|
Research and Development for Small Value Crops This RMA contract addresses research into the general characteristics of small value crops and requires the Contractor to explore alternatives to RMA's individual crop insurance development approach for these crops. The contract calls for an evaluation of the opportunities to use these alternative development approaches to reduce the costs and time required for the development of Federally-subsidized crop insurance for small value crops. W&A researched and, as far as possible, documented the shared characteristics for the small value crop industry and its producers. W&A also researched the shared characteristics for clearly identifiable segments existing within the industry. Following this research effort, the Contractor developed and described ten alternatives to RMA's individual crop insurance development approach for further refinement and consideration. These included insurance of a variety of indices that might correlate with small value crop yields, a modification of the Adjusted Gross Revenue program to address the special risk management needs of small value crop producers, two approaches to the insurance of the weather that affects the small value crop producer, and an alternative strategy for rating a multiple peril insurance plan. The assessment of the feasibility of developing crop insurance focuses on three broad feasibility requirements: acceptability to producers, responsibility to the taxpayers, and market neutrality. The efficacy of feasible alternatives will be assessed. Watts and Associates will the report to RMA their recommendation concerning the feasibility and efficacy of developing any Federally-subsidized crop insurance for small value crop producers in a way that is financially responsible to the taxpayers. |
 |