WASHINGTON – The US Dept. of Agriculture’s Risk Management Agency (RMA) announced on June 9, it will make changes to the Livestock Risk Protection (LRP) insurance program for feeder cattle, fed cattle and swine starting this summer with the 2021 crop year.
Some of the changes include allowing premiums to be paid at the end of the endorsement period, putting it in line with other policies.
“These changes will make these policies more usable and affordable for livestock producers,” said Martin Barbre, RMA administrator. “We are working to ensure these improvements can be implemented by July 1 so producers can take advantage of these changes.”
RMA also said it can increase the premium subsidy for coverage levels above 80%. Anything more than 80% or higher coverage level will get a 5-percentage point subsidy increase.
The agency said producers can buy LRP insurance throughout the year from Approved Insurance Providers (AIPs), with coverage prices ranging from 70% to 100% of the expected ending value of the animals.
If the insurance period concludes with the actual ending value below the coverage price, producers will be paid an indemnity for the difference.
RMA said daily online updates are posted for premium rates, coverage prices and actual ending values.
RMA is authorizing additional flexibilities due to coronavirus while continuing to support producers, working through AIPs to deliver services, including processing policies, claims and agreements. RMA staff are working with AIPs and other customers by phone, mail and electronically to continue supporting livestock insurance coverage for producers.