KIA&B 2017 Vol. 22, No. 3 | Page 25

This plan provides protection against the loss of insured revenue due to an unavoidable natural cause of loss that occurs during the insurance period and will also provide carryover loss coverage if you are insured the following year. Livestock Products The extremely volatile conditions of the market often cause producers to have more questions than answers, especially in determining how to manage the downside effects on their business. Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM) are viable and flexible ways to manage the risk associated with price volatility, increasing production costs and tightening profit margins. Livestock Risk Protection is available for feeder cattle, fed cattle, lamb and swine and insures against a decline in market price s. Producers may select from a variety of coverage levels and insurance periods to match the time the animal(s) would normally be marketed. Coverage is purchased on a per head basis (up to specified limits) and is available year-round. At the end of the insurance period, if the actual ending value is below the coverage price, an indemnity would be paid for the difference. Livestock Gross Margin is available for dairy cattle, fed cattle and swine and insures against falling income and rising feed costs. Producers select the months within the insurance period that best fits their risk management plans. Coverage is purchased on a per head/cwt of milk basis up to specified limits. At the end of the insurance period, if the Actual Gross Margin is less than the Gross Margin Guarantee, the policyholder may receive an indemnity. Private Supplemental Products Every approved insurance provider carries their own line of privately offered supplemental insurance products. This line can include Crop Hail, Named Peril, Replant Option and other price-based products. Crop Hail provides supplemental, acre-by-acre coverage for hail, but can also provide coverage for fire, transit and vandalism. Named Perils provide supplemental coverage for wind and green snap, but vary by provider. Replant policies provide additional replant coverage on top of your underlying MPCI, APH or area policies and have crop and availability limitations depending on the provider. Price-based products provide protection against a loss of revenue, and similar to replant coverage, vary by provider and coverage area. | May - June 2017 | KANSAS INSURANCE AGENT & BROKER 23