Updates to livestock insurance options offer better protection for producers
Feed costs continue to rise at a time when livestock and dairy markets are facing increased volatility.
Richard Flournoy Deputy Administrator for the USDA’s Risk Management Agency says programs like Dairy Revenue Protection, Livestock Gross Margin, and Livestock Risk Protection help producers mitigate risk. “The margin programs are going to help cover the difference between the price received and feed costs,” he says. “If that’s something that is a concern, that would be a good too. Livestock Risk Protection that’s going to cover downward price movements.”
Flournoy says the Dairy Revenue Protection helps producers navigate fluctuations in the dairy market. “That’s going to take a look at revenue on a quarterly basis,” he says. “If your overall revenue on your operation is something that is a concern, that would be a good tool to use.”
He says it now allows producers to continue coverage if they experience a fire or other weather-related disaster at their operations.
He tells Brownfield the updates offer better protection for producers and are available through their local crop insurance agent. “It’s very specific to your operation,” he says. “That’s why if a producer has interest it’s important to work with your agent and they can walk you through these options and find something that works for you.”
Flournoy says the Livestock Gross Margin program has also been expanded to make it available in all counties in all 50 states. For the Livestock Risk Protection Program, insurance companies are now required to pay indemnities within 30 days and head limits have been increased for 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).
These updates are for the 2023 crop year, which begins July 1, 2022.
AUDIO: Richard Flournoy, USDA’s Risk Management Agency