On October 1, 2004, the Risk Management Agency reinstated livestock revenue insurance for hog and cattle producers. Livestock Risk Protection (LRP) is available for hogs, feeder cattle and fed cattle in 19 different states, and Livestock Gross Margin (LGM) is available for hogs in Iowa. Livestock producers, insurance agents, agricultural lenders and extension agents need to understand how livestock revenue insurance can be used to control price risk.
Our presentation will cover several basic questions:
- How do LRP and LGM work? How do they differ?
- How can a livestock producer compare risk protection with livestock revenue insurance to other price risk management tools such as futures and options contracts, or packer contracts?
- What type of producer can benefit most from livestock revenue insurance?
- What tools and delivery methods can be use to educate producers, lenders and agents?
- What is the impact of insurance company liability limits and availability of reinsurance?
- Will future RMA products be based on the “option” approach to insurance?
Producers who utilize livestock revenue insurance will need to make decisions about the number of head to insure, the length of the endorsement period, and the level of guarantee to select.
Art Barnaby will emphasize the use of livestock revenue insurance for cattle producers, while William Edwards will discuss livestock revenue insurance for hog producers. We will demonstrate educational materials such as bulletins, discussion papers, slide sets and decision aid models, and discuss responses to educational programs that have been carried out.
|Conference||2005 National Extension Risk Management Education Conference|
|Presentation Type||60-Minute Concurrent|