BSE UPDATE: LRP PLANS OF INSURANCE FOR FED AND FEEDER CATTLE

WASHINGTON, Jan 9, 2004 - The U.S. Department of Agriculture's Risk Management Agency (RMA) continues to monitor and evaluate the effects of bovine spongiform encephalopathy (BSE), known as mad cow disease, on beef cattle market conditions. On December 23, 2003, RMA suspended applications for Specific Coverage Endorsements for Fed Cattle and Feeder Cattle under the Livestock Risk Protection (LRP) Insurance Policy after BSE was detected in the state of Washington. At this time, the suspension will be in effect until further notice.

The Federal Crop Insurance Corporation (FCIC) Board of Directors believes that RMA acted quickly and responsibly to the announcement. Furthermore, RMA is actively evaluating the rating structure and other components of the program that may be affected by the BSE development.

On December 30, 2003, USDA experts addressed the question of agency and program responses to the announcement of BSE. They stated that considering the circumstances and this being the first case of BSE in the United States, this was a rapid response. To view the transcripts of that press briefing, visit the USDA web site at www.usda.gov.

RMA will be providing further information as soon as it is available. Until this time, RMA's most current information can be found on its web site at www.rma.usda.gov.

Contacts:

• James Callan (202) 720-8812

Related items: News Release: USDA Halts Livestock Risk Protection Insurance Because of BSE | Livestock Risk Protection (LRP): Basic Policy (PDF) | Fed Cattle: Specific Coverage Endorsement (PDF) | LRP Insurance Pilot Program: Fed Cattle Factsheet (PDF) | Feeder Cattle: Specific Coverage Endorsement (PDF) | LRP Insurance Pilot Program: Feeder Cattle Factsheet (PDF) | LRP Policy Handbooks & Rules | APHIS BSE Information | FSIS BSE Information