Funding Opportunities at the

Risk Management Agency

Craig Witt

Risk Management Education Director

July 26, 2003

Risk Management Agency

• Established in 1996 from Federal Crop Insurance Corporation.

• Operate the Federal Crop Insurance Program in partnership with private insurance companies.

• Relatively small USDA agency– 10 Regional Offices– 6 Compliance Offices– Research and Development Office

Key Funding Development

• Agricultural Risk Protection Act of 2000 (ARPA)

• ARPA:– Substantial research and education funding– Authorization of innovative programs, i.e.

livestock insurance, Agricultural Management Assistance

– Higher crop insurance subsidies– Stronger compliance

Federal Crop Insurance Coverage

0

5

10

15

20

25

30

35

40

45 Liability - $ billions

RMA Funding Opportunities1. Research

a. Contracting *

b. “508h” - $10m/y

c. Research Partnerships *

2. Educationa. Commodity Partnerships *

b. Targeted States - $5m/y

c. RME Grants (through CSREES) - $5m/y

3. Outreach a. Outreach Partnerships *

* From a fund of $20m/y

Research Funding Opportunities

• Contracting – Ongoing feasibility studies for insurance products– Ongoing development of new insurance products

• “508h”– Reimbursement for new product development costs

• Research Partnerships– Agreements to develop new risk management tools– RFA for $4m due July 28, 2003

RMA Education Funding Opportunities

• Commodity Partnerships

• Targeted States

Common Features:“Commodity Partnerships”and “Targeted States”• 2003 RFA due July 28, 2003• Cooperative Agreements - Not Grants

– substantial involvement of RMA

• Tasks– Finalize RME delivery plan

– Assemble instructional materials

– Conduct promotion program

– Conduct education activities

– Document results

“Commodity Partnerships”• National Scope

• Education emphasis on Production, Marketing, and Financial

• Priority for producers of:– Crops not covered by crop insurance– Specialty crops– Under-served commodities

• Funding determined by RMA administrator

• 2002 - 72 Agreements for $3.7 million

• 2003 - 39 Agreements (max) for $3.5 million

“Targeted States”• Restricted to 15 States (12 NE and 3 Mountain

States)

• Restricted to Crop Insurance Education

• Supported by the Agricultural Management Assistance program

• Funding up to $5 million per year

• 2002 - 13 Agreements for $1.8 million

• 2003 - 15 Agreements (max) for $4.25 million

Program Results• Substantial partnering among key stakeholders.

• More than 49,000 producers reached during 2002.

• Documented increase in producer awareness of risk management tools and their use.

• Documented increase in the use of risk management tools, especially crop insurance. (i.e. Targeted States insurance coverage will exceed $1 b for the first time in 2003)

• Success stories (i.e. Pennsylvania)

“Outreach Partnerships”

• National Scope• Emphasis on meeting the needs of small,

limited resource, and minority producers.• Funding determined by RMA administrator• 2002 - 46 Agreements for $3.7 million• 2003:

– Request for Applications due August 1 for $3.5 million

www.rma.usda.gov