U.S. Capitol building in Washington, D.C.  PIA and its allies successfully advocated for language to be added to an appropriations package in late 2022 that stated Congress' belief that the RMA had the authority to reinstate the inflation adjustment for the subsidy without having to renegotiate it. Photo: Diego M. Radzinschi/ALM

If passed, a bill introduced last week in the U.S. House of Representatives would reinstate an inflation adjustment for crop insurers. The bipartisan Ensuring Access to Risk Management Act of 2024 is also backed by the National Association of Professional Insurance Agents (PIA).

The 2011 Standard Reinsurance Agreement (SRA) previously established a cap on the administrative and operating expense subsidy, which is a pool of funds that crop insurers use to pay agent commissions. However, in 2016 the USDA's Risk Management Agency (RMA) stopped making annual inflation adjustments to the total subsidy cap. The cap has remained fixed in 2015 dollars ever since.

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