Cattle

Background

The Federal Crop Insurance Corporation's (FCIC) Board of Directors (Board) approved revisions of the Livestock Gross Margin (LGM) for Cattle, Dairy Cattle, and Swine plans of insurance on March 27, 2019, submitted under Section 523(b) of the Federal Crop Insurance Act.

The revisions include removing the following program limitations for the 2020 crop year starting July 1, 2019:

Background

Approved Insurance Providers (AIPs) are required to conduct reviews of eligible livestock price insurance contracts as described in Appendix IV of the LPRA. These reviews are intended to address suspected anomalies and program integrity concerns, or to assure that a company’s internal control processes are operational and effective. The required reviews include Data Mining Reviews, Individual Policy Reviews, Conflict of Interest Reviews, and $200,000 Indemnity Reviews.

Background

The Margin Protection Program for Dairy (MPP-Dairy), administered by the Farm Service Agency (FSA), and the Livestock Gross Margin for Dairy policy (LGM-Dairy), administered by the Risk Management Agency (RMA), offer similar risk management protection for dairy producers. Under the Federal Crop Insurance Act, producers are prohibited from participating in both programs at the same time.

Background

The Federal Crop Insurance Act limited the amount of funds available to support livestock plans of insurance to $20 million per fiscal year. On February 9, 2018, the Bipartisan Budget Act of 2018 was signed into law removing the $20 million fund limitation placed on livestock plans of insurance offered by the Risk Management Agency (RMA).

Applied Analytics Group (AAG), the developers of the Livestock Risk Protection – Fed Cattle/Feeder Cattle/Swine (LRP-Fed Cattle/Feeder Cattle/Swine) plans of insurance, advised the Federal Crop Insurance Corporation (FCIC) Board of Directors (Board) of their intent to continue maintenance of the LRP-Fed Cattle/Feeder Cattle/Swine plans of insurance and charge a user fee to approved insurance providers (AIP) selling the plan.