Who sets the Market Price Percentage for insured crops?

The Market Price Percentage for insured crops is set by the Risk Management Agency (RMA). The RMA is a part of the United States Department of Agriculture (USDA) and is responsible for administering federal crop insurance programs. This includes determining key metrics such as the Market Price Percentage, which reflects the expected market value of a crop at harvest. This figure is crucial as it influences the insurance coverage and indemnity payments farmers might receive in the event of a loss.

The responsibility of setting this percentage is rooted in the RMA's role to provide a standardized approach to crop insurance across the United States, ensuring that all producers have access to the same market data and coverage options. This consistency is important for the viability and reliability of the crop insurance system, as it helps maintain fairness and transparency in agricultural insurance practices.

While state agricultural departments, crop producers, and insurance companies play roles in the broader agricultural and insurance landscape, they do not have the authority to set the Market Price Percentage, which is designated specifically to the RMA as part of its regulatory duties.