This article incorporates public domain material from Jasper Womach. Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition (PDF). Congressional Research Service.
The United States Department of Agriculture allows private insurance companies that participate in the federal crop insurance program to transfer a portion of their risk to the federal government. The standard reinsurance agreement establishes the terms and conditions under which the United States federal government will provide subsidies and reinsurance on eligible crop insurance contracts sold or reinsured by the insurance company named on the agreement.