August 15, 2020

US hog farmers seek amendments to livestock risk protection programme

Hog farmers across the US have urged the Department of Agriculture's Federal Crop Insurance Corp. (FCIC) to institute changes in the Livestock Risk Protection (LRP) insurance programme that would mitigate the impact of unexpected declines in hog values due to unanticipated events like the COVID-19 pandemic.

In a letter sent on Monday, Aug. 10, to the FCIC, the National Pork Producers Council (NPPC) and 26 state pork associations representing thousands of American hog farmers called for LRP modifications such as an increased subsidy to make the programme more affordable to livestock farmers, particularly when a risk management programme is most needed but whose cost is often prohibitive.

"The COVID-19 crisis in our farm sector has demonstrated the enormous value of an enhanced LRP," said NPPC President Howard A.V. Roth, a hog farmer from Wauzeka, Wisconsin.

"The LRP changes we support, if enacted, would undoubtedly draw more hog farmer participants to the programme and help offset losses caused by catastrophic events like the one we are experiencing today."

In their letter, the hog farmers also asked for the expansion of the coverage period to 52 weeks and an increase in the number of head eligible. Risk management decisions in pork production are often made at least 52 weeks in advance. The current maximum coverage period of 26 weeks, combined with limitations on the number of pigs that can be covered, have significantly limited programme participation, they noted.

Last year, more than 120 million hogs were marketed in the US. Over the last 15 years, only once have more than 100,000 hogs fallen under LRP coverage due to programme limitations, the NPPC said in a news release.