Recently, the Risk Management Agency (RMA) responded to a March letter sent by PIA and other agent groups, including the Crop Insurance Professionals Association, urging them to reinstate the inflation adjustment for crop agents. In its response, the RMA stated that, without renegotiating the Standard Reinsurance Agreement (SRA), it cannot reinstate the inflation adjustment, despite Congress’s recent confirmation that it is within RMA’s legal authority to do so.
Last fall, PIA and its allies successfully advocated for the inclusion of provisions in the omnibus appropriations bill stating the view of Congress that RMA has the legal authority to reinstate the inflation adjustment without renegotiating the SRA. Despite Congress’s conclusion that RMA has the power to restore the inflation adjustment, RMA continues to deny it has the legal authority to do so.
PIA will continue to advocate in support of the reinstatement of the inflation adjustment for crop agents and looks forward to working with Congress on including the inflation adjustment reinstatement in the upcoming Farm Bill.