Because the Risk Management Agency (RMA) has restrictions on the use of written agreements for crop insurance, my written agreement was not renewed. How can I obtain protection for my crop?
Section 3N of the Written Agreement Handbook (available on RMA’s website) does not allow approval of written agreements if, during the years an agreement is in force, the cumulative loss ratio for the acreage insured equals or exceeds 3.0, there is a minimum of 2 crop years in which an indemnity paid exceeded total premium earned, and an indemnity payment exceeded total premium paid on the acreage in the most recent crop year premium was earned. Unfortunately, this criteria does not account for general weather conditions affecting all producers in the region or adjacent county experience. Therefore, the only way to obtain a written agreement is to show that no loss would have occurred to two succeeding crop years following the unfavorable experience determination and resubmit to RMA. In the meantime, producers are encouraged to enroll in the Non-insured Assistance Program to obtain some level of basic coverage.
Related Questions
- Where can I find copies of Farm Service Agency (FSA), Foreign Agricultural Service (FAS), or Risk Management Agency (RMA) program notices?
- Why is RMA revising the Common Crop Insurance Regulations to combine these plans of insurance?
- Tenancy Agreements - FAQs Why is a written tenancy agreement necessary for Landlords?
