Mr. O'Brien told the committee, "The bigger question here is of interest to all consumers and independent agents and brokers, which is: whether individuals without the expertise and the statutory qualifications required of insurance agents will be allowed to sell insurance plans. This is potentially a very slippery slope, and it is crucial that Congress not allow it."

In his testimony, Mr. Nielsen also criticized the RMA for allowing one company, Des Moines, Iowa-based Crop1, to operate a PRP while denying others the right to establish their own programs until the system is completely reviewed.

"If this is RMA's idea of promoting competition in the industry, then the future looks very bleak for anyone involved in the delivery of this important risk management program, and I shudder to think of the impact it will have on America's agriculture producers," Mr. Nielsen said.

Also testifying at the hearing was RMA Administrator Ross J. Davidson, Jr., who defended the program's effectiveness.

"Farmers who purchased insurance using the PRP plan expressed appreciation for the lower premiums and consistently reported good service," Mr. Davidson said. "Additionally, Crop1 has a very good record of compliance with the administrative requirements of reporting policy information, remitting payments to FCIC and resolving discrepancies."

Mr. Davidson also said that several other companies filed a request to begin their own PRPs last year, but that these requests gave rise to "a number of implementation issues." The RMA proposed a regulation earlier this year, he said, and has received comment on the proposal both opposing and supporting it. Currently, he added, the rulemaking process "continues to move along in a timely manner."

The House has made its opinion on the issue known, voting to approve a provision that withholds funding for PRPs as part of its 2006 agriculture spending bill. "We are hopeful that the Senate will recognize the merit in this provision and include it in the overall spending package that reaches the President's desk," said Mr. O'Brien.