2002 News Archive

December 2002

• SRA to Remain in Effect -- December 31 --RMA's Standard Reinsurance Agreement (SRA) will continue in effect for the 2004 reinsurance year.
  
• SRA Amended to Include AGR-Lite Policies -- December 27 -- The Standard Reinsurance Agreement (SRA) was amended to reinsure AGR-Lite policies for the 2003 reinsurance year.
• Cost-Share Programs Offered for AGR, AGR-Lite -- December 27 -- Cost-share assistance for 2003 AGR and AGR-Lite policies in selected counties in 11 targeted states.
  
• Transferred -- December 19 -- RMA Administrator Ross J. Davidson, Jr., announced procedures to transfer all crop year 2003 policies written by American Growers (American Agrisurance) to other reinsured companies.
  Related Items: What's Hot | Agent Locator
• A Holiday Message -- December 19 -- "As we sit down together to enjoy the season, I ask you to remember America's farmers and ranchers whose hard work, dedication and even sacrifice allow us to celebrate with bounteous tables this and every year."
  --Ross J. Davidson, Jr., Administrator
• Convicted -- December 18 -- In a landmark case, a prominent ND crop insurance agent and large policyholder, controlling thousands of acres, was convicted of 19 felony counts and subject to asset forfeiture of $5.9 million. The Northern Regional Compliance Office participated in the investigation and provided testimony in the criminal trial.
• Now Selling: AGR-Lite -- December 18 -- The new AGR-Lite program, available in most PA counties for the 2003 crop year, covers all commodities including animals and animal products. The sales closing date is January 31, 2003. Interested producers should contact an insurance agent.
  Related Items: Basic policy | Underwriting rules | AGR-Lite Handbook | Draft Manual 13 Requirements | Special Provisions | Premium Calculator
• Indemnities Continue Steady Rise -- December 17 -- Loss payments to producers rose $187 million last week, not totalling $2.548 billion for the crop year to date.
  Related Items: Indemnities map
• MOU Signed -- December 10 -- The Nebraska Department of Insurance announced steps to ensure timely service to producers.
• Harvest Prices Announced -- December 9 -- RMA has announced harvest prices for cotton, corn and grain sorghum under four plans of insurance: CRC, RA, IP, and GRIP.
  Related Items: 2003 Crop Policies Page
• Loss Payments Continue to Climb -- December 3 -- Loss payments to producers rose over $101 million last week, totalling $2.2 billion for the crop year to date.
  Related item (pdf file): Indemnity map
  
• $18.5 M in Partnership Agreements Awarded -- December 2 -- Agriculture Secretary Ann Veneman announced the awarding of $18.5 million in RMA partnership agreements to provide new ways for producers to manage risks to their businesses and for education opportunities for limited-resource and underserved farmers and ranchers.
  Related Items: R & D agreements | Education agreements | Outreach agreements | Agreements page
  

November 2002

• Selected Renewals OK'ed -- November 27 -- RMA and the Nebraska Department of Insurance announced that American Growers will renew Federal crop insurance policies that have a sales closing date of November 30.
  
• USDA's Risk Management Agency Appoints Director of External Affairs -- November 27 -- RMA Administrator Ross Davidson announced the appointment of Ann Jorgensen as Director of External Affairs.
  
• 2003 Risk Management Writing Contest -- November 26 -- RMA, in cooperation with the national Future Farmers of America (FFA), announces its annual Risk Management Writing Contest. Essays are due to FFA by January 31, 2003.
  
• Payments Guaranteed -- November 25 -- Despite Acceptance Insurance Companies' recent losses, RMA Administrator Ross J. Davidson said today, "Our goal is to have all claims paid in full and on time."
  
• Revenue Insurance Approved for PA -- November 22 -- RMA announced approval of a pilot insurance plan that will allow Pennsylvania farmers to insure a portion of the revenue they make from crops and some animals and animal products.
  
• Payments Inch Closer to $2B -- November 21 -- Loss payments to producers rose nearly $113 million last week, now totaling $1.966 billion for the crop year to date.
  Related item (pdf file): Indemnity map
  
• CIO and CFO Needed -- November 15 -- RMA seeks qualified candidates to fill two critical positions. The CIO will be responsible for overseeing information technology support for both Washington and its field locations. The CFO will be responsible for planning, organizing, and ensuring the accuracy of agency financial functions. These challenging Washington, DC-based positions are open to everyone and close December 2, 2002.
  Related items: CIO Job Summary | CFO Job Summary
  
