RMA - Risk Management Agency

09/14/2020 | Press release | Distributed by Public on 09/14/2020 15:39

Livestock Risk Protection for Feeder Cattle, Fed Cattle, and Swine Revisions Effective for the 2021 and Succeeding Crop Years

PRODUCT MANAGEMENT BULLETIN: PM-20-064



Date

September 14, 2020

To:

All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties

From:

Richard H. Flournoy, Deputy Administrator /s/ Richard H. Flournoy 9/14/2020

Subject:

Livestock Risk Protection for Feeder Cattle, Fed Cattle, and Swine Revisions Effective for the 2021 and Succeeding Crop Years

Background

Federal Crop Insurance Corporation's Board of Directors (Board) approved revisions to the Livestock Risk Protection (LRP) plan of insurance for Feeder Cattle, Fed Cattle, and Swine, under section 508(h) of the Federal Crop Insurance Act, on August 20, 2020. The following revisions are applicable for the 2021 and succeeding crop years:

  • Increase the premium subsidy rate for the 2021 crop year. The rate will increase based on the coverage selected by the livestock producer as outlined below:
Coverage Level
(Percent)
Previous Subsidy Rate
(Percent)
Revised Subsidy Rate
(Percent)
95-100
25
35
90-90
30
40
85-90
35
45
80-85
35
50
75-80
35
55
70-75
35
55

Other approved changes for the 2021 crop year (will be released at a later date):

  • Increase head limits to:
  • Feeder Cattle - 6,000 head per endorsement/12,000 head annually
  • Fed Cattle - 6,000 head per endorsement/12,000 head annually
  • Swine - 40,0000 head per endorsement/150,000 head annually
  • Modify the livestock ownership requirement to 60 days
  • Add endorsement length options of 39 weeks and 52 weeks for swine
  • Modify the policy and create new feeder cattle and swine types to allow for livestock to be insured before birth

Action

Approved Insurance Providers (AIPs) will need to resubmit any 2021 LRP policies to get the revised subsidy amounts before issuing premium bills to the insured.

If you have any questions, please contact Cody Lovercamp, Product Administration and Standards Division at (816) 926-6389.

DISPOSAL DATE:
December 31, 2021