Livestock Risk Protection Program Available in the Pacific Northwest
6/17/2009
The Risk Management Agency’s (RMA) Spokane Regional Office would like to
remind Pacific Northwest livestock producers that the Livestock Risk Protection
(LRP) program is available in all counties in Idaho, Oregon and Washington. LRP
insurance plans include Fed Cattle, Feeder Cattle and Swine.
LRP coverage protects the policyholder from downward price risk during the
insurance period. It does not cover any other peril (e.g., mortality,
condemnation, physical damage, disease, individual marketing decisions, local
price deviations or any other cause of loss).
There are two steps to buy LRP coverage: 1) producers must submit an
application. Once the application is approved, the livestock crop insurance
provider will assign a policy number; and 2) the producer activates coverage at
any time by applying for a Specific Coverage Endorsement (SCE). No insurance
coverage is provided until the producer submits an SCE. Insurance will attach
immediately when RMA confirms the SCE has been accepted.
Premiums are due on the day a LRP insurance endorsement is purchased and
includes a 13 percent subsidy on the premium from RMA. To determine a premium,
insured producer will select the appropriate insurance period covering the
expected sell or slaughter date; choose a coverage price based on the chosen
coverage period; provide the number of livestock expected to be ready for sale
or slaughter at the end date and the target weight at time of slaughter; and the
percentage share of ownership in livestock to be insured.
Sales for the 2010 crop year will begin July 1, 2009 and continue through
June 30, 2010 (or until the maximum underwriting capacity (as established by the
Federal Crop Insurance Corporation) is reached). Cattle and swine producers are
encouraged to contact a local livestock insurance agent to learn additional
details. Federal crop insurance program policies are sold and delivered solely
through private crop and livestock insurance companies. A list of livestock crop
insurance agents is available at all USDA Service Centers throughout the U.S. or
at the RMA Web site address:
http://www3.rma.usda.gov/tools/agents
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