USDA Insurance Enhancements
With the farm and ranch report I'm Rick Worthington.
The USDA is Risk Management Agency announced several enhancements to insurance programs that will provide a more efficient level of coverage for livestock and dairy producers.
The USDA's Martin Barbre says the program improvements are to the Dairy Revenue Protection, Livestock Gross Margin, and Livestock Risk Protection programs.
One of the big things that was done in the Bipartisan Budget Act of 2018 there was a cap in the Federal Crop Insurance Act that only allowed our email to use basically 20 million dollars a year of subsidies and a you know expenses to the companies for livestock product. The cap is lifted. It makes it available basically for all sizes of producers throughout the country. Livestock price protection is basically a market risk protection product that insures against declining market prices. You buy your product based on a market price similar to a crop product. If the price goes down there's an EMT available for the producer. A few things are new about dairy revenue. Dairy revenue you can insure fluid milk or you can ensure dairy product. We expanded the range of butter fat that could be covered under the policy we dropped the minimum from three point five pounds to three point twenty five pounds and for the declared butter fat it expanded the protein range from three down to two point seventy five and from two point seven five up to four remove the declared butter fat test and then adjusted the coverage levels and basically what happened there was we just removed the 17 cents 5 percent coverage levels because no one was using them.
For more information had a USDA.gov.