Question: Can dairy-on-dairy bull calves be covered under Unborn Calves type?
Answer: No. LRP Feeder Cattle SCE specifies:
(8) Unborn calves; with target weight of 0.6 – 0.99 cwt, for
calves expected to be sold within the first two weeks
after birth. Insurable calves include beef calves and
beef-on-dairy crossbred calves produced by crossing
dairy cows (including, but not limited to Holstein,
Jersey, Brown Swiss, Ayrshire, Guernsey, or Milking
Shorthorn) with beef bulls (including, but not limited to
Angus, Hereford, Simmental, Charolais, Limousin,
Wagyu).
Dairy-on-dairy calves, covered before birth, can only be covered under Unborn Predominantly Dairy type. PAF on that type is only 50% (0.5), and likely does not reflect market value of such calves. I’ve heard of cases where some agents were recommending to their insureds to deliberately declare target weight that is much higher than expected weight at sale. For example, if a producer were to declare a target weight of 325 lbs, when they really plan to sell calves at 100 lbs, that is equivalent to a target weight of 100 lbs if PAF were equal to 50% x 325/100 = 1.625 or 162.50%. We are contemplating improvements for RY2027 that would address this issue by introducing a mechanism for regular updates to dairy type PAFs, but for RY2026 it is important to understand that over-declaring target weight is a violation of the policy.
Target weight is clearly defined in the Feeder Cattle SCE as “The anticipated live weight of feeder cattle (per head) at the ending period […]”
As noted in the Insurance Standards Handbook on page 31:
By signing the SCE the insured is attesting that they expect the covered livestock to reach target weight by the end date. Declaring target weight that intentionally exceeds expected livestock weight at the end date (such as target weight that is either not biologically achievable given the endorsement length and livestock type, or not supported by the insured’s existing farming practices) is a willful and intentional provision of false and inaccurate information to the AIP and the FCIC, and subject to penalties as provided in Basic Provisions, Section 16(e), including disqualification from crop insurance and any other federal assistance for crop loss or a decline in the prices of agricultural commodities.