The U.S. Department of Agriculture (USDA) has updated three key crop insurance options for livestock producers: the Dairy Revenue Protection (DRP), Livestock Gross Margin (LGM), and Livestock Risk Protection (LRP). USDA’s Risk Management Agency (RMA) revised the insurance options to reach more producers, offer greater flexibility for protecting their operations, and ultimately, better meet the needs of the country’s swine, dairy, and cattle producers.
DRP is designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level; LGM protects against the loss of gross margin (or livestock’s market value minus feed costs); and LRP provides protection against price declines.
Producers will now have more flexibility with all three programs when indemnities are used to pay premiums, which can help producers manage their operation’s cash flow. With these updates, producers can now have both LGM and LRP policies, although they cannot insure the same class of livestock for the same time period or have the same livestock insured under multiple policies.
These updates will now allow dairy producers to be able to continue coverage even if they experience a disaster, such as a barn fire, at their operation. Cattle, Dairy, and Swine coverage has also been expanded, making it available in all counties in all 50 states, and head limits have also been increased.
Learn more on RMA’s Livestock Insurance Plans webpage. Crop insurance is sold and delivered solely through private crop insurance agents. A list of crop insurance agents is available at all USDA Service Centers and online at the RMA Agent Locator.
These improvements to livestock insurance options build on other efforts by USDA to improve programs for livestock producers. Recently, USDA expanded the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish to cover transportation costs of livestock to feed as well as feed to livestock. And USDA expanded Dairy Margin Coverage to enable dairy producers to enroll supplemental coverage.
The updates made to the three key crop insurance options for livestock producers are for the 2023 crop year, which begins July 1, 2022.