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
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.
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.