Insurance coverage for livestock will be broadened for the 2027 crop year, USDA’s Risk Management Agency announced Monday. The changes will be made across the Livestock Risk Protection, Livestock Gross Margin and Dairy Revenue Protection programs.
Some of the biggest changes in the programs are in the policy language, which account for off-exchange contracts and transfers in coverage.
Beginning farmers or ranchers can receive a 10% premium subsidy rate for 10 years, with an additional 5% in their first two years, 3% in the third year and 1% in the fourth year, consistent with the One Big Beautiful Bill Act. Other changes allow for concurrent livestock coverage and cancel policies with unearned premiums for three years in a row.
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The Livestock Risk Protection program provides 75% to 100% coverage against declining market prices. Three new types of unborn feeder cattle were added to the coverage. The forage disaster exemption was expanded to account for drought and natural disasters.
The Livestock Gross Margin program increased the maximum insurable weight of cattle from 1,500 pounds to 1,800 pounds. The maximum target feeder cattle weight for yearling finishing operations was also increased from 900 to 1,200 pounds.
The Dairy Revenue Protection program is based on futures prices for milk and dairy products. For consistency with other insurance programs, the sales ending date will be moved forward by one day.
