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Contact:
John Shea, 202-690-0437

MARCH LGM-DAIRY INSURANCE PROGRAM UPDATE

WASHINGTON, Mar 22, 2011 - RMA today announced that approximately $3.5 million of underwriting capacity is available for Livestock Gross Margin-Dairy (LGM-Dairy) insurance sales during the March sales period.

LGM-Dairy was improved last summer by moving the premium due date until after the coverage period ends and adding graduated producer premium subsidies. These changes, plus a concerted effort among industry groups to promote LGM-Dairy insurance, 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 combined total of $20 million per fiscal year. RMA currently reinsures eight livestock plans of insurance that provide livestock coverage, including LGM-Dairy.

In light of the increase in sales for fiscal year 2011, RMA made $15 million of the $20 million available for authorized expenditures to support LGM-Dairy 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 close at 8 p.m. the next day. The next sales period for LGM-Dairy will be March 25-26, 2011.

For further information on LGM-Dairy policies, please contact your local crop insurance agent.

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