FPJ0901 - Edwards, W, Hart, C, Introduction to the US livestock revenue insurance system
Edwards, W, Hart, C, Introduction to the US livestock revenue insurance system, Farm Policy Journal Vol9 No4 pp 47-51, Australian Farm Institute, Sydney.
Livestock producers face high financial risks from volatile commodity prices and feed costs. The Risk Management Agency (RMA) of the United States Department of Agriculture (USDA) has approved two revenue insurance products to help livestock producers manage this risk: Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM). Both policies can be purchased through approved crop insurance providers in the major production areas in the United States. Premiums may be partially subsidised by the USDA, depending on the species. LRP and LGM protect against declining livestock prices and rising feed prices. Losses due to disease, weather, or other causes are not insured. LRP started in 2002 with swine coverage for Iowa producers. Since then, the product has expanded to cover more states and types of livestock, including cattle. Lamb coverage was added in 2008. LGM started at roughly the same time for Iowa hog producers. Cattle coverage was added in 2006 and dairy coverage started in 2009. Both products continue to evolve in geographic and livestock species coverage.
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Farm Policy Journal, Vol. 8, Number 3, Spring 2011, A private future for food and fibre quality, Australian Farm Institute, 76 pp
ISSN: 1449-2210 (print), 1449-8812 (online)
Historically, public authorities specified safety and quality standards for agricultural products, and provided reassurance to consumers that products were safe. Increasing consumer demands and the rise of food and fibre brands, and retailer brands have led to the development of private quality and safety standards. These private standards are a form of risk management for food and fibre brands, and retailers; but also create barriers to entry and exit for farmers supplying these brands and retailers. The Spring 2011 Farm Policy Journal sheds light on the pros and cons for the farming sector of these new trends – analysing impacts on domestic and international trade and economics. The Journal also provides useful tools for upgrading your knowledge of this topic, including a lexicon, and case studies from China and South-East Asia.