Crop Insurance Today Fourth Quarter 2022 - 34

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LIVESTOCK Insurance PLAN COMPARISON
Dairy Revenue
Protection
ABBREVIATION
CODE
DRP-Plan 83
DRP is designed to insure
against unexpected declines
in quarterly (3-month periods)
revenue from milk sales relative
to a guaranteed coverage
level. The expected revenue is
based on futures prices for milk
and dairy commodities, and
the amount of covered milk
production elected by the dairy
producer. The covered milk
production is indexed to the
state or region where the dairy
producer is located. "
PLAN CODE
DRP
83
Milk production from dairy
cattle, insured under:
Coverage On
* Class Pricing Option (considers
CME futures for Class III and Class
IV milk) or
* Component Pricing Option
(considers CME futures for butterfat,
protein, other solids, nonfat solids)
Weight
Categories
Available In (States)
N/A
All states
LGM-Cattle
82
Steer and heifer cattle
operations, primarily for beef
production:
* Calf Finishing
* Yearling Finishing
LGM-Dairy Cattle
82
LGM-Swine
82
LRP-Fed Cattle
81
LRP-Feeder Cattle
81
Milk production from
dairy cattle, milk should be sold for
commercial or private sale primarily
for human consumption
Hog and pig operations:
* Farrow to Finish
* Feeder Pig Finishing
* Segregated Early Weaned (SEW)
Fed Cattle (steers or heifers),
already born
Calves, steers, heifers, predominantly
Brahman, predominantly dairy, or
unborn calves. For unborn calves:
Producer must also own the pregnant
cow, and calves must be born by
endorsement end date)
LRP-Swine
81
Lean hogs or unborn swine. For unborn
swine: Must be born by endorsement
end date, and producer or person with
substantial business interest in the producer
must have an ownership interest in
the entity that owns the pregnant sows.
Max insurable unborn swine is proportional
to ownership in the pregnant sows.
Example in LRP BP.
Started around 550 lbs or 1-year-old
and raised to slaughter weight
All states
N/A
260 lbs at end date (or as stated in the
special provisions)
All states
All states
1,000 to 1,600 lbs at end date
Two categories:
* Under 600 lbs
* 600-900 lbs
All states
All states
1.50 to 2.25 lean hundredweight (~203 to
304 lbs on a live basis)
All states
Current as of November 2022 ©2022 National Crop Insurance Services
Livestock
Gross Margin
LGM-Plan 82
LGM covers the difference between the gross margin guarantee and the actual gross margin.
LGM does not insure against death or any other loss or damage to your livestock or milk
production.
Livestock
Risk Protection
LRP-Plan 81
LRP programs are designed to insure against declining market prices. All coverage is for livestock
the insured has a share in as an owner as defined by the LRP policy. An insured can purchase
Specific Coverage Endorsements (SCEs) year-round, with a new sales period occurring each
business day, unless markets are closed or trading of associated futures contracts are
suspended as indicated in the LRP policy.
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