Risk Management Agency
The Risk Management Agency (RMA) of the U.S. Department of Agriculture helps producers manage their business risks through effective, market-based risk management solutions. RMA's mission is to promote, support, and regulate sound risk management solutions to preserve and strengthen the economic stability of America's agricultural producers. As part of this mission, RMA operates and manages the Federal Crop Insurance Corporation (FCIC). RMA was created in 1996; the FCIC was founded in 1938.
RMA employs approximately 530 people in offices around the country. The administrative budget is nearly US$79 million (FY 2008). Meanwhile, the size of the program has grown tremendously. In FY 2008, RMA is estimated to have managed nearly US$90 billion worth of insurance liabilities.
RMA Administrator William J. Murphy was appointed in July 2009. He also serves as the manager of the FCIC. Located within the Office of the Administrator are the Director of External Affairs, the Director of Civil Rights and Outreach, the Director of Program Support and Chief Information Officer, the Chief Financial Officer, and the Secretary to the Board of Directors of the FCIC.
The agency currently has three divisions: Insurance Services, Product Management, and Risk Compliance. Insurance Services Division is responsible for program delivery (e.g., managing the contracts with the companies that sell and service the policies), and local program administration and support. Product Management is responsible for overseeing product development. Risk Compliance monitors compliance with program provisions by both producers and the insurance companies that sell and services policies.
RMA, via the FCIC, provides crop and livestock insurance to American producers. Fifteen private-sector insurance companies sell and service the policies. RMA develops and/or approves the premium rate, administers premium and expense subsidy, approves and supports products, and reinsures the 15 companies. The Standard Reinsurance Agreement sets forth the conditions of this arrangement, which is renegotiated periodically. Each company must apply (reapply) annually to participate in the program. In addition, RMA sponsors educational and outreach programs and seminars on the general topic of risk management.
Additional information about RMA can be found on its web site, including agency news, state profiles and other publications, summaries of insurance sales, information on pilot programs, downloadable crop policies, and agency-sponsored events. The site also features online tools, calculator, and applications. The most popular applications are the Agent Locator, Actuarial Document Browser, Premium Calculator, and Summary of Business.