(WASHINGTON) – On January 19, USDA’s Risk Management Agency (RMA) announced that further changes to its Livestock Risk Protection insurance plan will take effect on January 20 for crop year 2021 and succeeding crop years (view release HERE).
The policy language and procedures surrounding these changes include the creation of new livestock types to allow for unborn livestock to be insured and modifying the requirement to own livestock until the last 60 days of an endorsement.
“The sum of the changes makes LRP a game-changer for cattle producers,” explained Aaron Tattersall of Ag Risk Advisors.
“Starting today, a producer can provide themselves a price floor on an unborn calf, have full flexibility to market that animal through the summer, and pay nothing for that coverage until fall. All this at a tremendous value thanks to the revised subsidy rates released last summer.
“As commodity producers, most of our customers are price-takers in the market. They owe it to themselves to secure the best price guarantee for what they and their families work so hard to produce.”