March 15, 2004
Mar/Apr 2004 -- David Bossman of the American Feed Industry Association and Dr. Peter Griffin of Applied Analytics Group, Inc. presented to the American Sheep Industry Association's (ASI) board of directors the outline of a risk-management product being developed for the sheep industry.
Their role in the development of similar products for cattle and pigs provides a solid platform as they work with sheep producers and feeders in defining the insurance needs of the industry. The goal of the product is to protect against price declines and allow for upside price gains based on market pricing.
Through a grant ASI obtained from the National Sheep Industry Improvement Center (NSIIC), Bossman and Griffin can start to develop a lamb-price index based on regional lamb prices, which is necessary to create a price insurance program. Producers who participated in a focus group were able to help specify the features of the program, such as policy size, class of livestock, deductibles and length of coverage.
There is great optimism that the product will be available for purchase by the fall of this year.