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PIA Members in North Dakota Criticize Crop Premium Discount Plan

Some PIA members along with the North Dakota Farm Bureau are criticizing a federally approved crop insurance program. On February 13, the US Department of...
March 2, 2004

Some PIA members along with the North Dakota Farm Bureau are criticizing a federally approved crop insurance program. On February 13, the US Department of Agriculture's Risk Management Agency (RMA), which oversees federally-backed crop insurance, approved Crop 1 to offer its Premium Discount Plan. All federally subsidized insurance companies are required to charge farmers the same rate for crop coverage. But with Congress' approval, the new discount program is being offered by the RMA to stimulate competition in the crop insurance industry.

PIA of North Dakota executive vice president Kent Olson, in an interview with the Associated Press, said the Premium Discount Program may not be as good as it is being billed. PIA member Larry McGillis said many companies charging full rates for crop insurance coverage are losing money in the region."The industry here is very fragile. We want more companies to move in, but they have to be financially strong and good service providers," McGillis said.
We invite PIA members in all states concerned with crop insurance issues to share their concerns and pass along developments as we prepare to present issues to the USDA's Risk Management Agency (RMA). Contact Kellie Bray kelliebr@pianet.org at PIA National.

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