USDA changes Livestock Risk Protection program
The USDA is changing the Livestock Risk Protection (LRP) insurance program for feeder cattle, fed cattle and swine starting this summer with the 2021 crop year.
Risk Management Agency Administrator Martin Barbre says the changes include allowing premiums to be paid at the end of the endorsement period and increasing the premium subsidy for coverage levels above 80%. He says producers with an 80% or higher coverage level will also get a 5% subsidy increase.
Barbre says the changes will make policies more usable and affordable for livestock producers, and USDA is working to implement the changes by July 1st.
The USDA says producers may buy LRP insurance throughout the year from Approved Insurance Providers, with coverage prices ranging from 70 to 100 percent of the expected ending value of their animals. At the end of the insurance period, if the actual ending value is below the coverage price, producers will be paid an indemnity for the difference.