Risk Management Agency Program Announcement

RMA CONTINUES WRITTEN AGREEMENTS FOR 2002

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

WASHINGTON, Jan 15, 2002 – The Risk Management Agency today reaffirmed that it will continue to process written agreements for the 2002 crop year. RMA is issuing this announcement to clarify its intentions.

Written agreements are a means of providing insurance coverage in counties where insurance currently is not available for insurable crops or by adjusting the insurance offer outside the standard terms and conditions of the policy. Although a useful tool for handling atypical situations and conditions, problems have been identified in the use of written agreements.

Since the deadlines for formally changing the insurance programs to reduce the need for written agreements has passed, RMA will continue to process such agreements under its current underwriting criteria for the 2002 crop year. However, due to the identified problems, RMA will take such steps as necessary to ensure that the written agreements are in compliance with the current underwriting criteria and that requests for written agreements are not granted where losses show that the risk is excessive. For the 2003 crop year, the underwriting criteria will be revised as appropriate and undergo the expert review process.