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.