The USDA Risk Management Agency (RMA) has announced a series of updates to the Livestock Risk Protection (LRP), Livestock Gross Margin (LGM) and Dairy Revenue Protection (DRP) programs. These changes will take effect starting with the 2027 crop year.
Several updates apply to all three programs, including aligning the eligibility and subsidy percentages with the One Big Beautiful Bill Act and extending the definition of a beginning farmer/rancher to 10 years; adding subsidy capture language to address off-exchange contracts; permitting concurrent coverage between similar livestock programs; enabling policies that have not earned a premium for three consecutive years to be subject to cancellation; and revising language to clarify when and how insurance coverage can be transferred.
LRP protects producers against declining market prices. The new updates broaden the categories and coverage windows. Producers now can insure unborn calves in the 6 cwt. to 9 cwt. range (weight 2) for unborn bulls and heifers, unborn Brahman and unborn dairy. Cull cow coverage has been extended to 52 weeks and the maximum weight threshold for fed cattle has been increased. Additionally, new guidelines address extended drought and natural disasters, including specific grazing dates for exemptions.
LGM protects against unexpected decreases in gross margin (market value of livestock or milk minus input costs). The changes include increasing the maximum insurable weight for LGM cattle to 1,800 lbs., increasing maximum target feeder cattle weights to 12 cwt. for yearlings, requiring the producer to own calves for a minimum of five months for yearling finishing operations or eight months for calf finishing operations to qualify for LGM, and increasing the maximum target live cattle weight to 18 cwt. for yearling finishing operations and 16 cwt. for calf finishing operations.
For dairy producers, DRP protects against declines in quarterly revenue. The key update for this program was moving the sales period end date to the following calendar day, making DRP consistent with the structure used in other livestock insurance programs.
For more information or to apply, contact an RMA agent. To find an agent, click here.