|
Source: USDA RMA, 5/4/22
The U.S. Department of Agriculture has updated three key crop
insurance options for livestock producers: the Dairy Revenue Protection (DRP),
Livestock Gross Margin (LGM), and Livestock Risk Protection (LRP). USDA’s Risk
Management Agency (RMA) revised the insurance options to reach more producers,
offer greater flexibility for protecting their operations, and ultimately,
better meet the needs of the country’s swine, dairy, and cattle producers. The
updates were published last week for the 2023 crop year, which begins July 1,
2022.
“Great and sound customer service is the most important thing we can provide our nation’s producers, making sure the programs and products we offer give them the most useful tools for covering their risks,” said RMA Administrator Marcia
Bunger. “Agriculture is not a static industry, and these updates reflect the importance we place on always knowing the evolving needs of producers and offering the most people the best risk management tools we can.” DRP is designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level; LGM protects against the loss of gross margin (or livestock’s market value minus feed costs); and LRP provides protection against price declines. Producers will now have more flexibility for DRP, LGM, and LRP, when indemnities are used to pay premiums, which can help producers manage their operation’s cash flow. With these updates, producers can now have both LGM and LRP policies, although they cannot insure the same class of livestock for the same time period or have the same livestock insured under multiple policies. Additional updates by
insurance option include: Dairy
Revenue Protection
- Dairy producers are now able to
continue coverage even if they experience a disaster, such as a barn fire,
at their operation.
Livestock
Gross Margin
- Cattle,
Dairy, and Swine coverage has been expanded, making it available in all
counties in all 50 states.
Livestock
Risk Protection
- Insurance
companies are now required to pay indemnities within 30 days, rather than
the previous 60 days, following the receipt of the claim form.
- Head
limits have been increased:
Fed Cattle:
12,000 head per endorsement and 25,000 head per crop year Feeder
Cattle: 12,000 head per endorsement and 25,000 head per crop year Swine: 70,000 head per endorsement and 750,000
head per crop year
- The
termination date under LRP has been extended from June 30 to August
31
- Location
reporting requirements have been relaxed to list only state and county,
instead of the precise legal location.
Learn more on RMA’s Livestock Insurance Plans webpage. Crop insurance is sold and delivered
solely through private crop insurance agents. A list of crop insurance agents
is available at all USDA Service Centers and online at the RMA Agent Locator.
More
Information These
improvements to livestock insurance options build on other efforts by USDA to
improve programs for livestock producers. Recently, USDA expanded the Emergency
Assistance for Livestock, Honeybees, and Farm-raised Fish to cover
transportation costs of livestock to feed as well as feed to livestock. And
USDA expanded Dairy Margin Coverage to enable dairy producers to enroll
supplemental coverage.
|