The first agricultural insurance program in Mexico began in 1942 and was based on arrangements between mutual unions and private insurance companies. It was not until 1961 that the first specialized public company for crop insurance was created, the National Crop and Livestock Insurance Company (ANAGSA). Insurance through ANAGSA was a condition for receiving agricultural credit; policies covered multiple-perils and premiums were almost entirely subsidized. Unfortunately, ANAGSA’s losses were staggeringly high, and during the 1980s the allocation of subsidies for agricultural insurance showed signs of mismanagement, which turned ANAGSA into a lossmaking entity. The Government began reducing subsidies and eliminating flat rate premiums, pushing farmers to seek more affordable agricultural insurance coverage.