Updates to Livestock Insurance Options Provide Better Protection for Producers
Feed costs continue to rise at a time when livestock and dairy markets are facing increased volatility.
Richard Flournoy, deputy administrator of the USDA’s risk management agency, says programs such as Dairy Revenue Protection, Livestock Gross Margin and Livestock Risk Protection help producers mitigate risk. “Margin programs will help cover the difference between the price received and the feed costs,” he says. “If that’s something that’s concerning, that would be a good thing too. Livestock risk protection that will cover downward price movements. »
Flournoy says Dairy Revenue Protection helps producers manage fluctuations in the dairy market. “That’s going to take a look at revenue on a quarterly basis,” he says. “If your overall farm income is something you’re concerned about, this would be a good tool to use.”
He says this now allows producers to continue to be covered if they experience a fire or other weather-related disaster on their farms.
He tells Brownfield that the updates provide better protection for growers and are available through their local crop insurance agent. “It’s very specific to your operation,” he says. “That’s why if a producer is interested, it’s important to work with your agent and they can walk you through those options and find something that works for you.”
Flournoy says the Livestock Gross Margin program has also been expanded to make it available in all counties in all 50 states. For the Livestock Risk Protection Program, insurance companies are now required to pay claims within 30 days and head limits have been increased for fed cattle (12,000 heads per endorsement and 25,000 heads per campaign), feeder cattle (12,000 heads per endorsement and 25,000 heads per campaign), pork (70,000 head per endorsement and 750,000 head per campaign).
These updates are for the 2023 crop year, which begins July 1, 2022.
AUDIO: Richard Flournoy, USDA Risk Management Agency