• Payments Near $2B -- November 14 -- Loss payments to producers increased over $154 million last week, now totaling more than $1.853 billion for the 2002 crop year to date.
  Related item (pdf file): Indemnity map
  

October 2002

• More Time -- October 28, 2002 -- Due to the high level of interest and requests for additional time, RMA is extending the comment period on a proposed rule to change the common crop insurance policy. The new deadline is November 12, 2002. (pdf file)
  Related item : Original proposed rule
  
• Board Implements AGR-Lite -- October 28, 2002 -- At its October 22, 2002, meeting, the FCIC Board of Directors voted to implement the Adjusted Gross Revenue-Lite plan of insurance to offer whole farm protection beginning with the 2003 crop year in all counties in Pennsylvania except Philadelphia county.
  Related item: Other October 22 actions
  
• Payments Rise -- October 28, 2002 -- Loss payments to producers increased over $115 million last week, now totaling more than $1.586 billion for the 2002 crop year to date.
  Related item (pdf file): Indemnity map
  
• Associate Appointed -- October 25, 2002 -- David Hatch was appointed as RMA's new Associate Administrator.
  
• Indicted -- October 24, 2002 -- Working together for the first time, RMA and the Georgia State Bureau of Investigation collaborated to produce an indictment for filing a false insurance claim.
  
• Secretary Highlights Crop Insurance -- October 21, 2002 -- "The Federal crop insurance program is working and providing much needed risk protection for our nation's farmers and ranchers." Agriculture Secretary Ann M. Veneman
  Related item (pdf file): Transcript
  
• Sales Closing Date Nears -- October 9, 2002 -- October 31 is the last chance for many producers to sign up for or change their crop insurance protection.
  
• Loss Payments Grow -- October 8, 2002 -- Loss payments to producers increased $116 million last week, now totaling over $1.27 billion for the 2002 crop year to date.
  Related item (pdf file): Indemnity map
  
• Payments Jump $143 Million -- October 3 -- Loss payments to producers increased $143 million last week, now totaling $1.15 billion for the 2002 crop year to date. Related item (pdf file): Indemnity map
  

September 2002

• RMA Expands Pilot Pecan Insurance Program -- September 26 --
  On September 19, 2002, the FCIC Board of Directors voted to expand the pilot pecan program into 79 additional counties in Georgia for the 2003 crop year. The pilot will also be converted to a permanent program effective for the 2004 crop year.
  Related items (all pdf files): Pecan Program board document | Expansion of Pecan Program board document | Other September 19 actions
  
• $1 Billion and Rising -- September 24 -- Heading into harvest, loss payments to hard-hit farmers surged from about $830 million to over $1 billion last week.
  
• RMA Administrator Testifies -- September 24 -- "For this crop year, the (Federal Crop Insurance) program is expected to provide an estimated $38 billion in risk protection through nearly 1.3 million policies covering over 212 million acres." --RMA Administrator Ross Davidson, September 18, 2002.
  Related items: Testimony charts (pdf file) | Agriculture Secretary's statement
  
• Indicted -- September 24 -- A federal grand jury in Minneapolis recently brought charges against the former management of a Minnesota grain elevator for allegedly enticing North Dakota producers to sell durum wheat at discounted prices and falsifying scale tickets. RMA's Northern Regional Compliance Office assisted in the investigation.
  
• September 30 Sales Closing Date Nears -- September 23 -- September 30 is the last chance for many producers to sign up for or change their crop insurance protection.
  
• FCIC Board to Meet -- September 19 -- The FCIC Board of Directors will meet September 19, 2002, in Kansas City, MO. Topics under consideration include an expansion of the pecan revenue insurance program, and resolutions to approve payments for research and development costs for LRP, LGM, NBMP, and Hybrid Seed Corn Price Endorsement.
  Related item: Agenda (pdf file)
  
• Success! -- September 18 -- RMA Administrator Ross Davidson signed a proposed rule that will implement key elements of the Agricultural Risk Protection Act (ARPA) and other provisions to strengthen weaknesses in the standard provisions of crop insurance policies. Comment period on the proposal runs through October 18, 2002.
  Related item: Regulation (pdf file)
  
• Compliance Report Submitted to Congress -- September 17 -- RMA has submitted the first annual report on Program Compliance and Integrity to Congress. The report finds that compliance efforts achieved estimated cost savings of about $94 million during the period of October 2000-December 2001.(pdf file)
  
• New Price Elections Announced -- September 16 -- Additional price elections for wheat, barley, and oats were announced for the 2003 crop year. (pdf file)
  
• Remembering 9/11 -- September 10 -- RMA joins with President Bush in remembering and honoring the extraordinary sacrifices made by ordinary people on the first anniversary of the tragedy and our first observance of Patriot Day.
  
