USDA adds premium subsidies for Livestock Gross Margin insurance

Legislative Watch: Premium subsidies for livestock insurance; meat exports boost corn and soybeans; beef investigation shows no wrong-doing; ag trade advisers appointed.

 

P. Scott Shearer, National Hog Farmer 

Jul 24, 2020

 

USDA's Risk Management Agency will now provide premium subsidies for Livestock Gross Margin insurance program for swine and cattle beginning in the 2021 crop year. Premium subsidies are already a feature of crop insurance.

 

RMA Administrator Martin Barbre says, "These changes build upon RMA's continued effort to make livestock policies more affordable and accessible for livestock producers. We are working to ensure that these improvements can be implemented by the July 31 sales period so producers can take advantage of these changes as soon as possible."

 

The subsidies will be based on the deductible selected by the producer. For LGM-Swine, the subsidy will range from 18% with zero deductible up to 50% with a deductible of $12 or greater. For LGM-Cattle, the subsidy will range from 18% with zero deductible up to 50% with a deductible of $70 or greater.

 

Red meat exports boosts corn and soybeans

 

Corn and soybean producers benefit from pork and beef exports, according to a recent study by the U.S. Meat Export Federation. Since 2015, indirect exports of corn and soybeans through red meat exports have been the fastest-growing use of corn and soybeans.

 

The study which uses 2019 export data found:

 

Value of red meat exports' feed use of corn and soybeans ...

 

Value to U.S. corn and soybean crop from red meat exports ...

 

Update on investigation of beef market ... 

 

Appointments of ag trade advisers ...

 

ATAC for Trade in Animals and Animal Products ...

 

more

https://www.nationalhogfarmer.com/business/usda-adds-premium-subsidies-livestock-gross-margin-insurance