USDA, Crop Insurance Companies Reach Agreement

USDA and all 16 crop insurance companies have signed the 2011 Standard Reinsurance Agreement, ending nearly seven months of negotiations. The latest agreement is expected to save $6 billion within the next 10 years that will go toward paying down the federal deficit and supporting high-priority risk management and conservation programs. The possibility of windfall government payments based on high commodity price spikes has been eliminated in the new agreement and the projected average long-term return for the insurance companies was reduced to 14.5 percent. Learn more.