Livestock Risk Protection Insurance Program Gains Improvements


USDA’s Risk Management Agency (RMA) announced changes this week to the Livestock Risk Protection (LRP) insurance program for feeder cattle, fed cattle and swine starting this summer with the 2021 crop year. Changes include moving premium due dates to the end of the endorsement period and increasing premium subsidies to assist producers.

Specifically, the changes:

  • Allow premiums to be paid at the end of the endorsement period, putting it in line with other policies.
  • Increase the premium subsidy for coverage levels above 80 percent. 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.

Tait Berlier, who is an advisor for Ag Risk Advisors, says producers should continue to look at the changes as “a regular part of their yearly plan.” Berlier added, “It makes the higher coverage levels, where you sometimes have a chance to protect your profit, more affordable.”

Berlier says the increased premium subsidy make the insurance program an even greater value for livestock producers who are dealing with very thin margins. Pushing the premium due date to the end of the coverage period means the bill comes when you have cash flow instead of months in advance of selling your cattle. RMA is authorizing additional flexibilities due to coronavirus while continuing to support producers, working through AIPs to deliver services, including processing policies, claims and agreements.

Berlier says his team at Ag Risk Advisors is actively working with RMA to improve the functionality of the LRP program for ranchers. “We’re working on coming back to RMA with some further requests for improvements,” Berlier said. “So, I would suggest producers be in touch with outfits like Livestock Risk Management Working Group or your crop insurance agent if you have any thoughts about this.”

RMA staff are working with AIPs and other customers by phone, mail and electronically to continue supporting livestock insurance coverage for producers. Producers with livestock insurance questions or needs should continue to contact their insurance agents about conducting business remotely (by telephone or email).

More information can be found at



Northern Ag Network – 2020

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