Risk Management Agency Program Announcement

AGR CROP INSURANCE AVAILABLE FOR UNDERSERVED N.E. FARMERS

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

WASHINGTON, Nov 27, 2000 - Risk Management Agency (RMA) Administrator Ken Ackerman announces the 2001 Cost-Share Program for the pilot Adjusted Gross Revenue (AGR) program in 11 underserved states located in the Northeast, as authorized by Section 133(b) of the Agricultural Risk Protection Act of 2000 (2000 Act).

"Because producers in the Northeast tend toward multiple, nontraditional crops, many haven't been able to take advantage of crop insurance programs," Ackerman said. "The AGR Cost-Share Program will provide added incentive to these producers to protect their income by purchasing the new pilot AGR insurance policy."

AGR is the first whole farm revenue crop insurance product available to U.S. farmers and the first insurance that protects revenue from livestock--up to 35 percent of the expected allowable revenue total. AGR provides an incentive for diversification because the more diversified the producer's farming operation, the higher the coverage levels that are available. Since AGR is a new program concept, the cost-share will provide farmers with an incentive to try the program in 2001 at a very low cost to determine how well it meets their needs. Coverage is based on a producer's historic Schedule F tax form information rather than production to determine coverage.

To be eligible for the program, producers must meet the qualifications for AGR insurance and apply for new or modified coverage under AGR by Jan. 31, 2001. Covered states and counties include:

State	Counties
Connecticut	All counties
Delaware	All counties
Maine	All counties
Maryland	Anne Arundel, Baltimore, Calvert, Caroline, Carroll, Cecil, Charles, Dorchester, Frederick, Harford, Howard, Kent, Montgomery, Prince George's, Queen Anne's, St. Mary's, Somerset, Talbot, Wicomico, Worcester, and Baltimore City
Massachusetts	All counties
New Hampshire	All counties
New Jersey	All counties
New York	Cayuga, Chautauqua, Erie, Genesee, Monroe, Niagara, Onondaga, Ontario, Orange, Orleans, Oswego, Seneca, Suffolk, Ulster, Wayne, and Yates
Pennsylvania	Berks, Carbon, Lackawanna, Lehigh, Monroe, and Northampton
Rhode Island	All counties
Vermont	All counties

All producers purchasing AGR insurance policies in these counties will receive cost-share assistance amounting to 50 percent of the producer-paid premium and the $30 administrative fee.

Coverage Level	Payment Rate	Cost-Share of Producer-Paid Premium (USDA-paid)	Administrative Fee (USDA-paid)
All	All	50%	$30

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