PIA Urges Congress to Reinstate Inflation Adjustment for Crop Agents

Washington, D.C. - On April 3, PIA sent a letter to Congressional leaders urging them to require the Risk Management Agency (RMA) to reinstate the annual administrative and operating (A&O) inflation adjustment for crop insurance agents in the ongoing budget reconciliation process.  

“Crop insurance agents are essential partners in the delivery of the Federal Crop Insurance Program, which increasingly serves as the primary food safety net for producers and the public. By requiring RMA to reinstate the annual inflation adjustment, Congress will strengthen the food supply framework to better meet the risk management needs of producers,” said Corey Weeks, PIA’s Manager of Government Relations.

For several years, the RMA would provide annual adjustments to crop insurance agent compensation to account for inflation. Then, in 2016, the RMA abruptly stopped providing an annual inflation adjustment for agents, functionally freezing their compensation in 2016 dollars indefinitely. Since then, the RMA has refused to reinstate the annual inflation adjustment, arguing that it cannot legally do so without renegotiating the Standard Reinsurance Agreement (SRA).

“RMA maintains this position even though the agency began providing an annual inflation adjustment without renegotiating the SRA, and despite 2022 appropriations report language from Congress stating unequivocally the RMA has the authority to reinstate the inflation adjustment,” Weeks said.

PIA remains committed to supporting the Federal Crop Insurance Program and looks forward to working with Congress to bring much needed relief to agents.

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance but specialize in coverage of automobiles, homes and businesses. PIA’s web address www.pianational.org