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Beware of Crop Insurance Rebating Schemes

Yolo County FSA Office
February 19, 2008

With the spring sales closing date for many Federal crop insurance policies right around the corner, crop insurance agents have stepped up their marketing efforts.  The Risk Management Agency (RM) has received reports from producers and agents that some aggressive marketers have been approaching producers with rebating offers.  These schemes promise lower insurance premiums, refunds, dividends or items of value tied to crop insurance purchases.  Most of these activities are illegal. 

RMA reminds all Federal crop insurance program participants that it is now coordinating with state regulators to take appropriate regulatory action against all those who are found to promote or participate in such schemes.  Producers who are found to participate in illegal rebating activities will not only lose their crop insurance coverage but will also lose eligibility in all USDA programs.  Producers and agents can report suspicions of illegal rebating to the OIG Hotline: 1-800-424-9121.

Marianne A. Morton
Yolo County FSA Office
221 W. Court Suite 3B
Woodland, CA 95695
(530) 662-3986 x 104