Prior to the 2010 renegotiation of the SRA, some observers argued that the reimbursement rate should be pegged to something other than premium value, such as the number of policies sold, to better reflect actual costs and to help reduce federal expenditures. If premiums are actuarially sound, the administrative costs of writing a policy are likely not proportional to the value of the policy (., whether 10 acres or 1,000 acres, or $3 per bushel or $9 per bushel). In order to control costs, A&O reimbursement under the current SRA is still based on premiums (which are directly affected by.
