Livestock and Forage Insurance Products
Several insurance options are available for livestock and forage. Pasture, Rangeland, and Forage (PRF) insurance protects against losses in forage production due to lack of precipitation. Noninsured Crop Disaster Assistance (NAP) provides catastrophic level (50% of production and 55% of price) for grazing acreage. Additionally, RMA offers two programs to protect against revenue loss in volatile markets. These are the Livestock Gross Margin (LGM) and Livestock Risk Protection (LRP).
LGM insures against the loss of gross margin on livestock (revenue minus a the costs of feed), which is unique because it covers rising costs of feed in addition to livestock market volatility. In contrast, LRP only covers declining livestock prices. Premiums change daily in order to reflect current market conditions. Coverage options range from 70-100%. A decision tool that covers LRP and LGM can be found in the Crop Insu
Livestock can also be covered under Whole Farm Revenue Protection, or WFRP. This program is designed to insure all farm commodities under one policy, and provides subsidies to farmers with diverse operations involving multiple commodities. Whole Farm Revenue Protection is a good option for producers with livestock in addition to other commodities.
Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM):
- Revenue Insurance for Livestock Producers (Iowa State University, 2009)
- Livestock Risk Protection (LRP) for Fed Cattle (University of Nebraska, Lincoln Extension, 2014)
- RMA Cost Estimator (covers LRP and LGM)