USDA Adds New Benefits for Dairy Revenue Protection, Livestock Risk Protection
USDA announced Wednesday the update of both Dairy Revenue Protection (DRP) and Livestock Risk Protection (LRP) insurance. The updates to these viable livestock coverage options come with an effort to reach more producers while offering greater flexibility for U.S. swine, dairy and cattle producers. Both coverage options help bring stability during a time of market volatility and uncertainty fueled by supply chain challenges. The updates were published last week for the 2023 crop year, which begins July 1, 2022.
DRP is designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level and LRP provides protection against price declines. Producers will now have more flexibility for DRP and LRP, when indemnities are used to pay premiums, which can help producers manage their operation’s cash flow.
>> DRP producers are now able to continue coverage even after a disaster, such as a barn fire, hits their operation. RMA also revised the policy to clarify that the termination date is June 30. Cancellation during a crop year to submit an application for another DRP policy with a different insurance provider within the same crop year is not allowed.
>> LRP updates include increased head limits for fed cattle, feeder cattle and swine; while also requiring eligible indemnities be paid within 30 days (previously 60 days). The termination date has also been extended from June 30 to August 31.
These enhancements and more build upon other USDA efforts to improve safety net programs for livestock producers. ProAg is proud to offer both DRP and LRP as risk management solutions. Reach out to your crop insurance agent or contact us with any questions!