Private Agents To Take Over Crop Insurance Usda Plans To Transfer Sales To Private Sector Starting In ‘98

The Agriculture Department is turning over crop insurance programs to private companies.

Agriculture Secretary Dan Glickman announced Friday that crop insurance will be available exclusively through private agents starting in the fall of 1998.

Catastrophic crop insurance had been available through both local USDA Farm Service Agency offices and private agents in 36 states. But the 1996 farm law requires the department to transfer sales to the private sector if a sufficient number of agents were available in each state.

“While the sales and servicing of policies will be done by the private sector, this change will not weaken the existing safety net for producers,” Glickman said. “I am determined that everyone will have access to crop insurance.”

USDA will continue to subsidize polices, establish terms and conditions and guarantee funds for the payment of approved claims.