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| Features |
Livestock Risk Protection |
Livestock Gross Margin |
| First Sales Date |
July 8, 2002 |
July 15, 2002 |
| Sales Closing Date |
Continuous |
July 31 and January 31 |
| Availability |
Offered as a pilot program to Swine Producers in all Iowa
counties |
Offered as a pilot program to Swine Producers in all Iowa
counties |
| Coverage Levels |
70% to 95% |
80%, 85%, 90%, 95%, 100% |
| Producer Premium Subsidy |
13% |
0% |
Policy Limits
(head insured) |
32,000 per
reinsurance year and 10,000 Specific Coverage Endorsement (SCE) |
30,000 per
reinsurance year and 15,000 per six month period |
| Insurance Period |
90, 120, 150, and 180 days |
6 months, (Aug-Jan and Feb-July) |
| Coverage Provided |
Protects against declining hog prices if actual ending value
drops below producer's selected coverage price. |
Pays an insured if the actual gross margin (hog price minus
feed costs) for market hogs sold during the coverage period
is less than the gross margin guarantee for the coverage period. |
| Price Discovery |
Indicative pricing of the Chicago Mercantile Exchange (CME)
lean hog futures contract on date of application and again on
last day of insurance period. |
CME lean hog futures contract for hog price. CBOT corn and
soybean meal contracts for feed costs. Expected prices are calculated
at the beginning of the insurance period. Actual prices are
calculated at the end of each policy month. |
| Assumed Market Weight |
Producers enter their estimated target weight, convert live
weight to lean carcass weight using .74 factor. |
260 lb. live hog converted to a 1.924 cwt. lean carcass using
.74 factor. |
| Record Requirements |
Upon request, producers provide documents verifying ownership
of the livestock identified in the policy. |
Producers must submit Target Marketings with application,
subject to company review and underwriting limitations. If loss,
producers submit Marketing report and sales receipts, showing
evidence of actual marketings. |
| RMA Reviews |
5% Underwriting review and 5% Claims review |
5% Underwriting review and 5% Claims review |
Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM) are federally reinsured
products.
The U.S. Department of Agriculture (USDA) prohibits discrimination in its programs on the basis of race, color,
national origin, gender, religion, age, disability, political beliefs, sexual orientation, or marital or family
status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means
for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET
Center at 202-720-2600 (voice and TDD).
To file a complaint of discrimination, write USDA, Director, Office of Civil Rights,
Room 326-W, Whitten Building, 14th & Independence Avenue, S.W., Washington, D.C. 20250-9410 or
call (202) 720-5964 (voice and TDD).
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