Changes Announced for Livestock Gross Margin Insurance Program

WASHINGTON, DC – USDA’s Risk Management Agency (RMA) announced changes to the Livestock Gross Margin (LGM) insurance program for cattle and swine beginning in the 2021 crop year.

Changes include adding premium subsidies to assist producers and moving premium due dates to the end of the endorsement period for cattle.

“These changes build upon RMA’s continued effort to make livestock policies more affordable and accessible for livestock producers,” RMA Administrator Martin Barbre said Monday.

“We are working to ensure that these improvements can be implemented by the July 31 sales period so producers can take advantage of these changes as soon as possible.”

Prior to this change, LGM-Cattle and Swine did not have premium subsidies. Now, subsidies have been added and are based on the deductible selected by the producer.

For LGM-Cattle, the subsidy will range from 18 percent with 0 deductible up to 50 percent with a deductible of $70 or greater. For LGM-Swine, the subsidy will range from 18 percent with 0 deductible up to 50 percent with a deductible of $12 or greater.

RMA is also authorizing additional flexibilities due to coronavirus while continuing to support producers.
Those with livestock insurance questions or needs should continue to contact their insurance agents about conducting business remotely, or more information can be found at farmers.gov/coronavirus. Livestock insurance is sold and delivered solely through private insurance agents.
(SOURCE: USDA)