August 7, 2009
Sales of the Livestock Risk Protection-Lamb (LRP-Lamb) plan of insurance will begin again on Sept. 14, according to U.S. Department of Agriculture's (USDA) Risk Management Agency (RMA). Sales under the 2009 and 2010 Livestock Risk Protection (LRP) Lamb Specific Coverage Endorsements were suspended due to the unavailability of pricing information and was no longer available for sale.
The American Sheep Industry Association's (ASI) Sheep Venture Company (SVC) and the Livestock Marketing Information Center have been working with RMA and the Federal Crop Insurance Corporation (FCIC) for nearly a year on several enhancements to LRP-Lamb.
As a result the RMA published the following informational memorandum:
"On June 25, 2009, the Federal Crop Insurance Corporation (FCIC) Board of Directors approved a number of program changes, including:
- A new pricing procedure that uses a lamb carcass price converted to a calculated live price using Agricultural Marketing Service (AMS) data;
- The addition of a 20-week endorsement;
- Expansion to the state of Washington; and
- A reduction in the maximum size of the Specific Coverage Endorsement from 7,000 head to 2,000 head.
A new LRP Lamb Specific Coverage Endorsement, 2010-1-LRP Lamb, reflecting the above changes is now available. Producers interested in purchasing an LRP Lamb Specific Coverage Endorsement will need to contact a crop insurance agent and complete an application that will be submitted through the approved insurance provider to FCIC. The Risk Management Agency (RMA) publishes a list of agents authorized by insurance providers to write livestock insurance on its Web site at http://www3.rma.usda.gov/tools/agents/companies/indexLPI.cfm."
"We are very pleased that this great risk management tool will once again be available to the sheep industry this fall ... the changes are very positive both for the sustainability of the program and its usefulness to producers," said Margaret Soulen Hinson, SVC president and ASI vice president.
The 2010 reinsurance year LRP-Lamb materials may be accessed on the RMA Web site from the Livestock page at http://www.rma.usda.gov/livestock/.