USDA announces that the Risk Management Agency's (RMA) Standard Reinsurance Agreement (SRA) and Aquatic Crop Reinsurance Agreement (ACRA) will remain in effect for the 2004 reinsurance year. SRA and ACRA define the terms of reinsurance between RMA and the companies participating in the crop insurance program.
The Agricultural Risk Protection Act of 2000 permits the reinsurance agreements to be negotiated at the discretion of USDA once during the 2001-2005 reinsurance years. The renegotiated SRA and ACRA then would be in effect indefinitely or until new legislation comes into force.
“The Agricultural Risk Protection Act of 2000 provided important risk management tools for farmers,” says Agriculture Secretary Ann M. Veneman. “Deferring the negotiations will give all parties more time to evaluate ways to improve program effectiveness and reinforce the strong foundation required for even more effective risk management in the future.”
USDA is expected to announce next year that it will seek renegotiation of SRA and ACRA, which would become effective with the 2005 reinsurance year.