News & Events

2023 Crop Year: Changes to Livestock Risk Protection & Livestock Gross Margin

As explained in previous editions of this blog, Livestock Risk Protection (LRP) is designed to insure against declining market prices and Livestock Gross Margin (LGM) protects against the decline in gross margin. No other perils are covered under these policies. The RMA has released significant changes to the LRP and LGM policies for the 2023 crop year. These changes will affect fed cattle, feeder cattle, policy availability, and requirements for both LRP and LGM.

Summary of Significant Changes for LRP and LGM 2023 Crop Year

LRP

Fed Cattle:

Head limit increased to 12,000/endorsement and 25,000/crop year.

Increased target weight: 10.00-16.00

Feeder Cattle:

Head limit increased to 12,000/endorsement and 25,000/crop year.

Increased target weights:

Type 1 and Unborn Calves: 1.00-5.99

Type 2: 6.00-10.00

Additional Changes:

• Insureds can now have concurrent LRP and LGM policies but may not have coverage on the same class of cattle with the same end month or have the same cattle insured under both policies.
• In order to receive an indemnity, proof of ownership within 60 days of the coverage ending, must be provided. If no sale occurred before the end date, a document stating that the cattle were not sold must be provided.
• Requirements for acceptable documentation for proof of ownership and sales have been added.

LGM

• Now available in all 50 states.
• Can have concurrent LRP and LGM policies but may not have coverage on the same cattle class with the same end month or have the same cattle insured under both policies.
• Insured can now elect to receive indemnities without applying the loss to the relative endorsement premium or the premium for endorsements that have not yet ended.

To learn more about these products please visit our website agriskadvisors.com under Risk Management Solutions or Resources.

 

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