1 / 22

Risk Management Agency Risk Management Services Division

Risk Management Agency Risk Management Services Division. Monday, January 20, 2003. What’s New At RMA. RMA VISION We serve America’s agricultural producers through effective, market-based risk management solutions. What’s New At RMA. RMA MISSION

haley-terrell
Download Presentation

Risk Management Agency Risk Management Services Division

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Risk Management AgencyRisk Management Services Division Monday, January 20, 2003

  2. What’s New At RMA RMA VISION We serve America’s agricultural producers through effective, market-based risk management solutions.

  3. What’s New At RMA RMA MISSION Promote, support, and regulate sound risk management solutions to strengthen and preserve the economic stability of America’s agricultural producers.

  4. What’s New At RMA STRATEGIC GOALS • Widely available and effective risk management solutions • A fair and effective delivery system • Informed stakeholders • Program integrity • Excellent service

  5. Integrity Professionalism Quality Service Adaptability Diversity Respect Stewardship Teamwork Communication What’s New At RMARMA Values

  6. What’s New at RMA • $3.1 B + Paid in 2002 Indemnities (as of 1/12/03) • $18.5 M Awarded in Partnership Grants (12/2002) • Prevented Planting Forum • Crop Insurance Handbook (Procedural) Issues Workshop • New Program Development • Failure of American Growers Insurance Company

  7. 2002 Indemnities National - $3,147,409,209 Paid on 215,732,212 Acres Minnesota - $109,178,691 Paid on 16,276,724 Acres North Dakota - $315,171,096 Paid on 19,562,724 Acres South Dakota - $320,911,467 Paid on 12,394,168 Acres

  8. Partnership Grants • Authorized by ARPA • Announced in December 2002 • Complete list on RMA Website: http://www.rma.usda.gov/news/2002/11/educationtable.html • Some organizations: Montana State University, Montana Grain Growers Assn. ND Grain Growers Assn., MN Assn. Of Wheat Growers

  9. Prevented Planting Forum • Recent droughts have identified weaknesses in current prevented planting coverage • RMA will be evaluating its current prevented planting rules • Crop insurance industry and commodity groups will participate • First meeting held January 14, 2003

  10. Prevented Planting Insurance • Must provide meaningful coverage to insured’s • Must provide certainty for both companies and insured’s • Must be simple to administer • Must be actuarially sound

  11. Prevented Planting Insurance • Same policy provisions in effect for 2003 • New Basic Provisions Expected for 2004

  12. Held January 16-17 Industry & RMA Participants Discuss for 2004: All County application/election Combining & Dividing APH Yield History Added Land Deadlines for Underwriting Review RMA Yield Determinations Maximum Yield Edits CIH Procedural Issues Workgroup

  13. ARPA Created New Era for Risk Management Programs • 508(h) Products • $65 Million over a 5 year period • Contracted Product • $110 Million over a 5 year period

  14. 508(h) Products • Submission Regulation 7 CFR 400 Subpart V • Products submitted first 5 business days of Jan., April, July, or Oct. • 120 days for Board to Approve or Disapprove • Once approved it is released for all SRA holders use

  15. Types of 508(h) Products • Crop Revenue Coverage (CRC) • Revenue Assurance (RA) • Group Risk Income Protection (GRIP) • Livestock Gross Margin (LGM)

  16. Types of 508(h) Products • Livestock Risk Protection (LRP) – 2002 • Hybrid Seed Price Endorsement (IL, IN, IA, MI, MN, NE, SD and WI) – 2002 • Best Management Practices (IA, MN, PA and WI) - 2003

  17. The Board may Approve a Submissionif it Determines • Interests of producers are protected • Rates are actuarially appropriate • Submission conforms to sound insurance and underwriting principles • Associated risks are appropriate

  18. Failure of American Growers Insurance Company • NE Dept. of Insurance & RMA Working Together • Commitment to Pay Producers On Time • Agent’s Commissions Are Being Paid • MGR-02-022 Issued Regarding the Transfer of Policies • Watch RMA Website for Updates

  19. 2003 Quality Adjustment MGR-02-020 – Clarification of Quality Adjustment Loss Provisions: Reinsured companies must reject any quality determinations that are not based on grading standards in the respective Crop Provisions.

  20. 2003 FM & Dockage MGR-02-017 – Claims Advisory – Dockage Issued August 20, 2002 Dockage & FM MAY be deducted if damage is result of insured peril. Not intended to include elevator charges.

  21. Adjusted Gross Revenue Pilot Program Uses Producer’s Schedule F AGR-Lite Developed by PA Dept. of Ag. Farm Bill of 2002 Required Expansion into 8 Additional Counties in CA & PA AND WE DID!

  22. Thank You • For further information, please visit the Risk Management Agency web site:www.rma.usda.gov

More Related