Livestock Risk Management products are in high demand, showing “astronomical” growth, according to USDA’s Risk Management Agency Administrator Marcia Bunger. Bunger told National Cattlemen’s Beltway Beef podcast that insurance products like Livestock Risk Protection and Livestock Gross Margin are extremely popular.
Bunger says, “LRP grew by 250 percent in two years. We have about 27 million head of cattle that are insured. LGM grew by 600 percent over the last two years. And that is insuring about 14-and-a-half million head of livestock.”
But those aren’t the only products growing in popularity. She says, “With regard to Pasture, Rangeland, and Forage, I believe now the statistic is there’s more acreage insured under PRF than there are, corn, wheat, and beans, combined.”
Bunger admits such insurance products are not required but may be a financial necessity. She says, “It may not be required by the government, but I believe most lenders anymore require some type of risk management coverage, especially with crops.”
The supports for which are likely to again be a top priority in any new farm bill. This month through March, the RMA is hosting a series of in-person and virtual workshops for producers on risk management tools, with the schedule posted at rma.usda.gov.