• Associate Appointed -- September 9 -- Byron Anderson was appointed as RMA's new Associate Administrator.
  
• "We've Got A Very Health Crop Insurance Program" -- September 9 -- Keith Collins, USDA Chief Economist, September 3, 2002.
  
• Common Crop Insurance Regs Amended -- September 9 -- The FCIC has published an interim rule, effective August 28, 2002, amending the Common Crop Insurance Regulations, Sunflower, Coarse Grains, Safflower, Dry Pea, Rice, and Dry Bean Crop Insurance Provisions to implement the quality loss adjustment procedures contained in section 10003 of the Farm Security and Rural Investment Act of 2002. The comment period runs through October 29, 2002.
  
• Raisin Harvest to Be Monitored -- September 4 -- To help ensure program integrity, RMA will be monitoring the lay-down of raisins beginning September 9. Monitoring will be conducted from the air and on the ground. Efforts will continue through October 20, 2002. Related item: Raisin policy (pdf file)
  

August 2002

• Peanut Program Changes -- August 21 -- Changes enacted by the 2002 Farm Bill will significantly affect administration of the peanut crop insurance program. RMA has issued guidelines for implementing those changes for 2002. Related items: Peanut price announcement | FSA peanut buyout program
  
• Top Priorities -- August 15 -- President Bush requests expedited forage, pasture, and livestock risk management tools.
  
• Forage and Livestock Overview -- August 15 -- A blistering drought has increased interest in the programs, pilots, and feasibility studies RMA is running on these commodities.
  
• Sugarcane Final Rule Published -- updated August 15 -- RMA has published a rule finalizing the crop provisions for sugarcane insurance to provide policy changes that better meet the needs of insureds. The changes will apply for 2004 and subsequent crop years.
  

July 2002

• Written Agreement Criteria to Remain in Effect -- July 31 -- RMA announced that current written agreement criteria for the 2003 crop year will remain in effect until revised criteria is approved by the Board of Directors. Please consult the 2003 Crop Insurance Handbook, the 2001 Written Agreement Handbook, and Managers Bulletin 02-001 for procedures to be used in requesting, reviewing, and approving or rejecting written agreements.
  
• AGR Crop Insurance Program Expanded to CA and PA -- July 25 -- RMA's Federal Crop Insurance Corporation (FCIC) Board of Directors approved expansion of the Adjusted Gross Revenue (AGR) pilot program to 8 counties each in California and Pennsylvania beginning in insurance year 2003. The expansion, as required by the Farm Security and Rural Investment Act of 2002, makes the AGR pilot program available in a total of 18 States and 230 counties.
  
• Sugarcane Final Rule Published -- July 17 -- RMA has published a rule finalizing the crop provisions for sugarcane insurance to provide policy changes that better meet the needs of insureds. The changes will apply for 2003 and subsequent crop years.
  
• Nolan County Producer Sentenced -- July 17 -- A Nolan County, TX producer was sentenced to 41 months imprisonmentand ordered to pay $234,656 in restitution to USDA following his April federal conviction on charges involving crop insurance fraud. RMA's Southern Regional Compliance Office assisted in the case.
  
• Interim Rule Amends Common Crop Insurance Regulations -- July 15 -- -- RMA has published an interim rule amending the Common Crop Insurance Regulations, Small Grains Crop Provisions and Canola and Rapeseed Insurance provisions to implement quality loss adjustment procedures. Effective date for the rule was June 28, 2002.
  Related item: Informational Bulletin
  
• LRP Insurance Now Available -- July 10 -- Beginning July 8, Iowa livestock producers may purchase livestock risk protection (LRP) insurance under a pilot program designed to protect against declining hog prices. Livestock gross margin insurance sales begin July 15. Iowa producers should contact their insurance agents for further information and availability.
  
• RMA Announces $2 Million for Research Partnerships -- July 1 -- USDA's FCIC today announced the availability of at least $2 million in funds for partnership agreements to develop risk management products and services. Deadline for applications is August 15, 2002.
  Related item: Application kit

June 2002

• RMA Announces $1 Million for Outreach and Assistance -- June 20 -- USDA's FCIC today announced the availability of $1 million in funds for cooperative agreements used to provide under-served agricultural producers with the knowledge, skills, and tools necessary tomake informed risk management decisions for their operations. The applications deadline is July 19, 2002.
  Related item: Application kit
• Deadline Extended for Summerfallow -- June 17 -- To help reduce soil erosion, RMA will allow summerfallow crops in 11 Montana counties to remain in fields until July 15, 2002.
  
