USDA Announces Livestock Insurance Updates for 2027
Several significant changes are coming to USDA livestock insurance programs beginning with the 2027 crop year. The updates affect Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM), two programs used by cattle producers to help manage market risk.
Reach out to Tallgrass Legacy Alliance if you'd like to visit about these changes or help connecting with your local USDA office or crop insurance agent. We're always glad to help Ranchers and Landowners connect with information and resources. rma.usda.gov
Key Changes for Cattle Producers
Highlights
Higher Weight Limits
Several weight limits are increasing under both LRP and LGM:
- Higher maximum weight thresholds for Fed Cattle under LRP.
- LGM cattle coverage increased to a maximum insurable weight of 1,800 pounds.
- Higher allowable target weights for both feeder cattle and finished cattle.
Longer Cull Cow Coverage
Cull Cow coverage under LRP is being extended to as much as 52 weeks.
New Coverage for Unborn Livestock
USDA is adding three new feeder cattle categories:
- Unborn Bulls and Heifers Weight 2
- Unborn Brahman Weight 2
- Unborn Dairy Weight 2
The new categories cover unborn livestock in the 6.0 to 9.0 cwt weight range.
Changes Affecting Both Programs
USDA also announced several program-wide updates that will apply across livestock insurance programs:
- Updated Beginning Farmer or Rancher definitions and subsidy provisions.
- Allowance for concurrent coverage between similar livestock insurance programs.
- Clarified rules regarding when coverage can be transferred.
- Updated policy language for consistency across USDA insurance products.
- Policies that have not earned premium for three consecutive years may become subject to cancellation.
The USDA Risk Management Agency announced these updates on May 18, 2026. The changes will take effect beginning with the 2027 crop year.
Livestock Risk Protection (LRP)
Livestock Risk Protection helps protect producers against declining livestock market prices and currently offers coverage levels ranging from 75% to 100% of expected ending values.
Additional details announced by USDA include:
- Expanded forage disaster exemption guidelines to address extended drought and other natural disasters.
- Addition of specific grazing dates during which an exemption may apply.
- Increased maximum weight thresholds for Fed Cattle coverage.
- Extension of Cull Cow coverage to a maximum of 52 weeks.
- Addition of three new feeder cattle types:
- Unborn Bulls and Heifers Weight 2
- Unborn Brahman Weight 2
- Unborn Dairy Weight 2
- New unborn livestock categories will cover livestock in the 6.0 to 9.0 cwt range.
Livestock Gross Margin (LGM)
Livestock Gross Margin provides protection against unexpected declines in livestock gross margins by comparing livestock value and input costs.
Additional details announced by USDA include:
- Maximum insurable weight for LGM Cattle increased to 1,800 pounds.
- Maximum target feeder cattle weight increased from 9 cwt to 12 cwt for yearling finishing operations.
- Maximum target live cattle weight increased:
- From 15 cwt to 18 cwt for yearling finishing operations.
- From 13 cwt to 16 cwt for calf finishing operations.
- The difference between target live cattle weight and target feeder cattle weight may not exceed:
- 6 cwt for yearling finishing operations.
- 10 cwt for calf finishing operations.
- Producers must own calves for at least:
- Five months for yearling finishing operations.
- Eight months for calf finishing operations.
Changes Affecting Both Programs
USDA also announced several program-wide updates that will apply across livestock insurance programs:
- Updated Beginning Farmer or Rancher definitions and subsidy provisions.
- Allowance for concurrent coverage between similar livestock insurance programs.
- Clarified rules regarding when coverage can be transferred.
- Updated policy language for consistency across USDA insurance products.
- Policies that have not earned premium for three consecutive years may become subject to cancellation.
For complete details, producers should visit with their crop insurance agent or local USDA office to discuss how these updates may affect their specific operation. Tallgrass Legacy Alliance is also available to help Ranchers and Landowners connect with local resources and find additional information.