USDA recently updated three insurance options for livestock producers, including Dairy Revenue Protection (DRP), Livestock Gross Margin (LGM) and Livestock Risk Protection (LRP). According to USDA’s Risk Management Agency (RMA), these were revised to reach more producers and offer greater flexibility. The updates will take effect July 1.
“Agriculture is not a static industry, and these updates reflect the importance we place on always knowing the evolving needs of producers and offering the most people the best risk management tools we can,” said RMA Administrator Marcia Bunger.
Under DRP, which is designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level, dairy producers now will be able to continue coverage even if they experience a disaster, such as a barn fire, at their operation.
LGM coverage, which protects against the loss of gross margin (livestock’s market value minus feed costs), has been expanded for cattle, dairy and swine, making it available in all counties in all 50 states.
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