Source: USDA

Agriculture Secretary Tom Vilsack announced that as of July 12, 2010, USDA's Risk Management Agency (RMA) received signed 2011 Standard Reinsurance Agreements (SRA) from all 16 private insurance companies who participated in the federal crop insurance program during the 2010 crop year, formally ending the negotiation process which has been underway since December 2009. The new SRA negotiated by USDA is projected to achieve $6 billion in savings over the next 10 years, two-thirds of which will go toward paying down the federal deficit while the remaining third will support high-priority risk management and conservation programs.

"The new agreement that we have now finalized lays the foundation for a more sustainable federal crop insurance program, reduces the federal deficit, and improves the farm safety net for producers by providing incentives for companies to sell policies in all areas so that farmers and ranchers across the country can access these critical risk management tools," said Vilsack. "USDA appreciates the efforts of the companies to negotiate a new agreement in good faith, with straightforward and constructive dialogue to develop an agreement that works for the companies, producers and taxpayers."

Original press release