Date
To
All Approved Insurance Providers
All Risk Management Agency Field Offices
All Other Interested Parties
All Risk Management Agency Field Offices
All Other Interested Parties
From
Richard H. Flournoy, Deputy Administrator
Subject
Changes to Livestock Risk Protection for Feeder Cattle, Fed Cattle, and Swine Effective for the 2021 and Succeeding Crop Years
The Federal Crop Insurance Corporation's (FCIC) Board of Directors (Board) approved changes to the Livestock Risk Protection (LRP) plan of insurance for Feeder Cattle, Fed Cattle, and Swine, under section 508(h) of the Federal Crop Insurance Act, on May 21, 2020. The Board approved the following changes requested by Applied Analytics Group, the submitters of the LRP plan of insurance:
- Allow premium to be paid at the end of the endorsement period;
- Increase premium subsidy: Premium subsidy will increase based on the coverage selected by the livestock producer as outlined below:
| Coverage Level | Current Subsidy Level | Revised Subsidy Level | |
| Low | High | ||
| 0.7 | 0.799999 | 35% | 35% |
| 0.8 | 0.899999 | 30% | 35% |
| 0.9 | 0.949999 | 25% | 30% |
| 0.95 | 1 | 20% | 25% |
The Risk Management Agency (RMA) is working with Applied Analytics Group and the Approved Insurance Providers to get these changes implemented by July 1. If you have any questions, please contact Michael Ciliege or Cody Lovercamp, Product Administration and Standards Division at (816) 926-7730.
DISPOSAL DATE: December 31, 2020