WASHINGTON, D.C. – Commercial cattle producers in South Dakota, Nebraska, Colorado and Texas may be eligible for USDA’s Weaned Calf Risk Production (WCRP) insurance.
According to USDA Risk Management Agency administration Marcia Bunger, Mitchell, SD, the idea for the insurance came through a private submitter. If the pilot project is determined to be workable and marketable, more states will probably be added to the project, she said. At this time, the new risk-management product only covers spring-born calves
Features of the program effective for 2024 and succeeding crop years include:
Actual Production History (APH) coverage for beef cow-calf producers in Colorado, Nebraska, South Dakota, and Texas;
Coverage for adverse weather, fire, wildlife, earthquake, volcanic eruption, disease (but not damage due to insufficient or improper application of disease control measures), other causes directly damaging pastures and other forms of grazing, calf death due to a covered peril occurring during the insurance period, and for revenue protection a change in harvest price from projected price;
Coverage levels between 50 and 85 percent, and catastrophic (CAT) coverage will be available; and
The sales closing date for the 2024 crop year is January 31, 2024.
The following documents are available on the Risk Management Agency (RMA) website at www.rma.usda.gov/Policy-and-Procedure/Insurance-Plans/Livestock-Insurance-Plans:
Weaned Calf Risk Protection Commodity Provisions (24-0805)
Weaned Calf Risk Protection Commodity Exchange Price Provisions (24-CEPP-0805)
Weaned Calf Risk Protection Insurance Standards Handbook (20805U)
Weaned Calf Risk Protection Loss Adjustment Standards Handbook (20805L)
Weaned Calf Risk Protection Regional Factors and Price Adjustment Factor Methodologies
Producers who retain ownership of their calves after weaning are also eligible to use the product.
The product is subsidized between 50 to 85 percent depending on the coverage selected by the producer.
Interested producers should contact a crop insurance agent for further information. A list of agents can be found on the RMA website at www.rma.usda.gov/Information-Tools/Agent-Locator. Agents are still undergoing training on the new product being offered through USDA.