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RMA/USDA Logo
Saturday, October 30, 2004

Contractors Selected for Research and Development

Risk Management Agency Program Announcement

Contact: Eric Edgington (202) 690-2539
Eric_Edgington@wdc.usda.gov

Washington, DC, February 16, 2001 -- The Risk Management Agency (RMA) announced the award of four contracts to help develop new plans of crop insurance for currently insured crops, new crop policies, and new types of risk management programs. The four contractors are: Agrilogic, Inc.; IGF Holdings, Inc.; National Crop Insurance Services, Inc.; and Watts and Associates, Inc.

The Agricultural Risk Protection Act of 2000 (ARPA) requires the research and development of new risk management programs through partnerships and contracts. Annual funding for the initiative may reach $20 million per year through fiscal 2003 and $25 million per year thereafter. Contractors were selected by a competitive process announced in August 2000.

Farming is in a constant state of flux. Farmers are experimenting with new crops, varieties, and a wide range of technological advances that require analysis and adjustments to current crop insurance programs, as well as development of new types of policies. Further, specialty crops that are currently not insurable only have a low-level of predictable disaster assistance available to them through the non-insured crop disaster assistance program (NAP). This fact, along with rising production costs, declining prices, and improvements to the crop insurance program have increased the demand for new programs. It is anticipated that contracting out new product development will accelerate the development of new policies and innovations. The companies selected will help develop new products using these tentative priorities:

  • Pasture, Rangeland, and Forage Program
  • Cost of Production Policy
  • Revenue Coverage Plans (report)
  • Multi-Year Coverage (report)
  • California Fresh Vegetables
  • Cotton Quality Adjustment
  • Cotton Boll Weevil Eradication (study)
  • Tropical Crops & Trees
  • Coverage for Direct-Marketed Crops
  • Organic Crops (report)
  • Silage Sorghum Program (insure dual-purpose sorghum harvested as silage)

 
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Last Updated: Thursday, 15-Feb-2001 23:00:00 Central Standard Time