Risk Management Agency’s (RMA) mission is serving America’s agricultural producers through effective, market-based risk management tools and solutions to strengthen the economic stability of agricultural producers and rural communities. To carry out this mission, RMA operates and manages the Federal Crop Insurance Corporation (FCIC).
Last Known Status
Department of Agriculture, Risk Management Agency
Types of Assistance
Uses and Use Restrictions
The Federal Crop Insurance Corporation (FCIC) is a wholly owned government corporation created February 16, 1938 (7 U.S.C. 1501.) The program was amended by Public Law (P.L.) 96-365, dated September 26, 1980, to provide for nationwide expansion of a comprehensive crop insurance plan. FCIC is administered by the Risk Management Agency (RMA), and promotes the national welfare by improving the economic stability of agriculture through a secure system of crop insurance. FCIC provides an actuarially sound risk management program that protects against agricultural production losses due to unavoidable causes such as drought, excessive moisture, hail, wind, hurricane, tornado, lightning, and insects. In addition to these causes, revenue insurance programs are available under which producers of certain crops are protected against loss of revenue stemming from low prices, poor yields, or a combination of both. Federal crop insurance is available to producers through private insurance companies that market and service policies and also share in the risk. Thus, the program delivery is a joint effort between the Federal government and the private insurance industry. Federal government subsidizes insurance premiums at a variety of levels depending on level of insurance coverage.
Federal Crop Insurance Act, as amended, 7 U.S.C. 1501-1520, Agricultural Adjustment Act of 1938, 7 (U.S.C. 1501; Federal Crop Insurance Act of 1980, as amended, Public Law 101-624; Federal Crop Insurance Reform Act of 1994, Public Law 103-354; Federal Agriculture Improvement and Reform Act of 1996, Public Law 104-127; Agricultural Research, Extension, and Education Reform Act of 1998, Public Law 105-185; Agriculture Risk Protection Act of 2000, Public Law 106-224; Food, Conservation and Energy Act of 2008, Public Law 110-234.
Unless otherwise restricted by the insurance policy, owners or operators of farmland, who have an insurable interest in a crop in a county where insurance is offered on that crop, are eligible for insurance.
This program is excluded from coverage under OMB Circular No. A-87.
Different types of crop productions information is required depending on the crop insurance purchased. This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Application for crop insurance offered by a company reinsured by FCIC must be filed with a crop insurance sales agent. Both catastrophic and additional coverage are available only from private companies. In general, crops and acreage must be reported to establish insurance coverage for crop insurance and, if not eligible for crop insurance. This program is excluded from coverage under OMB Circular No. A-110.
The insurance contract becomes effective upon issuance of a Notice of Acceptance by the insurance company. Notices of Acceptance for insurance coverage are issued upon a determination that the applicant is eligible.
Contact the headquarters or regional office, as appropriate, for application deadlines.
Range of Approval/Disapproval Time
From 15 to 20 days.
Appeals should be addressed within 30 days to the National Appeals Division, U.S. Department of Agriculture, Washington, DC 20250.
Continuous insurance contract.
Formula and Matching Requirements
This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance
Not applicable. See the following for information on how assistance is awarded/released: Not applicable.
Post Assistance Requirements
Private Industry Crop Insurance Acreage Report; Actual Production History Yield Report; and in the event of a loss, Notice of Damage, Production Worksheet, and proof of loss. Cash reports are not applicable. Progress reports are not applicable. Expenditure reports are not applicable. Performance monitoring is not applicable.
This program is excluded from coverage under OMB Circular No. A-133. Recipients are subject to audit by the RMA internal compliance function, private insurance company auditors, Office of the Inspector General, USDA, and the General Accounting Office.
Insured must keep for 3 years, after the end of the crop year, records of harvesting, shipments, sale or other disposition of all insured crops produced on each unit covered by the contract and separate records for any uninsured acreage of the insured crops.
Fiscal Year 2012: Over the past seven decades, Federal crop insurance has been the primary product provided by the FCIC (administered by the Risk Management Agency (RMA)) and consists of various alternatives designed to improve the economic stability of agriculture. Recent legislative mandates have prompted significant program growth and the development of many large and complex new programs. RMA continuously strives to provide adequate risk protection for our Nation’s agricultural producers and to identify and address concerns about Federal crop insurance.
RMA continues to evaluate risk management products, review and approve private sector products to be reinsured by FCIC, and ensure delivery of these products to agricultural producers. Risk management products can help producers protect themselves from yield risks, market risks, or both. Examples of more recent, new and innovative insurance tools are revenue insurance, forage, rangeland, specialty crops, and livestock pilots. For 2012, with approximately 1.1 million policies on 282 million acres, the program provided nearly $117 billion in risk protection. Fiscal Year 2013: NA. Fiscal Year 2014: NA.
(Insurance) FY 12 $9,487,140,000; FY 13 est $14,812,030,000; and FY 14 est $11,011,700,000 - These amounts represent total indemnities. (Insurance) FY 12 $4,507,315,000; FY 13 est $7,480,875,000; and FY 14 est $6,868,039,000 - These amounts represent premium subsidy to farmers through reinsured companies.
Range and Average of Financial Assistance
Level of assistance varies according to policy, crop and indemnities paid.
Regulations, Guidelines and Literature
7 CFR Part 400 and a brochure "Introduction to Risk Management"- available at no charge.
Regional or Local Office
See Regional Agency Offices. Interested producers should contact their Regional Office listed in Appendix IV of the Catalog, or a private industry crop insurance agent.
Carl Frazier 2641 SW Wanamaker Rd, Suite 201
, Topeka, Kansas 66614 Email: firstname.lastname@example.org
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