USDA’s Risk Management Agency will move premium dates and boost subsidies under the Livestock Risk Protection insurance program meant to protect producers against price declines.
Under the changes announced Tuesday, premiums can be paid at the end of the endorsement period, a move that puts LRP in line with other policies. RMA is also increasing the premium subsidy for coverage levels above 80%; policies with an 80% or higher coverage level will get a 5 percentage point subsidy increase.
RMA Administrator Martin Barbre says the changes “will make these policies more usable and affordable for livestock producers.” The new language concerns policies for feeder cattle, fed cattle, and swine starting this summer for the 2021 crop year. Barbre says RMA is “working to ensure these improvements can be implemented by July 1.”
The program pays indemnities if prices drop below a set coverage level set by the producer — between 70% and 100% — when creating the policy. Premium rates, coverage prices and actual ending values are posted online daily.
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