Risk Management Agency Insurance Products and Farm Service Agency Programs Available for Arizona Agricultural Producers

Managing risk in agriculture is not a new concept as the agricultural industry is inherently volatile. Arizona agricultural producers are vulnerable to the positive and negative impacts of consumer demands, weather, public policy, and water and pesticide regulations, which all can have tremendous influence on the success of the operation. Understanding the types of risk and the tools to manage these risks is just as important to the producer as knowing how to grow the commodities.

The Risk Management and Farm Service agencies both have risk management programs available to agricultural producers, but they vary in assistance methods. In general the Risk Management Agency (RMA) manages the USDA crop and livestock insurance products provided to agricultural producers, while the Farm Service Agency (FSA) manages the USDA disaster assistance programs available to agricultural producers. RMA assist in the development and underwriting of the crop insurance programs, which are then sold by private insurance companies, with premium subsidies provided to the agricultural producer. FSA programs are developed and delivered directly by the agency.

This article outlines products available as of December 2012.