The USDA's Risk Management Agency has published a proposed rule in the Federal Register that would reward farmers participating in the federal crop insurance program for good performance. Under the proposed program, payment amounts would vary by producer and will be based on each qualified producer's history in the program.
RMA estimates that the average refund amount per producer this year will be about $1,000. The first year of the proposed program will use data from 2009 and prior crop years because not all 2010 data is finalized. . It is estimated the proposed program would benefit farmers and ranchers in over two-thirds of counties nationwide.
The Ag Department points out, this proposed program will use savings realized from the Obama Administration's recent Standard Reinsurance Agreement negotiated between the Federal Crop Insurance Corporation and the private insurance industry. The proposed rule in the Federal Register has a 15-day comment period that ends January 21, 2011.