Risk Management Agency in the United States

The Risk Management Agency (RMA), via the Federal Crop Insurance Corporation
(FCIC), oversees and administers the crop insurance program under the Federal
Crop Insurance Act. Crop insurance is offered to qualifying producers through 16 private sector crop insurance companies. Under the new Standard Reinsurance Agreement (SRA), RMA provides reinsurance, pays premium subsidies, reimburses insurers for administrative and operating costs and oversees the financial integrity and operational performance of the delivery system. RMA bears much of the noncommercial insurance risk under the SRA, allowing insurers to retain commercial insurance risks or reinsure those risks in the private market. In 2006, the Federal crop insurance
program provided producers with more than $44 billion in protection on approximately 246 million acres through about 1.2 million policies. There are 22 insurance plans available and 26 active pilot programs in various stages of development.

RMA also works closely with the private sector to ?nd new and innovative
ways to provide expanded coverage. This includes risk protection for specialty
crops, livestock and forage, and rangeland and pasture. Thus, RMA is able
to reduce the need for ad hoc disaster bills and available coverage caused by
long-term production declines that result from extended drought in many areas.
Additional information about RMA can be found on its Web site, www.rma.
usda.gov, including agency news, State pro?les, publications, announcements on
current issues, summaries of insurance sales, pilot programs, downloadable
crop policies, and agency-sponsored events. The site also features online tools,
calculators, and applications. For further information, contact the Office of
the Administrator, Risk Management Agency, Department of Agriculture, Stop 0801, 1400 Independence Avenue SW., Washington, DC 20250. Phone, 202–690–2803. Internet, http://www.rma.usda.gov.