11-23 IAN Dairy Insurance

 The U.S. Department of Agriculture’s Risk Management Agency recently announced that the Federal Crop Insurance Corporation’s Board of Directors approved revisions to the Livestock Gross Margin Dairy Cattle (LGM-Dairy) insurance plan. The revised 2011 Livestock Gross Margin -Dairy insurance plan will be available for sale on December 17, 2010.  A summary of the changes are: 

 Revised timing of premium payment – Premium for LGM-Dairy will now be due at the end of the coverage period rather than at the time of purchase.

Subsidy – A premium subsidy will be available for policies that insure multiple months during the insurance period. The subsidy amount will be determined by a dollar deductible selected by the policyholder (from $0-$2, in $.10 increments). Policyholders choosing a $0 deductible will receive a lower premium subsidy (18 percent) and those choosing the highest deductible of $2 will receive a higher premium subsidy (50 percent).

 Higher deductibles offered –The maximum dollar deductible has been increased from $1.50 to $2.00. Higher deductibles allow producers flexibility to cover a minimum gross margin, providing protection similar to catastrophic coverage.

Adjustment of feed loads – Feed values have been updated based on information provided by the National Milk Producers Federation. Here’s USDA RISK MANAGEMENT AGENCY spokesperson Jo Lynne Seufer : “This is going to help dairymen? Oh Dave, absolutely, finally we’re helping them pay for this premium. I’m happy for the producers.”