Every farmer knows there are uncontrollable risks when it comes to farming but what farmers may be less familiar with is ways to hedge against those risks. The USDA’s Risk Management Agency (RMA) is designed to help producers manage their business risks through effective, market-based risk management solutions.
RMA, through the Federal Crop Insurance Corporation, provides crop and livestock insurance to American farmers to protect against production or revenue losses.
There are several insurance programs available through RMA for livestock producers.
Livestock Gross Margin – cattle provides protection against the loss of gross margin (market value of livestock minus feed costs) on cattle. LGM-cattle uses futures prices to determine the expected gross margin and the actual gross margin. The sales period for LGM-cattle begins on the last business Friday each month and ends the following day at 8 p.m.
Livestock Gross Margin – swine provides protection against the loss of gross margin on swine. Covered operations are farrow-to-finish, feeder pig-to-finish and segregated early-weaned operations. The sales period for LGM-swine begins on the last business Friday each month and ends the following day at 8 p.m.
Livestock Gross Margin – dairy provides protection to dairy producers when feed cost rise or milk prices drop. Gross margin is the market value of milk minus feed costs. LGM-dairy uses future prices for corn, soybean meal and milk to determine the expected gross margin and the actual gross margin. The sales period for LGM-dairy begins on the last business Friday each month and ends the following day at 8 p.m.
Livestock Risk Protection – Fed Cattle is designed to insure against declining market prices. Beef producers may select from a variety of coverage levels and insurance periods that correspond with the time their market-weight cattle will be sold. LRP-Fed Cattle can be purchased throughout the year from approved livestock insurance agents.
Livestock Risk Protection – Feeder Cattle is designed to insure against declining market prices. Producers can select from a variety of coverage levels and insurance periods that best correspond with time their feeder cattle will be marketed. Coverage is available for calves, steers, heifers and dairy cattle. Feeder cattle producers may choose from two weight categories: under 600 pounds and 600-900 pounds. LRP-Feeder Cattle can be purchased throughout the year from approved livestock insurance agents.
Livestock Risk Protection – Swine is designed to insure against declining market prices. Pork producers can select from a variety of coverage levels and insurance periods that best match their operation. LRP-Swine can be purchased throughout the year from approved livestock insurance agents.
Livestock Risk Protection – Lamb is designed to insure against unexpected declines in market prices. Sheep producers can select from a variety of coverage levels and insurance periods that match general feeding, production and marketing practices. LRP-Lamb may be purchased weekly, on Mondays, throughout the year from an approved livestock insurance agent.
To contact a livestock agent near you visit ozarksfn.com, or contact the Regional RMA Office at: 785-228-5512.
