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Seminar on Livestock Risk Protection Insurance set for Aug. 30 in Grand Island
LINCOLN, Neb., (NC)--The U.S. Department of Agriculture's Risk Management Agency has announced that sales of the Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM) insurance policies will resume Oct. 1. To assist producers in learning about the risk protection policies, Nebraska Cattlemen will help host a seminar Aug. 30 at the Howard Johnson Riverside Inn (3333 Ramada Road) in Grand Island.
Presentations by marketing professionals and UNL Extension staff will include new LRP products, how to develop and implement a marketing plan and other price risk management tools available for livestock producers. David Bossman, who was one of the original developers of the LRP program, is also scheduled to speak. USDA RMA staff will also be attending.
Registration will be from 8 a.m. to 9 a.m., and the seminar will conclude at 4:15 p.m. The seminar is free, but there will be a nominal charge for lunch.
LRP is designed to insure against declining market prices. The policy is available for swine, feeder cattle, and fed cattle in selected states. Producers may select from a variety of coverage levels and periods of insurance.
Sales for LRP feeder cattle and fed cattle were suspended on Dec. 23, when bovine spongiform encephalopathy (BSE) was detected in Washington. Several modifications were made to LRP that led to the approval for resumption of sales. The LRP sales period was changed to the time starting after validation of prices and rates at the close of a business day and ending on the following day at 9 a.m. central time. Procedures provide for long-term suspension and resumption of sales in cases of catastrophic events or highly volatile futures market prices. Also, there is a new daily limit of premium by class of livestock. Provisions were added to suspend sales for any endorsement period that involves rating based on a futures contract that is up or down the limit allowed by the Chicago Mercantile Exchange (CME).
Nebraska is a particularly important state for LRP products. Based on premiums, Nebraska producers purchased over 70 percent of the fed cattle LRP contracts and nearly 50 percent of all LRP contracts last year.
The seminar is part of a grant Nebraska Cattlemen, the Nebraska Pork Producers and Nebraska Farm Bureau Federation received from RMA to conduct education programs on the LRP products.
More information is available on the RMA web site: http://www.rma.usda.gov/news/pr/2004/08/812livestock.html.
The Nebraska Cattlemen Association (www.nebraskacattlemen.org) serves as the spokesman for the state's beef cattle industry and represents professional cattle breeders, ranchers and feeders, as well as county and local cattlemen's associations. Its headquarters are in Lincoln, and a second office in Alliance serves cattlemen in western Nebraska.
Date: 8/25/04
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