FINAL RULE ISSUED ON COMMON CROP INSURANCE BASIC PROVISIONS -- CLARIFICATION
James Callan (202) 720-8812
Raegan Weber (202) 720-6200
WASHINGTON, Jul 2, 2003 - USDA's Risk Management Agency (RMA) today announced the Common Crop Insurance Policy (Basic Provisions) final rule in accordance with the Agriculture Risk Protection Act of 2000 (ARPA). The Basic Provisions were recently published in the Federal Register and are effective for the 2004 crop year for crops with a contract change date of June 30, 2003, and later.
"ARPA charged the USDA and RMA to enhance the Federal crop insurance program to better
serve our nation's agricultural producers," stated Administrator Ross J. Davidson, Jr.
"RMA looks forward to working diligently with the insurance companies in accomplishing this
goal and implementing these new rules."
The Basic Provisions provide general policy terms and conditions applicable to most crops insured under the Federal crop insurance program. These are used in conjunction with specific crop provisions to provide producers with insurance coverage for their agricultural commodities. To comply with ARPA mandates, RMA made changes to select terms and conditions in the Basic Provisions. For example, the final rule:
includes limits on multiple insurance benefits on the same acreage in the same crop
year;
allows a second crop to be planted on acreage where a first crop was prevented from
being planted; and
adds an informal review process for determinations regarding "good farming
practices."
A number of additional changes to the Basic Provision were proposed, but not carried forward
in this final rule. These proposed changes will be addressed in a subsequent final rule and
will not be effective until the 2005 crop year.
Interested producers should contact their agent regarding the Common Crop Insurance Policy Basic Provisions. A list of crop insurance agents is available at RMA's Agent Locator.
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