Va. insurance agency joins forces with cattlemen’s association
DALEVILLE, Va. — Virginia Cattlemen’s Insurance Agency LLC is a new part of the Virginia Cattlemen’s Association that has been created to help the state’s cattle producers manage risk.
Brandon Reeves, executive secretary, explained that the agency is a wholly owned subsidiary of the VCA. The operating agreement between the two entities was agreed to at VCA’s last board meeting
“We are constantly looking for ways we can better serve our membership and we see risk protection as an incredibly important tool producers should consider to hedge against a volatile market,” he said.
“We are offering Livestock Risk Protection (LRP) and Pasture, Rangeland & Forage (PRF) insurance policies for cattle producers,” he said when asked about the new venture. “Several improvements have been made to LRP that make it an appealing risk management product.”
Reeves said the LRP polices are simple. Prices for policies are published by USDA at the end of each market day. If the price looks good, producers can purchase a policy for any number of owned cattle.
Producers can select the following services:
• Number of cattle insured (12,000 head/year limit)
• Policy Length (range is 13, 17, 21, 26, 30, 34, 39, 43, 47 or 52 weeks)
• Percent of price insured (varies…higher percentage costs a higher premium but gives you more coverage)
“One key element is that producers do not have to pay for LRP policies until the end of the policy,” he said.
This means that essentially the producer is only paying for the policy if the price of cattle goes higher than the coverage, they locked in.
Information about LRP and PRF will be made available to VCA members on the VCA website, through email and through handouts. Anyone interested in purchasing a policy should call Reeves to discuss the options and logistics. LRP policies are made available every day after markets close. PRF policies will be offered in the fall for 2022.
Reeves is the only agent for the insurance company at this time but the board is open to hiring other agents if needed in the future.
The association started exploring the idea early this year, he reported. There were several steps VCA had to go through to establish and license the agency and Reeves an agent.
VCA partnered with CGB Diversified Services Inc. as its AIP insurance provider.
However, the VCA board has complete oversight of the Virginia Cattlemen’s Insurance Agency.
The VCA Executive Board gave Reeves the resources and authority to explore the possibility of creating a livestock insurance agency. The association reported VCA partnered with former RMA Administrator Brandon Willis as a consultant to help guide them through the process of establishing an agency. Brandon Willis continues to help advise and consult with VCA.