Changes Include:
– Modified the termination date to September 30th and the premium billing date to the first day of the second month after the end date.
– Added two new types:
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- For Feeder Cattle, Unborn Calves provided coverage for beef or beef/dairy cross calves sold within two weeks after birth; and
- For Fed Cattle, Cull Cows provided coverage for dairy cull cows with a coverage limitation of 13 weeks.
– Allowed coverage based on a forward contract or purchase agreement.
– Additional record requirement includes a copy of the purchase agreement and proof of delivery.
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- Added a drought exemption for Feeder Cattle that will be based on the Drought Monitor’s Drought Severity and Coverage Index.
– Updated the correction of errors language in the handbook and added similar language to the policy.
– Added additional record requirements for Feeder Cattle:
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- When livestock are purchased and not marketed within 60 days of the end date; and
- The sex of the feeder cattle must be verified in the marketing or purchase records.
– Added language that outlines what is considered subsidy capture and specifies subsidy capture is not allowable.
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- Essentially, subsidy capture is the act of attempting to profit from the difference between the subsidized LRP premium and other related market instruments. One tactic involves purchasing subsidized LRP and simultaneously selling a related exchange-traded put option, with the aim of capturing the premium difference as a credit.
– Updated the termination/ineligibility language.
– Added single payee changes.
Contact Our Insurance Team
Bobby Fisher
VP of Insurance Services
719-892-1677
Trista Gruntmeir
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