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RMA Works to Lower Improper Payment Rate
USAgNet - 07/29/2016

The federal crop insurance program is proving to be financially effective and productive, but the Risk Management Agency is still looking for ways to improve, including reducing its already very low improper payment rate. In a meeting with reporters, RMA Administrator Brandon Willis stated that although the improper payment rate for Fiscal Year 2015 was 2.2 percent, which is down significantly from the FY 2014 rate of 5.58 percent and almost half of the 4.39 percent rate for all government programs, the agency is expanding its use of data mining and spot-checks of crop insurance agents and adjustors to help identify improper payments.

Administrator Willis also discussed the recent growth in the program, as measured by coverage options. Specifically, the crop insurance program has doubled from 2009 to 2016, with an increase of 64,000 coverage options to 118,000 options covering 543 varieties of crops.

According to the National Association of Wheat Growers, liability through the program also increased from $79.5 billion in 2009 to $102.4 billion today. Wheat, at $8.4 billion, comprises 8.2 percent of that total.

Earlier in July, RMA also stated in a press release that other programs included in the 2014 Farm Bill, such as Supplemental Coverage Option and the APHS Yield Exclusion have been successful in helping farmers expand protection of their crops. The RMA's expansion of these programs has led to a reliable farm safety net keeping producers strong and protected.


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