America’s World-Class Crop Insurance Continues to Grow
March 8, 2023

Now well into 2023, we can look back at the previous year with pride that we were able to meet many of its challenges. I would like to reflect upon a strong and well-run crop insurance program that is the envy of the world thanks to all of you.

The growth of Federal crop insurance has been phenomenal over the last two decades with the program now providing almost $200 billion in protection for more than 600 crops compared to about $30 billion in protection for roughly 300 crops in 2000. The tremendous growth is due in large part to the hard work of our team, stakeholders, agents and adjusters, and countless others who gave time and effort to making sure farmers have the tools and training they need.

One key reason for success of the program is the confidence taxpayers have in it. Last year, the program’s improper payment rate was 2.58 percent, which makes the eighth straight year of maintaining an improper payment rate below 3 percent – this program continues to have one of the lowest improper payment rates in government, and we plan to keep it that way. This low rate is a testament to producers, agents, companies, and our dedicated team.

Federal crop insurance has grown steadily over the last 20 years,

offering coverage options for more than 600 commodities today

Another key contributor to the growth of the program is responsiveness both in terms of payments and policy enhancements. When disaster strikes, farmers receive payments within weeks or months rather than years. As a farmer myself, I know firsthand how vital it is for a farm to have this certainty. It’s not only vital for farmers but all those who serve them in rural communities across America. Main street in rural America benefits greatly from the certainty crop insurance provides – from the input suppliers to the local clothing store – crop insurance ensures a natural disaster does not devastate an entire community. In addition, this year RMA provided data to support a quicker and simplified disaster relief program that made sign up easier for producers and county offices.

Similarly, the program has been incredibly responsive as indicated by the tremendous growth. From cucumbers to cattle – the program has grown to cover just about everything. Just last year, we made key changes to several policies based on direct producer feedback such as expanding revenue protection to oat and rye growers and expanding eligibility for our Whole-Farm Revenue Protection and Micro Farm policies.

We’re also responsive to what is happening in the world around us. In response to the War in Ukraine, we took steps to help boost production we simplified sign-up for double cropping coverage and expanded its availability in about 1,500 counties for the 2023 crop year. These efforts will help enable agricultural producers to have coverage on two crops on the same land each year, such as spring planted soybeans or grain sorghum following the harvest of a crop such as winter wheat.

In the past year, we have worked diligently to ensure the crop insurance program works well for all producers, especially underserved producers. In 2021 and 2022, RMA invested almost $6.5 million in partnerships with 27 organizations to provide risk management education as well as to train and equip the next generation of crop insurance agents, adjusters, and outreach educators about crop insurance options. At RMA we care about our work and serving producers. It shows as we were named USDA’s Best Place to Work in the Federal Employee Viewpoint Survey for a third year in a row.

But we are far from finished. As Administrator, I have traveled from California to Connecticut and have met with everyone from corn farmers to oyster farmers. The program still has growth potential, and we always remind our customers that RMA is here to listen.

– Marcia

Marcia Bunger is the Administrator of USDA’s Risk Management Agency (RMA). Prior to her appointment, she served as a County Executive Director for USDA’s Farm Service Agency. A native South Dakotan, Bunger is also the owner and operator of a 2000-acre farm, a cum laude graduate of Augustana College, and the first member of the Asian American and Pacific Islander community and first woman to serve as RMA Administrator.