7-2 IAN Livestock Risk

Livestock Programs Available in the Pacific Northwest

 The Risk Management Agency’s (RMA) Spokane Regional Office would like to remind Pacific Northwest livestock producers of the livestock risk management programs available in all counties in Idaho, Oregon and Washington. The Livestock Risk Protection (LRP) program for Fed Cattle, Feeder Cattle, Lamb and Swine and the Livestock Gross Margin (LGM) program for Swine will begin sales for the 2013 crop year July 2, 2012 and continue through June 30, 2013; or until the maximum underwriting capacity is reached.

LRP coverage protects the policyholder from downward price risk during the insurance period. LGM provides protection against the loss of gross margin (market value of livestock minus feed costs). LRP and LGM do not cover any other peril (e.g., mortality, condemnation, physical damage, disease, individual marketing decisions, local price deviations or any other cause of loss). Here is Jo Lynne Seufer, Risk Management Specialist:  “Downward price protection tool. It’s like buying an  option on the Chicago Mercantile exchange and ours is very similar. Instead of going to a broker and doing it they can go to a livestock crop insurance agent and we will pay for 13% of the premium and we will pay for additional premium if it’s lamb, will pay 13% if it is feeder cattle or fed cattle but we will pay additional if it’s lamb and a producer can insure one head versus going to the Chicago Mercantile exchange where they have a 100 weight limit which is quite large.”

Cattle, swine and lamb 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