RH News | Archive

December 30, 2003

Dear Livestock Agent:

Most of you have seen the announcement from RMA that Livestock Risk Protection (LRP) sales were temporarily suspended on December 24th “pending further review of market conditions.” The announcement stemmed from the discovery of mad cow disease in the U.S. and the corresponding volume of LRP sales the evening of the December 23rd. During this timeframe, Rain and Hail’s RMA approved livestock premium volume was exhausted for all livestock programs.

Rain and Hail has always participated in pilot programs and will continue to do so. In the case of livestock, sufficient premium approval was requested to test the program under normal circumstances. In view of the current livestock market conditions, no additional premium approval will be requested for the 2004 crop year. Rain and Hail believes livestock coverages will play an important role in addressing the risk management needs of livestock producers in the future. Rain and Hail will reevaluate its position prior to the start of the 2005 crop year (July 1, 2004) after the LRP and LGM programs undergo further review and refinement.

Thank you for the business you place with Rain and Hail.

Dan DeLano
National Marketing Manager