The U.S. Department of Agriculture said recently it has gotten agreements from the 16 insurance providers that have taken part in federal crop insurance.
Through the reinsurance agreements, the USDA expects $6 billion in savings over the next 10 years in a negotiation process that began in December 2009. Agriculture Secretary Tom Vilsack said that the result will be a reduction in the federal deficit and a "more sustainable" crop insurance program.
"USDA appreciates the efforts of the companies to negotiate a new agreement in good faith, with straightforward and constructive dialogue to develop an agreement that works for the companies, producers and taxpayers," Vilsack said.
The Risk Management Agency has provided approval to the 16 companies to take part in the crop insurance program starting with the fall season of agriculture business, provided that the firms' plans of operations are approved by the government.
Crop insurance measures can provide a number of benefits, including producing a climate that encourages policy providers to service farm equipment users who may live in higher-risk areas.