RMA ANNOUNCES UP TO $18 MILLION IN FINANCIAL ASSISTANCE TO 15 TARGETED STATES

Ann Jorgensen (202) 690-4526
Ann.Jorgensen@rma.usda.gov

Funds to Encourage Higher Levels of Participation and Buy-up Coverage in Underserved Areas

WASHINGTON, Feb 21, 2003 (revised Mar 3, 2003) - USDA's Risk Management Agency (RMA) yesterday made available up to $18 million to reduce the cost of crop insurance programs in 15 historically underserved states. RMA will provide financial assistance to producers under the Agricultural Management Assistance (AMA) program, authorized by the Federal Crop Insurance Act (FCIA).

"Crop insurance is a vital part of risk management in American agriculture," said Risk Management Agency Administrator Ross J. Davidson, Jr. "This financial assistance will assist and encourage producers in these underserved states to use crop insurance products to manage their price and production risks."

The Targeted States Crop Insurance Financial Assistance Program is available to producers purchasing policies after February 21, 2003, and acreage reporting dates prior to September 30, 2003, in the following states: Connecticut, Delaware, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming.

Secretary Veneman made the funding announcement yesterday during remarks to the 79th Annual Agricultural Outlook Forum in Arlington, Virginia. The Secretary announced a new risk management initiative being undertaken by USDA to examine risk management tools, identify underserved producers and closely examine the regions, commodities and risks and then prioritize the development of new products to fill the gaps identified.

The priorities of this initiative include examining the need to serve the livestock industry, including forage and range coverage; addressing concerns with coverage in regions facing multi-year droughts; simplifying and improving the effectiveness of various insurance products; and reviewing various RMA authorities to ensure the soundness of the delivery systems and effective oversight of the crop insurance industry. For a complete copy of Secretary Veneman's remarks visit http://www.usda.gov.

Interested producers should contact their agent regarding program eligibility and availability. A list of crop insurance agents is available at local Farm Service Agency offices or by using RMA's Agent Locator at: http://www3.rma.usda.gov/tools/agents/.