USDA RMA Sets Listening Sessions too Review the Apple Crop Insurance Policy

 

 

USDA RMA Sets Listening Sessions to Review the Apple Crop Insurance Policy

February 26, 2018

Since July 2017, many apple growers attended or participated in meetings held by USDA’s Risk Management Agency (RMA) where the Agency discussed concerns with the higher than acceptable loss ratios experienced by the apple policy in certain parts of the country. The law under which the crop insurance program operates requires that the ratio of loss payouts to premium and federal subsidy income must not exceed a 1:1 ratio. Loss payouts (indemnity payments) must not exceed the total sum of premiums paid by growers and the federal premium subsidy. The federal subsidy for crop insurance premiums has averaged roughly 65% of the total premium cost in recent years.

As part of the in-depth analysis of the current policy, the RMA has developed a framework under which they plan to gather information and develop proposals to deal with the identified problems.

The first stage of the process calls for the RMA to hire a contractor with substantial expertise in crop insurance to conduct a study of the apple contract and to seek input from growers and insurance representatives. The contractor selected by RMA is Agralytica of Alexandria, Virginia.

Today, the RMA announced a series of listening sessions to be conducted by Agralytica inVirginiaNew YorkMichigan, and Washington State.  (Click on these links for additionalinformation.)

The announcement of the listening sessions also included an opportunity for an individual meeting. Instructions on arranging an individual meeting is below.

If anyone would like an individual meeting, Agralytica staff will be available at the above locations. To arrange a time, contact Andre Williamson by cell at 240-432-0308 or by email at awilliamson@agralytica.com. Alternatively, anyone who cannot attend can submit e-mailed comments. Please us “Apple policy” as your subject line.

Feel free to contact me with any additional questions you may have.

 

 

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