Livestock risk protection subsidies changes on producer premiums

Purpose Livestock Risk Protection (LRP) insurance can reduce losses from price declines for cattle producers, but LRP adoptions has been limited. In 2019 and 2020, subsidies were increased to lower the cost, it is unclear how much these changes lowered cost. The objective of this research was estimate impact subsidy increase on cost feeder fed by month various period lengths levels. Design/methodology/approach authors collected United States offering data 2017 2021. estimated separate generalized least squares regression with producer premium as dependent variable. Independent variables dummy coverage level, period, year well in commodity years 2020 when increased. Findings found increases did policies policies. Producer premiums polices have declined between $1.41 $1.90 per cwt $0.95 $1.56 depending level. Results indicate costs producers. Originality/value show policy implications will be informative producers exploring LRP. This study extends literature estimating reduction while considering total changed.