Risk Management Agency Program Announcement

REVENUE INSURANCE FOR ANIMALS, ANIMAL PRODUCTS, AND UNINSURABLE CROPS APPROVED

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

WASHINGTON, Nov 22, 2002 - The Risk Management Agency (RMA) today announced approval of an insurance plan that will allow farmers to insure a portion of the revenue they make from crops; animals such as chickens, dairy cows, hogs and sheep; and animal products such as eggs, milk, meat, and wool. Under this insurance plan, producers can also cover revenue generated from commodities that are currently uninsurable (such as forage, fruit and vegetable crops).

The Adjusted Gross Revenue (AGR)-Lite pilot was developed by the Commonwealth of Pennsylvania, the State Department of Agriculture and approved by the Board of Directors of the Federal Crop Insurance Corporation on October 22, 2002.

"This year, President Bush, Agriculture Secretary Ann M. Veneman and Congress have made the development of risk management tools for livestock producers a priority," said RMA Administrator Ross J. Davidson. "I want to commend Pennsylvania Agriculture Secretary Samuel Hayes and his Department for producing a viable, market-driven program in a very short amount of time. "

The pilot program, approved by the Board of Directors of the Federal Crop Insurance Corporation on Oct. 22, 2002, will be available in all counties in Pennsylvania except Philadelphia County. Under this plan, the revenue from all commodities, including byproducts such as milk, can be protected with one insurance policy. Eligible producers can purchase coverage levels of 65 percent, 75 percent or 80 percent of their 5-year revenue history or current year's expected farm income, whichever is lower. Total coverage for each policy (liability) is limited to $100,000.

If available, producers may be eligible for federal cost sharing on premiums and Pennsylvania will also provide producers additional assistance. Program details will be available from crop insurance agents in December.

The sales closing date for the program is Jan. 31, 2003.

Related item: October 22 Board action (PDF)