The U.S. Department of Agriculture (USDA) has announced that improvements will be coming to an important livestock insurance program. USDA’s Risk Management Agency (RMA) has indicated that beginning in the 2021 crop year, there be changes implemented in the Livestock Gross Margin (LGM) insurance program for cattle and swine.
“These changes build upon RMA’s continued effort to make livestock policies more affordable and accessible for livestock producers,” RMA Administrator Martin Barbre said in a press release. “We are working to ensure that these improvements can be implemented by the July 31 sales period so producers can take advantage of these changes as soon as possible.”
Some of the changes to the program include the addition of premium subsidies to help provide assistance to producers. The premium due dates will also be moved to the end of the endorsement period for cattle. The LGM insurance program had not historically made premium subsidies available for cattle and swine producers. The new subsidies will be based on the deductible selected by the producer. The subsidy for LGM-Cattle will range from 18 percent with zero deductible up to 50 percent with a deductible of $70 or greater. The subsidy for LGM-Swine will range from 18 percent with zero deductible up to 50 percent with a deductible of $12 or greater.
Along with the improvements to the livestock insurance program, RMA is also authorizing additional flexibilities as the industry continues to navigate the conditions created by COVID-19. The agency will also continue to support producers through working with Approved Insurance Providers (AIPs) to process policies, claims, and agreements. RMA staff remain available to communicate with AIPs and other customers electronically, or by phone or mail. A list of insurance agents that are available to provide assistance can be found online using the RMA Agent Locator.