USDA Risk Management Agency (RMA) Administrator Bill Murphy announced this week that RMA is updating the methodology by which they calculate rates paid by agricultural producers for crop insurance. The RMA says the changes will lead to lower insurance rates for many corn and soybean producers, who will see an average premium decrease of 7 percent and 9 percent, respectively, beginning in 2012.
The updates, he says, were made to more accurately reflect current risks and to recognize the latest technology, weather and program performance information. Such updates to the formula are conducted periodically by RMA to ensure actuarial soundness. (Contact: Brad McKinney)