Changes coming for Livestock Risk Protection insurance
September 15, 2020 By Tom Steever Filed Under: Livestock, News
USDA’s Risk Management Agency (RMA) is changing its Livestock Risk Protection (LRP) insurance program for feeder cattle, fed cattle and swine. The agency says, for the 2021 crop year, the LRP premium subsidy is increasing by five percentage points for coverage levels exceeding 80 percent. Also, the number of head of livestock allowed to be covered is increasing. The head limits increase for feeder and fed cattle to 6,000 head per endorsement, 12,000 head annually. Head limits increase for swine to 40,0000 head per endorsement, 150,000 head annually. Another change includes creating new feeder cattle and swine types to allow for unborn livestock to be insured.“We encourage livestock producers to contact their insurance agent to take advantage of these improvements,” said RMA Administrator Martin Barbre, quoted in news release from the USDA. “These changes will not only make LRP more affordable for producers, but also will provide them with better coverage.”Livestock Risk Protection coverage is available for 70 to 100 percent of the expected ending value of animals. If the actual ending value is below the coverage price, producers are paid an indemnity for the difference.
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