June 26, 2009
The Federal Crop Insurance Corporation (FCIC) in a meeting late yesterday approved modifications to the Livestock Risk Protection-Lamb (LRP-Lamb) insurance product that were submitted by the Sheep Venture Company. The U.S. Department of Agriculture's Risk Management Agency (RMA) is in charge of implementing these changes.
"The changes approved are critical for the continuation of LRP-Lamb insurance," commented Glen Fisher, president of the American Sheep Industry Association (ASI). "We are pleased the FCIC board directed RMA to move forward quickly so that LRP-Lamb can again be available to producers and feeders as a tool to manage unexpected declines in market lamb prices."
The changes recommended include:
- a move from utilizing the Agricultural Marketing Service's (AMS) "formula live" price series to using the AMS "formula carcass" price series converted to a live basis by use of the dressing percent to establish coverage;
- the addition of a 20-week endorsement to better fit the production and marketing cycles of range and inter-mountain operations;
- the expansion of the LRP-Lamb pilot states to include Washington; and
- changing the limit for an individual Specific Coverage Endorsement from 7,000 head to 2,000 head beginning with the 2010 crop year.
The FCIC Board recommended that RMA craft the policy changes as quickly as possible in an effort to allow for the resumption of the sale of LRP-Lamb at the earliest possible date.