• Top Price Elections Announced -- Updated June 11 -- Additional price elections for selected crops were announced. Insured producers growing these crops will be contacted by their insurance providers.
  Related items: Market price elections (pdf file) | Additional price elections (pdf file) | Revision to Additional Price Elections for Certain 2002 Crop Year Crops (pdf file)
  
• Chief Economist Testifies -- June 4 -- USDA Chief Economist and FCIC Board Chairman Keith Collins testified at a Senate hearing on the need for disaster assistance. "There is now a solid safety net protecting farmers from both adverse price changes and natural disasters."
  
  

May 2002

• Top Price Elections Announced -- May 29; Updated June 11 -- -- Additional price elections for selected crops were announced. Insured producers growing these crops will be contacted by their insurance providers.
  Related items: Market price elections (pdf file) | Additional price elections (pdf file) | Revision to Additional Price Elections for Certain 2002 Crop Year Crops (pdf file)
  
• CFTC Finds Against Two DOPP Brokers -- May 22 -- The Commodity Futures Trading Commission (CFTC) issued orders against two Dairy Options Pilot Program brokers.
  Related item: Prohibited trading practices memo (pdf file)
  
• More Water in the Works -- May 21 -- A recent announcement by the Mexican government indicating that it will pay off its water debt is encouraging to many south Texas farmers. Because several regions of the country are enduring drought or facing water shortages, producers need to be aware of relevant requirements.
  Related items: Irrigation Issues | Water Watch
• President Signs Farm Bill -- May 15 -- President George W. Bush signed "The Farm Security and Rural Investment Act of 2002" into law on May 13, 2002.
  Related items: USDA web cast | USDA Farm Bill page | RMA Farm Bill page
• Nolan County Producer Guilty of Crop Insurance Fraud -- May 15 -- A Nolan County, TX., producer was convicted in April on 22 charges of filing false crop insurance claims. The producer is the sixth person convicted in connection with crop insurance fraud in the county, stemming from a 2001 case involving an insurance adjuster. RMA's Southern Regional Compliance Office assisted in the case.
  Related items: West Texas Adjuster Pleads Guilty | Trail Blazing
• FCIC Amends Appeal Procedure Regulations -- May 8 -- The Federal Crop Insurance Corporation (FCIC) has amended its appeal provisions to the Federal crop insurance program, effective April 22, 2002. The regulation details appeal procedures and gives insureds new rights of appeal.
  Related item: Appeals Regulation
• USDA Announces $ 4 Million for Risk Management Education -- May 1 -- USDA's Federal Crop Insurance Corporation, operating through RMA, announces availability of $4 million and a Request for Applications (RFA) for two risk management educational programs, each funded at $2 million for FY 2002. The programs will result in agreements with RMA for assembling risk management curricula, raising awareness of risk management tools, and providing risk management education to ag professionals. The applications deadline is June 3, 2002.
  Related item: Application kit for targeted commodities | Application kit for targeted states

April 2002

• Secretary Announces FFA Essay Contest Winners -- April 26 -- Agriculture Secretary Ann M. Veneman announced the 10 winners in the fifth annual, RMA-sponsored 2002 Risk Management Strategies Writing Contest. The winners and their FFA sponsors visited Washington April 25-26. Related item: List of winners
• RMA Extends Irrigation Guidelines -- April 23 -- RMA has extended previously published irrigation guidelines to insurance providers (Manager's Bulletin 02-007. Related item: FAD-008 | Definition of prevented planting
• On "Board" -- April 26 -- Agriculture Secretary Ann M. Veneman swore in six new board members (four producers and two insurance executives) at the April 11 FCIC Board meeting.
  Related item: Photo of board members | FCIC board page
• Register Now for Train-the-Trainer Conference -- April 22 -- RMA will host an Agricultural Risk Management Education for Small, Limited-Resource and Socially Disadvantaged Producers conference April 30-May 2 in Atlanta, GA. Ag professionals will learn about production, marketing, human resources, legal, and financial risks.
  

March 2002

• Survey Says.... -- March 20 -- A recent survey of 800 soybean farmers across the U.S. produced some surprising results.
  Related item: Survey information (pdf file)
• Secretary Names Six to FCIC Board -- March 8 -- Four producers and two insurance executives were named to the FCIC Board. The next scheduled official Board meeting is April 11.
  
