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Jul 07, 2023
The USDA Risk Management Agency (RMA) offers three federally subsidized insurance programs specific to livestock producers. These programs include:
Livestock Gross Margin (LGM)
Dairy Revenue Protection (DRP)
Additionally, the Rainfall Index insurance program includes:
These federal crop insurance programs run on a “reinsurance calendar” year starting July 1 and ending June 30 of the following year. For example, reinsurance year 2024 began July 1, 2023 and will end June 30, 2024.
For the Livestock Risk Protection (LRP), Livestock Gross Margin (LGM) and Dairy Revenue Protection (DRP) insurance programs, the transfer or cancellation deadline is June 30 prior to the start of the new reinsurance year. If a producer wants to change their agent, switch to a different insurance company or cancel their policy for the upcoming year, the transfer/cancellation application needs to be completed and signed by the June 30 deadline.
If the producer is new to LRP, LGM or DRP, an application can be completed and signed anytime during the reinsurance year. Once an application is submitted and approved, the producer can then purchase coverage using a coverage endorsement throughout the year.
After coverage is purchased, premium is billed at the end of the coverage period.
For LRP, the premium billing date is the first of the month following the month in which the coverage ended. For example, if the coverage period ends October 14, the billing date is November 1.
For LGM, the premium billing date is the first day of the month following the last month of the coverage period in which the insured has target marketings or in which the coverage period ended. For example, if the coverage period is February-December, and the insured only has target marketings in March-May, the billing date is June 1.
For DRP, the premium billing date is the 25th of the month following the month in which the coverage ended. For example, if the coverage period is October-December, the billing date is January 25.
Pasture, Rangeland and Forage (PRF) and Apiculture insurance are classified under Rainfall Index insurance coverage. PRF, which was developed to support ranchers and hay producers by giving them the opportunity to insure their forage grown for grazing and haying, is available in the 48 contiguous United States. Apiculture insurance, which covers bee colonies, uses a range of indexing systems to assess plant growth, which indicates varying levels of honey production.
December 1 is a key date for both PRF and Apiculture programs. This represents the sales closing date (for coverage between the following January through December), acreage reporting date and, if the insured wishes to transfer or cancel their coverage for the upcoming year, the date by which a transfer/cancellation application must be signed.
The PRF and Apiculture premium billing date is September 1 of the following year after the sales closing date. For example, a December 1, 2023 sales closing would have a premium billing date of September 1, 2024.
Annual Forage insurance, which covers against lack of precipitation on acreage planted annually for use in grazing or as hay for livestock, also falls under Rainfall Index insurance coverage.
The sales closing date for Annual Forage is July 15. This is also the date by which a producer must submit a transfer/cancellation application.
Under Annual Forage, there are four acreage reporting dates that align with the four different growing seasons:
October 15
January 15
April 15
July 15
The Annual Forage premium billing date is August 30 of the following year after the sales closing date. For example, a July 15, 2023 sales closing would have a premium billing date of August 30, 2024.
FBN is more than just insurance. Whether you raise cattle, dairy, apiculture, or swine, FBN has the expertise to serve producers of all sizes. With our Farmers First® approach always top of mind, our agents are here to build a loyal relationship with you, ensuring stability and trust in times of market loss, mortality loss or unexpected peril.
To speak with an agent and learn more about our available coverage options, please click here or call (866) 878-7133.
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We are an Equal Opportunity Provider. FBN Insurance services are offered by FBN Insurance LLC (dba FBN Insurance Solutions Services LLC in Texas, and FBN Insurance Solutions LLC in California and Michigan). FBN Crop Insurance is currently offered in all U.S. states.
Jul 07, 2023