Federal Crop Insurance Corporation
Encyclopedia
The Federal Crop Insurance Corporation (FCIC) 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. farmers and agricultural entities with crop insurance
protection.
in legislation that passed on February 16, 1938 (7 U.S.C. 1501.). The legislation was created in response to the economic difficulties brought to the U.S. farming industry by the Great Depression
and the weather-related catastrophe of the Dust Bowl
. On September 26, 1980, the program was expanded through Public Law 96-365.
Initially, participation in FCIC was voluntary. However, insurance premiums were subsidized by the U.S. government as a means of encouraging participation in the FCIC program. This changed with the Federal Crop Insurance Reform Act of 1994, which required farmers to participate in the program in order to be eligible for deficiency payments related to certain FCIC programs. Mandatory participation was repealed in 1996.
An independent office designed to supervise and monitor FCIC activities was mandated in the Federal Agriculture Improvement and Reform Act of 1996
(P.L.104-127). The Agriculture Risk Protection Act of 2000
(ARPA) further amended FCIC’s activities by offering a wider selection of insurance-related risk management tools to farmers and agricultural entities.
hybrid seeds that are designed to be resistant to damage from lepidopteron pests (including moths and their larvae) and below-ground corn rootworm damage. The biotech corn hybrid seeds must also show tolerance to certain herbicides. FCIC coverage for the biotech corn hybrid seeds goes into effect in 2009.
Crop insurance
Crop insurance is purchased by agricultural producers, including farmers, ranchers, and others to protect themselves against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities...
protection.
Agency history
FCIC was created by the United States CongressUnited States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
in legislation that passed on February 16, 1938 (7 U.S.C. 1501.). The legislation was created in response to the economic difficulties brought to the U.S. farming industry by the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
and the weather-related catastrophe of the Dust Bowl
Dust Bowl
The Dust Bowl, or the Dirty Thirties, was a period of severe dust storms causing major ecological and agricultural damage to American and Canadian prairie lands from 1930 to 1936...
. On September 26, 1980, the program was expanded through Public Law 96-365.
Initially, participation in FCIC was voluntary. However, insurance premiums were subsidized by the U.S. government as a means of encouraging participation in the FCIC program. This changed with the Federal Crop Insurance Reform Act of 1994, which required farmers to participate in the program in order to be eligible for deficiency payments related to certain FCIC programs. Mandatory participation was repealed in 1996.
An independent office designed to supervise and monitor FCIC activities was mandated in the Federal Agriculture Improvement and Reform Act of 1996
Federal Agriculture Improvement and Reform Act of 1996
The Federal Agriculture Improvement and Reform Act of 1996 , known informally as the Freedom to Farm Act, the FAIR Act, or the 1996 U.S...
(P.L.104-127). The Agriculture Risk Protection Act of 2000
Agriculture Risk Protection Act of 2000
The Agriculture Risk Protection Act of 2000 made major revisions to the federal crop insurance program and provided emergency agricultural assistance...
(ARPA) further amended FCIC’s activities by offering a wider selection of insurance-related risk management tools to farmers and agricultural entities.
Financial claims
Between 1980 and 2005, FCIC recorded $43.6 billion in total claims, averaging approximately $1.7 billion in losses per year. Three-quarters of FCIC claims result three weather-related disasters – drought, excess moisture, and hail – with the remaining claims divided among 27 different causes, including crop-damaging frost and tornados.Biotech coverage expansion
In September 2008, the U.S. Department of Agriculture approved the expansion of the FCIC’s risk management program to include agricultural producers involved in the planting and harvesting of certain biotech cornMaize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
hybrid seeds that are designed to be resistant to damage from lepidopteron pests (including moths and their larvae) and below-ground corn rootworm damage. The biotech corn hybrid seeds must also show tolerance to certain herbicides. FCIC coverage for the biotech corn hybrid seeds goes into effect in 2009.