John Shea, 202-690-0437
UPDATE ON FUNDING FOR LGM-DAIRY INSURANCE PROGRAM
WASHINGTON, Feb 24, 2011 - RMA today announced that it has taken measures to manage available funds for the Livestock Gross Margin- (LGM) Dairy insurance pilot program.
LGM-Dairy became a very popular insurance program when it was improved last summer by moving the premium due date until after the coverage period ends, and by putting in place graduated producer premium subsidies. These changes, plus a concerted effort among industry groups to promote the LGM-Dairy policy, resulted in recent significant increases in LGM-Dairy sales.
The Federal Crop Insurance Act authorizes expenditures for associated costs for all livestock pilot programs to a maximum of $20 million per fiscal year. RMA currently reinsures eight livestock pilot programs, including LGM-Dairy.
To date, approximately $5.4 million in underwriting expenditures have been used for LGM-Dairy. In light of the large increases in sales for LGM-Dairy, for fiscal year 2011, RMA has made available $15 million for authorized expenditures to support the sales, while continuing to have adequate funds available for the other livestock programs, based on historical spending.
Sales of LGM-Dairy occur the last Friday (business day) of each month starting at 5 p.m., and closing at 8 p.m. the next day. The next sales period for LGM-Dairy will be Feb 25-26, 2011.
For further information on LGM-Dairy policies, please contact your local crop insurance agent.