The Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM) insurance policies are again being made available by the Agriculture Department as of Oct. 1.
The LRP insurance policy protects hog, feeder cattle and fed cattle producers from depressed market prices. The program was suspended last December due to the Washington State case of bovine spongiform encephalopathy.
Changes were made to deal with long-term suspension and resumption of the program due to catastrophes or highly volatile futures markets, according to the agency's Risk Management Agency (RMA).
The LGM pilot program also resumes Oct. 1 in all Iowa counties. It pays an indemnity to Iowa hog farmers 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 for the coverage period.
More information is available at www.rma.usda.gov.