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The Risk Management Safety Net:
I. Introduction

Crop insurance is a critical aspect of the risk management safety net for food security in the United States as well as a factor in protecting rural economies and the availability of agricultural jobs by providing financial stability in agriculture. This has been especially apparent following the severe drought conditions of the past two years and the positive impact crop insurance has had, not only for insured producers but also for agricultural communities.

The Federal Crop Insurance Corporation (FCIC) seeks to provide a risk management safety net broad enough to cover the majority of commodities produced in the U.S. with adequate protection for the types of risk exposures faced by producers. Producers’ needs within the safety net vary over time for many reasons, so it is important for the agency to review and monitor the Federal crop insurance program and be responsive to changes that affect producers’ needs within the risk management safety net.

This Portfolio Analysis provides information about the current book of business, measures of market penetration now and over time with identification of areas of market potential. It also provides Risk Management Agency (RMA) on-going initiatives and priorities for product improvement and new product development. Priorities are targeted to areas where market potential is available, to improve the risk management safety net for U.S. agricultural producers.

Contact Information

For more information, contact RMA Public Affairs.