New Insurance Options for Iowa Pork Producers

July-September 2002

Terry Steinhart , swine field specialist


Situation

Independent pork producers will have to limit financial risk in order to stay independent. Corporate producers need to manage downside market risk. One method being piloted in Iowa is livestock insurance.

Response

Iowa State University Extension, Iowa Pork Industry Center and Iowa Pork Producers Association have joined together to produce an Iowa Communication Network (ICN) program to inform producers of the new insurance options. Two insurance representatives presented options for Livestock Gross Margin Insurance and Livestock Risk Protection Insurance. John Lawrence and William Edwards looked at how the insurance could be used to reduce price risk. Nineteen sites were chosen for the ICN broadcast. One hundred and forty one producers, industry leaders and extension personal attended the local ICN sites.

Impact

As a result of this meeting 95% of the responders said that they understood the difference between Livestock Gross Margin Insurance and Livestock Risk Protection Insurance. Seventy-nine percent of the producers said they learned how to use swine insurance as a risk management tool. The information the speakers presented was rated from 74% to 83% good or excellent.

 

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