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PRODUCT MANAGEMENT BULLETIN: PM–20-035

United States Department of Agriculture


Farm and Foreign Agricultural Services


Risk Management Agency


1400 Independence Avenue, SW
Stop 0801
Washington, DC  20250-0801

Date

June 09, 2020

To:

All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties

From:

Richard H. Flournoy, Deputy Administrator /s/ Richard H. Flournoy    6/9/2020

Subject:

Changes to Livestock Risk Protection for Feeder Cattle, Fed Cattle, and Swine Effective for the 2021 and Succeeding Crop Years
Background

The Federal Crop Insurance Corporation's (FCIC) Board of Directors (Board) approved changes to the Livestock Risk Protection (LRP) plan of insurance for Feeder Cattle, Fed Cattle, and Swine, under section 508(h) of the Federal Crop Insurance Act, on May 21, 2020. The Board approved the following changes requested by Applied Analytics Group, the submitters of the LRP plan of insurance:

  • Allow premium to be paid at the end of the endorsement period;
  • Increase premium subsidy: Premium subsidy will increase based on the coverage selected by the livestock producer as outlined below:
Coverage Level Current Subsidy Level Revised Subsidy Level
Low High
0.7 0.799999
 35%
 35%
0.8 0.899999  30%
 35% 
0.9  0.949999 25%
 30%
0.95 1 20% 25%
Action

The Risk Management Agency (RMA) is working with Applied Analytics Group and the Approved Insurance Providers to get these changes implemented by July 1. If you have any questions, please contact Michael Ciliege or Cody Lovercamp, Product Administration and Standards Division at (816) 926-7730.


DISPOSAL DATE:
December 31, 2020

USDA is an Equal Opportunity Employer and Provider

  Risk Management Agency Office

  • 1400 Independence Ave. SW
    Washington, DC 20250