RMA Offering Changes to Livestock Insurance for 2021

WASHINGTON, DC – In these unprecedented times, USDA’s Risk Management Agency (RMA) is announcing changes to the Livestock Risk Protection (LRP) insurance program for feeder cattle, fed cattle, and swine. RMA Administrator Martin Barbre explains that the changes will make the policies more usable and affordable and RMA is working to implement the changes by July 1, 2020. Specifically, the changes available for the 2021 crop year include moving premium due dates to the end of the endorsement period and increasing premium subsidies to assist producers. On increasing the premium subsidy for coverage levels above 80 percent, Barbre says those with an 80 percent or higher coverage level will get a 5-percentage point subsidy increase. Producers may buy LRP insurance throughout the year from Approved Insurance Providers (AIPs), 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. Livestock insurance is sold and delivered solely through private insurance agents. More information can be found at farmers.gov/coronavirus.
(SOURCE: USDA’s Risk Management Agency)