USDA Updates Livestock Insurance Options to Offer Better Protection, Flexibility

The U.S. Department of Agriculture has updated three key crop insurance options for livestock producers: the Dairy Revenue Protection (DRP), Livestock Gross Margin (LGM), and Livestock Risk Protection (LRP). 

USDA’s Risk Management Agency (RMA) revised the insurance options to reach more producers, offer greater flexibility for protecting their operations, and ultimately, better meet the needs of the country’s swine, dairy, and cattle producers. 

The updates were published last week for the 2023 crop year, which begins July 1, 2022.  

“Great and sound customer service is the most important thing we can provide our nation’s producers, making sure the programs and products we offer give them the most useful tools for covering their risks,” said RMA Administrator Marcia Bunger. 

“Agriculture is not a static industry, and these updates reflect the importance we place on always knowing the evolving needs of producers and offering the most people the best risk management tools we can.” 

Producers will now have more flexibility for DRP, LGM, and LRP, when indemnities are used to pay premiums, which can help producers manage their operation’s cash flow. 

With these updates, producers can now have both LGM and LRP policies, although they cannot insure the same class of livestock for the same time period or have the same livestock insured under multiple policies.