We are all working under challenging circumstances now. Livestock industries are under great strain in the wake of the coronavirus, particularly with packing plants closing.

A farmer who runs a hog operation in the Midwest recently reached out to RMA. He is a longtime user of swine Livestock Gross Margin (LGM) insurance. It has worked well for him and his wife’s business for years. While they keep excellent records, he explained that he couldn’t show proof of sales for their April LGM claim for the thousands of head still in their barns awaiting harvest. Since he had 15 days to turn in proof of sales, he was concerned and asked what his options were.

As a farmer myself, and having talked to LGM users around the country, I understood his anxiety. These are tough times, and we do our best at RMA to find solutions to help many folks in his shoes. However, sometimes the answers are right in front of us, and all it takes is a phone call.

After a brief discussion, we cleared up some confusion. He purchased insurance for March through August, and April was the first month that he had his hogs insured. When RMA released the April swine numbers early, his Approved Insurance Provider sent him a probable loss, and he didn’t have the numbers to file his claim. He also felt reluctant to submit numbers from the previous month. We informed him that based on the policy provisions, the reduction only applies if a farmer doesn’t meet the target marketings for the whole insurance period, and that he could in fact submit his March numbers without worry. He is working with his insurance provider now and is quite relieved.

If you ever have any questions or concerns about your policy, please reach out to your agent for clarification. We at RMA are also happy to hear from you! On our website, you will easily find contact information for your regional RMA office.

Martin Barbre is the Administrator for USDA’s Risk Management Agency. He has served as President of the National Corn Growers Association, a member of USDA’s Illinois Farm Service Agency State Committee, and is a long-time farmer from Carmi, Illinois.

Source: RMA USDA