April 23, 2019

2020 Crop Year Livestock Program Modifications

On April 22, 2019, RMA released bulletins PM-19-022, PM-19-023 and PM-19-024 regarding revisions to the Dairy Revenue Protection (DRP), Livestock Gross Margin (LGM) and Livestock Risk Protection (LRP) plans of insurance for the 2020 crop year starting July 1st, 2019.

DRP revisions include:

  • Coverage Level Adjustments: Removed the 70 and 75 percent coverage levels
  • Modify the minimum declared butterfat from 3.50 to 3.25 making the range 3.25 – 5.00 pounds
  • Modify the minimum declared protein from 3.00 to 2.75 making the range 2.75 – 4.00 pounds
  • Remove the declared butterfat test to declared protein test ratio
  • Extend the cutoff time for RMA to publish the daily offers from 4:00 to 4:30

LGM Feeder Cattle, Dairy and Swine revisions include removing the following program limitations:

  • LGM Cattle: Annual Head Limit of 5,000 per endorsement and 10,000 annually
  • LGM Dairy: Annual limit of 240,000 hundredweight of milk
  • LGM Swine: Annual Head Limit of 15,000 per endorsement and 30,000 annually

LRP Feeder Cattle, Fed Cattle and Swine revisions include:

  • Adjustment to Price Adjustment Factor for LRP Feeder Cattle: Modify the Price Adjustment Factor for Predominately Dairy to 50% for both weight ranges.
  • Expansion: LRP for Feeder Cattle, Fed Cattle and Swine will be expanded to all remaining states.
  • Increased premium subsidy rate: The subsidy will increase from the current 13% for all coverage levels to a range of 20% to 35% based on the coverage level selected. New levels are:
    20% Subsidy for 95 - 100% Coverage
    25% Subsidy for 90 - 94% Coverage
    30% Subsidy for 80 - 89% Coverage
    35% Subsidy for 70 - 79% Coverage
  • Per Endorsement Head and Annual Head Limit Modification: Fed Cattle and Feeder Cattle: 3,000 head per endorsement and 6,000 head annually; Swine: 20,000 per endorsement and 75,000 annually
  • Trading Requirements: Updated the trade requirements on when offers can be made. Currently, LRP endorsements can only be offered if there was a daily volume of five traded contracts.


The RMA also made minor corrections and clarifications in the LRP Basic Provisions and LGM Cattle, Dairy and Swine Basic Provisions.


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