07/04/07 New livestock insurance product

Washington Ag July 4, 2007 Beginning July 1st livestock producers in all counties in Washington, as well as in Oregon and Idaho can start purchasing Livestock Risk Protection programs for fed cattle, feeder cattle and swine for the 2008 crop year. Jo Lynne Seufer of the regional office of USDA's Risk Management Agency, says LRP protects the policyholder against downside risk much like an options contract but is much more user friendly. She says the first step is to go to an insurance agent and submit an application. Seufer: "Which is a continuous policy but then to add to that would be a Specific Coverage Endorsement. And the SCE would be the tool that notes what coverage level and price election they choose. Then the producers are guaranteed at least that risk protection for any amount of period that they choose as well." Your current crop insurance company may not sell the new Livestock Risk Protection coverage but your agent can tell you where you can buy it and so does the RMA website. The RMA site is also where you find the daily prices from which to select the coverage price for the chosen coverage period. LRP premiums include a 13 percent USDA subsidy. I'm Bob Hoff.