  
• Use of Revenue Products Soars -- March 7 -- Producers increased their crop insurance coverage significantly in 2001 and bought higher levels of coverage due to increased premium subsidies.
  Related items: Revenue programs chart (pdf file) | Program participation chart (pdf file)
  
• New RMA Administrator On Board -- March 7 -- Ross J. Davidson has joined the Risk Management Agency as administrator. Senior managers of the crop insurance industry will have the opportunity to meet with the new adminstrator at an industry meeting in Kansas City on March 27-28.
  
  Related item: Industry meeting (pdf file)
  
• Definition of "Prevented Planting" Finalized -- March 7 -- RMA issued a final determination of the definition of "Prevented Planting" as the "failure to plant the insured crop...designated in the Special Provisions for the insured crop in the county..."
  
  

February 2002

• Feb. 28 and Mar. 15 Sales Closing Dates Near -- February 22 -- USDA's Risk Management Agency reminded producers of the February 28 and March 15 sales closing dates for crop insurance. These sales closing dates apply to most of the spring-planted crops in the U.S.
  
• Acting Administrator Testifies -- February 14 -- "RMA has launched all initiatives required by ARPA while administering a program that has tripled in size over the last decade." -- Phyllis W. Honor, Acting Administrator
• Survey To Target Specialty Crop Producers -- February 14 -- A unique new survey, part of a research partnership between RMA, NASS, and several land grant universities, will provide the data necessary to develop crop insurance products or programs targeted to specialty crop producers.
• FCIC Approves N-BMP Insurance Plan -- February 14 -- A pilot Nutrient Best Management Practice (N-BMP) insurance plan, recently passed by FCIC, will provide protection to corn producers in IA, MN, PA, and WI from the risk that a BMP fertilizer recommendation fails to produce the expected yield.
• New RMA Administrator Announced -- February 6 -- Secretary Veneman today named Ross J. Davidson, Jr., as the Administrator of RMA.
• 2003 Budget Overview -- February 5 -- The President's FY 2003 budget released yesterday included $2.8 billion to fund the Federal crop insurance program. RMA's administrative and opeating expenses are proposed at $76.1 million, a decrease from FY 2002.
  USDA/RMA budget (see page 99)
• Sec. Veneman Commends RMA Employees -- February 5 -- Ag Sec. Ann Veneman praised RMA employees on their farmer-friendly implementation of the Agricultural Risk Protection Act of 2000 (ARPA). RMA is in its second year of delivering this innovataive $8.2 billion risk management reform package. Related item: Jan. 30 speech

January 2002

• 2002 Ag Outlook Forum: Securing Global Markets -- January 30 -- The 2002 Ag Outlook Conference, which features a keynote address from Secretary Veneman, will spotlight 2002 farm prospects, trade and agricultural policy, and international acceptance of biotech crops. Part of this year's program will be webcast. The conference will be held February 21-22 in Arlington, VA.
• We Need Your Input -- January 18 -- RMA is requesting input from vegetable/flower, lawn seed, sesame, and melon producers to increase participation by underserved producers in the Federal crop insurance program. The input is critical in determining the need and direction of future research and development.
  Vegetable/Flower Seed (PDF file) | Lawn Seed (PDF file) | Sesame (PDF file) | Melon (PDF file) | Christmas trees (PDF file)
• Mail Delay -- January 17 -- Incoming first-class mail to RMA received between Oct. 1 and Nov. 14, 2001, beginning with zip codes 202-205 has been destroyed due to possible anthrax contamination. If you sent us first-class mail during that time, please resend it. Time-sensitive mail should be sent using other mail delivery services or by fax or e-mail. First-class mail is being delayed a month or more because it must be irradiated off-site. Thank you for your patience.
• Price Election Flexibility for 2002 Spring Crops -- January 16 -- RMA announced that it would provide additional flexibility to producers on price elections due to ongoing farm bill deliberations.
  
• Written Agreements Reaffirmed -- January 16 -- RMA will continue to process written agreements for the 2002 crop year. Changes are likely for the 2003 crop year.
  
• We Need Your Input -- January 16 -- RMA is requesting input from vegetable/flower and lawn seed producers to increase participation by underserved producers in the Federal crop insurance program. The input is critical in determining the need and direction of future research and development.
  Vegetables/Flowers | Lawn Seed (PDF files)
• Actuary Needed -- January 11 -- This challenging, non-supervisory position allows you to do unique, cutting-edge work. It offers the right candidate a competitive salary plus a possible one-time bonus, good benefits, and relocation assistance. The application deadline is February 20, 2002.
  
• New Sheriff in Town -- January 11 -- Robert Crockett, RMA's new Sanctions Officer, is an old hand at crop insurance who will be applying new sanctions to those who abuse the crop insurance program.