9-5 FB 30-Day Waiver

 USDA Approves 30-Day Voluntary Waiver on Livestock Program. USDA’s Risk Management Agency (RMA) announced approval of the voluntary waiver of Livestock Risk Protection (LRP) Basic Provisions 30-day ownership requirement due to severe drought. In keeping with USDA measures to assist producers in managing drought conditions, Approved Insurance Providers (at their sole discretion) may waive the 30-day ownership requirement for Livestock Risk Protection Specific Coverage Endorsement policies. Possible eligibility for the waiver would apply to policies purchased August 2, 2011 through August 16, 2012, subject to verification of proof of ownership.Here’s Jo Lynee Seufer of the USDA’s Risk Management Agency: “We have a price protection tool where producers can buy a put option to protect the downside price risk. Normally put options are bought with the Chicago Mercantile exchange but instead this is an insurance policy that mirrors that.” The waiver does not affect actuarial performance of the Livestock Risk Protection policy and permits producers to market their livestock as necessary while the policy continues in force.