WASHINGTON, DC – USDA has announced updates to two popular livestock insurance policies in an effort to improve options and create additional opportunities for producers to participate.
These Risk Management Agency (RMA) updates to the Dairy Revenue Protection (DRP) and Livestock Gross Margin (LGM) policies will be effective for the 2022 and succeeding crop years
DRP has been RMA’s most successful livestock product. In just its second year, the program has covered about 30 percent of milk production while providing critical protection against unexpected decreases in prices, due to COVID and other causes, paying around $478 million to dairy producers.
Changes include ensuring the Class Pricing Option remains available for purchase even when either the Class III or Class IV milk price is not published; relaxing records requirements by allowing monthly total pounds of milk and milk components (butterfat and protein) to be acceptable records instead of daily; and, modifying weekend sales period to end on Sunday at 9 a.m. Central Time.
LGM is available for cattle, dairy, and swine producers and provides protection against loss of gross margin (market value of livestock minus feed costs).
The LGM programs have also seen an increase in participation over the last year with coverage increasing approximately 103 percent year over year.
Crop insurance is sold and delivered solely through private crop insurance agents.
(SOURCE: All Ag News)