More pork producers will soon have access to the U.S. Department of Agriculture’s Federal Crop Insurance program for livestock producers.
The Livestock Risk Protection Plan (LRP)-Swine Pilot Project, originally offered exclusively in Iowa, provides market price protection for pork producers. The expanded pilot project will reach producers in 10 more states: Illinois, Indiana, Kansas, Minnesota, Nebraska, Nevada, Oklahoma, Texas, Utah and Wyoming.
Pork producers in Iowa will also benefit from the crop insurance board’s approval of changes to the Livestock Gross Margin (LGM) pilot insurance program. Insured producers are paid if the actual gross margin (hog price minus feed costs) for market hogs sold during the coverage period is less than the gross margin guarantee. LGM sales will be offered on a monthly basis rather than biannually. Insurance periods will change to a five-month period starting one calendar month and one day after the close of sales rather than six months after closing date. The price discovery period will end three business days before the sales closing date, and the sales period is reduced to the two business days after the price discovery period. Changes should go into effect around February 2004.
Contact your local Farm Service Agency office for more details and eligibility requirements or go online at www.rma.usda.gov.