Legal Definitions - Federal Crop Insurance Corporation

The Federal Crop Insurance Corporation (FCIC) is a government organization that helps farmers protect themselves against financial losses caused by crop failure due to various reasons such as adverse weather conditions, insect infestation, plant disease, floods, fires, and earthquakes. The FCIC encourages farmers to purchase insurance through licensed agents and brokers and reinsures private companies that issue insurance under brand names.

The FCIC was created by the Agricultural Adjustment Act of 1938 and operates under the supervision of the Secretary of Agriculture.

For example, if a farmer purchases crop insurance from a private company and their crops are destroyed by a natural disaster, the FCIC will help cover the financial losses incurred by the farmer. This helps farmers manage the risks associated with farming and ensures that they can continue to produce food for the country.

Another example is if a farmer's crops are damaged by pests or disease, the FCIC will help cover the losses incurred by the farmer. This encourages farmers to take preventative measures to protect their crops and ensures that they can continue to produce food for the country.

These examples illustrate how the FCIC helps farmers manage the risks associated with farming and ensures that they can continue to produce food for the country.