, Chautauqua, Erie, Genesee, Monroe, Niagara, Onondaga, Ontario, Orange, Orleans, Oswego, Seneca, Suffolk, Ulster, Wayne, and Yates (16)
Oregon	Benton, Clackamas, Columbia, Lane, Linn, Marion, Multnomah, Polk, Washington, and Yamhill (10 counties in the Willamette Valley)
Virginia	Accomack, Caroline, Charles City, Chesterfield, Essex, Gloucester, Hanover, Henrico, Isle of Wight, James City, King and Queen, King George, King William, Lancaster, Mathews, Middlesex, New Kent, Northampton, Northumberland, Prince George, Richmond, Southampton, Surry, Sussex, Westmoreland, and York Counties (26 counties) and the following independent cities: Chesapeake, Colonial Heights, Franklin, Hampton, Hopewell, Newport News, Norfolk, Petersburg, Poquoson, Portsmouth, Richmond, Suffolk, Virginia Beach, and Williamsburg (14 cities)
Washington	Adams, Benton, Chelan, Douglas, Franklin, Grant, Kittatas, Klickitat, Okanogan, Walla Walla, and Yakima (11 counties in the central area)