The US Department of Agriculture maintains a Risk Management Agency which aims to support
the members of the agriculture producers industry by providing helpful market-based risk
management options so that these producers can handle risks inherent in their industry more
effectively. The end result that the US Department of Agriculture would like to achieve
through this Risk Management Agency is that economic stability will be realized in the US
agriculture producers industry by recognition, promotion, and regulation of these
satisfactory risk management options.

The US Risk Management Agency is a rather small organization, by government bureaucratic
standards, since it is staffed by just around 530 people throughout the US. Still, this
small pool of employees is responsible for the administrative budget amounting to almost
US$71 million.

The operations of the Risk Management Agency are subdivided into the Insurance Services
division, the Research and Development division, and the Risk Compliance division. The
Insurance Services division handles program delivery. The Research and Development division
is concerned with managing product development. And the Risk Compliance division is
responsible for checking that producers and insurance companies alike comply with program
regulations. (The insurance companies are those private corporations which sell policies
and provide after-sales services.)

The Risk Management Agency relies on the Federal Crop Insurance Corporation to help it
supply crop insurance to agriculture producers throughout the US. There are presently 14
privately owned insurance agencies which are tasked with the sale and after-sales services
of such crop insurance policies. For its part, the Risk Management Agency will compute for
and maintain the premium rate offered; regulate subsidies for premiums and expenses;
regulate products while providing necessary support; and offer reinsurance services to the
14 insurance agencies it is affiliated with.

Furthermore, the Risk Management Agency attempts to increase awareness of risk management
by sponsoring outreach and educational seminars and programs on the topic.

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