River area. In 1959, the CI Act was passed to replace the Prairie Farm Assistance Act and provide more adequate protection to farmers in all provinces. CI has been a key federal support program since 1959 aimed at helping to stabilize farm incomes against production related risks. The reason governments got involved in CI was because the market failed to provide risk management tools for farmers to deal appropriately with production risk. CI has varied little over the years in that it was designed on the basis of participation by both levels of government (federal and provincial) and producers, shared program costs, voluntary participation, provincial administration, and actuarial soundness in the long run. The CI Act of 1959 enabled the federal government to assist provinces in making CI available to producers at a 60% coverage level. Originally the federal government's share of total premiums was 20%, with a 50% share of administrative expenses. In 1964, the Act was amended to incorporate general provisions for a reinsurance agreement between the provinces and the federal government. Further amendments were made in 1966 and 1970 concerning coverage levels and the federal government contribution to total premiums. The next amendment to the Act, in 1973, provided two options for the federal-provincial-producer cost-sharing arrangements. In one option, the federal and provincial governments each contributed 25% of total premiums and 50% of administrative costs. In the other option, the federal government contributed a total of 50% of premiums and the provinces paid all administrative costs. In the 1990 amendment, the maximum coverage was increased to 90% for low risk crops. Furthermore, the single cost-sharing formula was adopted, where the federal government and provinces each pay 25% of total premiums and 50% of administration costs. Other changes included waterfowl crop damage compensation, and regulations concerning self-sustainability and actuarial soundness requirements. Although federal legislation establishes the national framework, much flexibility exists for provinces to modify the program to meet the needs of their producers. Provincial plans are developed through consultations with all three parties on a commodity basis. CI is available in all provinces for a wide variety of crops but coverage is not universal, nor are participation rates necessarily high although the cost of the program is subsidized by government. AAFC allocates approximately $200 million per year to CI from its total safety net envelope of $600 million. In 1996–97 it is estimated that the federal government's