John Shea, 202-690-0437
RMA Announces Expenditures for 2012 Livestock Insurance Program
WASHINGTON, Oct 19, 2011 - The U.S. Department of Agriculture's (USDA) Risk Management Agency (RMA) today announced its plans to fairly distribute the available funding for livestock insurance programs for the 2012 fiscal year. The Federal Crop Insurance Act limits expenditures for costs for all livestock pilot programs to a combined total of $20 million per fiscal year.
RMA currently provides eight plans of insurance which cover livestock. LGM-Dairy used approximately $16.2 million of the total funding during fiscal year 2011, while other livestock plans of insurance also experienced increased expenditures so that for the first time, the entire $20 million was used.
For fiscal year 2012, RMA is initially allocating $14.6 million to support livestock plans of insurance, holding $5.4 million in reserve, based on past sales expenditures and experience. RMA will closely monitor available funding for all livestock insurance plans and make adjustments, as necessary, to distribute available funding equitably. This may result in sales for particular plans of livestock insurance to cease if initial allocations are met.
Alternatively, if RMA determines that sales of other plans are not using initial allocations, adjustments may be made for sales of any plan initially exceeding its capacity to resume. RMA will work to reallocate funds during the fiscal year to minimize ceasing and restarting sales, taking into account the most fair and equitable distribution of funding to all available plans experiencing sales.
RMA helps producers manage their business risks through effective, market-based risk solutions. RMA's mission is to promote, support, and regulate sound risk management solutions to preserve and strengthen the economic stability of America's agricultural producers. Federal crop insurance provides support to American producers as part of the "farm safety net." A strong farm safety net is important to the vitality of American agriculture.
For more information about livestock plans of insurance, please contact your local crop insurance agent.
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