News

“Crop Insurance” Doesn’t Tell the Whole Story


Certainly, insuring a wide range of crops is a big part of what we do at ProAg. But we are also a leader in providing a growing selection of risk management products to producers involved in all aspects of animal agriculture.

As the leading writer of Pasture, Rangeland, Forage (PRF) insurance in the country, ProAg helps farmers and ranchers protect their operations from the risks of forage or hay losses that impact their feed costs. We understand this product extremely well, and process applications and claims very efficiently.

While PRF helps protect livestock producers from lack of feed, two other products directly protect livestock-derived revenue. Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM) offer very different benefits to cattle, swine, sheep and dairy producers.
“LRP insurance allows a livestock producer to insure against declining market prices,” says Jacqueline Da Rocha, ProAg’s Western Region field representative. “In effect, they can put a floor under the price they will receive for their cattle, pigs or sheep.” This coverage is not available in every state, and coverage availability also varies by livestock type.

Jacqueline notes that while LRP is well suited to beef, swine and sheep producers, LGM is designed for the cattle, swine and dairy farmer. LGM-Dairy provides protection against the loss of gross margin (market value of milk minus feed costs) on milk production.
LGM uses the CME futures prices for corn, soybean meal and class III milk to determine the expected gross margin and the actual gross margin sold. The indemnity at the end of the insurance period is the difference, if positive, between the gross margin guarantee and the actual gross margin sold.

“One of the advantages of LGM-Dairy over the MPP-Dairy (Margin Protection Program for Dairy Producers) has been the fact that producers have to commit to MPP-Dairy for three years,” Jacqueline says. “The time commitment for LGM-Dairy is just the 11-month insurance period.” She adds that LGM Dairy and Swine is available to producers in the 48 contiguous states while beef producers need to check availability per state.

Much Smaller Livestock – Apiculture

The RMA Apiculture Pilot Insurance (API) program was expanded in July, adding 19 states, and now provides coverage to beekeepers in the 48 contiguous states. Coverage levels between 70 and 90 percent may be selected. Then, by selecting a productivity factor, the insured can establish a value between 60 and 150 percent of the county honey production base value. This insurance coverage is for a single peril—lack of precipitation.

“At ProAg, we continue to focus on products that will add to an agent’s risk management portfolio,” states Missy Waters, ProAg’s Senior Vice President of Marketing and Service. “Our team has worked hard to inform agents of the advantages of adding Livestock and PRF to their current business plan. These products allow agents to provide their growers with insurance solutions to help protect their complex farming and ranching operations.”

Detailed information on these programs is available on our website, ProAg.com on the Livestock or PRF/Apiculture product pages.

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