September 14, 2007
September 14, 2007 - Monday, Sept. 17, marks the first day producers and feeders can purchase the newly released Livestock Risk Protection-Lamb (LRP-Lamb) insurance product. LRP-Lamb is designed to insure against unexpected declines in market prices of slaughter lambs.
Sheep producers may select 13-week, 26-week or 39-week insurance periods as well as coverage levels ranging from 80 percent to 95 percent of the expected ending value to correspond with their general feeding, production and marketing practices.
As an additional service to the sheep industry and to help ensure the success of the pilot program, the American Sheep Industry Association (ASI) has created an insurance agency, Food and Fiber Risk Managers, LLC. (FFRM), to help market this product. FFRM can be reached on its toll-free number, 877-957-8006, or by e-mail at email@example.com
LRP-Lamb must be purchased through an insurance agent. It may be purchased on Monday each week with sales beginning at approximately 10 a.m. on Monday morning when rates and coverage prices are released and ending on that same day at 7 p.m. CST. Preliminary rates and coverage prices may be released the Friday evening prior for viewing over the weekend. Rates are available through the U.S. Department of Agriculture's Risk Management Agency's livestock reports main menu at http://www3.rma.usda.gov/apps/livestock_reports/.
Producers interested in purchasing LRP-Lamb will be required to complete an application that will establish eligibility. No insurance coverage attaches to the application until the producer submits a Specific Coverage Endorsement. The application can be completed in advance of Monday's sale date. The forms are available on the FFRM Web site at www.fafrm.com/quotes.html
The LRP-Lamb pilot is available to sheep producers with lambs located in all counties of the following 27 states: Arizona, California, Colorado, Idaho, Indiana, Illinois, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, New Mexico, Nevada, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Texas, Utah, Virginia, West Virginia, Wisconsin and Wyoming.
ASI has developed an online training course to educate producers and others on the details of LRP-Lamb. This course is available on ASI's Web site, www.sheepusa.org
. Staff contact: Peter Orwick, ext. 33