September 10, 2009
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- Sheep producers will be glad to hear that the Livestock Risk Protection-Lamb (LRP-Lamb) insurance will again be available for sale on Monday, Sept. 14. LRP-Lamb is designed to insure against unexpected declines in the market prices of slaughter lambs.
"In June, the Federal Crop Insurance Corporation (FCIC) approved enhancements to the LRP-Lamb product that were critical for the continuation of this price risk insurance," stated Glen Fisher, president of the American Sheep Industry Association (ASI). "These changes are positive for the sustainability of the program and its usefulness to producers."
The modifications to the product include:
- a move from utilizing the Agricultural Marketing Service (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 additional of a 20-week endorsement to better fit the production and marketing cycles of especially the range operations;
- the expansion of the LRP-Lamb pilot states to include Washington; and
- a change in the limits of an individual Specific Coverage Endorsement from 7,000 head to 2,000 head beginning with the 2010 crop year while still allowing a producer to insure up to 28,000 lambs per crop year.
"As in the past, preliminary rates should be available for review on Friday," commented Fisher. "I think the availability of LRP-Lamb insurance comes at a time when the industry will really be able to benefit from this product."
ASI has updated the LRP-Lamb Education Course which is available at www.sheepusa.org. This course is designed as a tool for producers and agents to learn more about the product and to offer scenarios to assist with the decision to purchase the insurance.
To view the preliminary rates published each Friday afternoon, as well as the actual rates published each Monday morning, go to www3.rma.usda.gov/apps/livestock_reports/.
ASI is the national trade organization supported by 45 state sheep associations, benefiting the interests of more than 82,000 sheep producers.