February 17, 2006 -- On Wednesday, Feb. 15, the board of the Federal Crop Insurance Corporation (FCIC) met to further consider the pilot project for a lamb price-risk insurance product being proposed by the American Sheep Industry Association (ASI).
The meeting resulted in the FCIC board further engaging the assistance of the U.S. Department of Agriculture's Risk Management Agency (RMA). RMA is being asked to review the economic methodologies that can be used for model-based plans of insurance (such as the lamb proposal) and to make recommendations for actuarial soundness.
"We view the actions of the FCIC board as positive, constructive and the next step toward a pilot program," says Margaret Soulen-Hinson, Idaho sheep producer and point person on the Livestock Risk Protection-Lamb (LRP-Lamb) project. "We look forward to working with RMA on these broader parameters and toward offering this proposed insurance plan to our industry."
ASI and its development partners have been working with the FCIC board and RMA since October 2004 on the proposal for a LRP-Lamb pilot project. The design of the project allows producers and feeders to buy insurance to protect against unexpected declines in lamb prices.
The submission has been thoroughly reviewed by RMA and their outside experts. ASI also requested that a team of agricultural economists through the Livestock Marketing Information Center review the documents.
Recently, the National Sheep Industry Improvement Center identified the project as an important industry priority and joined ASI's development team to further this endeavor.
Staff contact: Paul Rodgers