(SEPTEMBER 21, 2020) – Ranchers and livestock owners across the nation will be pleased to hear about lower premiums and additional flexibility becoming a part of the Livestock Risk Protection (LRP) Insurance Program. The Federal Crop Insurance Corporation’s Board of Directors recently approved changes to LRP cattle and swine policies which were announced September 14, 2020 by the Risk Management Agency (RMA).
Increased subsidy rates for all coverage levels are effective immediately for 2021 LRP policies, while additional improvements including the ability to place coverage on unborn calves are expected to be implemented soon.
“This represents an incredible opportunity for cattle producers, especially with forthcoming changes allowing producers to lock in a price on calves which haven’t yet hit the ground,” explained Tait Berlier of AgRisk Advisors.
“With these improvements, RMA is essentially begging ranchers to get a handle on their marketing risk and we couldn’t agree with them more. This is an absolute game-changer for cow-calf operations who struggle with short marketing windows.”
Expanded head limits and ownership requirements are among the announced policy updates which have yet to be ironed out. RMA has said it hopes to have language for the remainder of the planned improvements set by the beginning of calendar 2021.
“We can’t thank U.S. Cattlemen’s Association enough for their help in lobbying for these changes to LRP,” Berlier continued. “RMA is very focused on producer feedback which makes input and support from a group like USCA so critical. We really appreciate all the organizations who helped get behind this and RMA especially for taking the time to listen.”