Risk Management Agency
Encyclopedia
The Risk Management Agency (RMA) of the U.S. Department of Agriculture helps producers manage their business
risk
s 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. 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.
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
risk
Risk
Risk is the potential that a chosen action or activity will lead to a loss . The notion implies that a choice having an influence on the outcome exists . Potential losses themselves may also be called "risks"...
s through effective, market-based risk management
Risk management
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
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
Federal Crop Insurance Corporation
The Federal Crop Insurance Corporation is a wholly owned Government corporation managed by the Risk Management Agency of the U.S. Department of Agriculture. FCIC manages the Federal crop insurance program which provides U.S...
(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
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
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. 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.