06/25/07 New livestock insurance program

The Risk Management Agency in Spokane has announced the availability of the Livestock Risk Protection, or LRP program, for all counties in Idaho, Washington and Oregon. Jo Lynne Seufer of RMA says LRP plans of insurance include fed cattle, feeder cattle and swine. SEUFER "LRP only covers the price peril. It does not cover mortality, physical damage, disease, local price deviations but it does cover the change in price peril and the producer has the option to choose what price they want to guarantee." Seufer says LRP is similar to purchasing a put option. SEUFER  "But what is more user friendly about the Livestock Risk Protection is that again, it is more user friendly. A producer doesn't need a large, huge amount of dollar value as a put option requires. They can insure one steer, one heifer or one hog." And premiums are subsidized by the USDA. There are limits though on the number of head that can be insured annually. LRP sales for the 2008 crop year begin next week. Tomorrow, how to participate in this new risk management program. Voice of Idaho Agriculture