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RMA Announces Financial Assistance Program
Attention growers in Connecticut, Delaware, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, West Virginia, and Wyoming
The Risk Management Agency (RMA) has announced the availability of Financial Assistance to producers purchasing buy-up crop insurance policies. Growers must have buy-up coverage or apply for buy-up coverage by the applicable sales closing dates to qualify for the assistance. Crops with sales closing dates prior to February 21, 2003 and nursery policies signed prior to February 21, 2003 are not eligible for 2003 Financial Assistance. Growers should contact their local Rain and Hail agent now to ensure they are taking full advantage of crop insurance subsidies and Financial Assistance.
Most growers currently purchasing buy-up coverage should be able to significantly increase their crop insurance coverage without any additional out of pocket expense above last year. Growers moving from catastrophic coverage (CAT) to buy-up coverage can significantly increase coverage in force-82% change in coverage from CAT to minimum buy-up coverage level of 50/100.
Below is a table of the potential premium subsidy and Financial Assistance that will be provided to qualifying growers for the 2003 crop year. Additional state subsidies may be available in limited areas. The total of all subsidies and Financial Assistance will be limited to 90% of the base premium. Your Rain and Hail agent can assist you with crop insurance premium quotes to assess the impact of subsidies and Financial Assistance on your farm specific coverage.
Coverage Level |
Premium Subsidy Percentage |
Grower Portion Prior to FAF |
Financial** Assistance Factor (FAF) |
Financial Assistance Percentage |
Government Portion of Premium |
Grower Portion of Premium |
50% |
67% |
33% |
.10 |
3.3% |
70.3% |
29.7% |
55% |
64% |
36% |
.15 |
5.4% |
69.4% |
30.6% |
60% |
64% |
34% |
.29 |
7.2% |
71.2% |
28.8% |
65% |
59% |
41% |
.30 |
12.3% |
71.3% |
28.7% |
70% |
59% |
41% |
.40 |
16.4% |
75.4% |
24.6% |
75% |
55% |
45% |
.50 |
22.5% |
77.5% |
22.5% |
80%* |
48% |
52% |
.50 |
26.0% |
74.0% |
26.0% |
85%* |
38% |
62% |
.50 |
31.0% |
69.0% |
31.0% |
*Where available. |
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