LIVESTOCK RISK PROTECTION (LRP)
Protect Your Bottom Line with LRP
Livestock Risk Protection (LRP) is a government-subsidized insurance program designed to safeguard your farm or ranch against declining market prices. It allows you to establish a floor price for your market livestock without the burden of broker fees or a 50,000-pound minimum requirement. With LRP, you can tailor your risk management strategy to suit your operation, ensuring protection against falling prices while preserving the potential for market gains.
What LRP Insurance brings to your operation.
Peace of mind before going to market
Market prices are one of the biggest stressors for any farm or ranching operation. With Livestock Risk Protection (LRP), you can secure profits months before your cattle are ready for market. This coverage lets you focus on running your operation year-round without constant worry about market fluctuations.
Scaling to fit your operation
Unlike futures hedges or put options, Livestock Risk Protection (LRP) has no minimum head requirements and offers generous maximum allotments per crop year. Whether you run a small family ranch or manage thousands of head, LRP can be tailored to the needs of your operation.
Maximum Allotments:
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Feeder Cattle: Up to 12,000 head per endorsement and 25,000 head per crop year
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Fed Cattle: Up to 12,000 head per endorsement and 25,000 head per crop year
Flexible and affordable coverage to fit your needs
Livestock Risk Protection (LRP) offers coverage levels ranging from 70% to 100% of the expected ending value of your animals. With USDA subsidies covering up to 55% of premiums, LRP provides flexible and affordable options tailored to your operation's needs.
Year-round availability
Once an application has been filed, a Specific Coverage Endorsement (SCE) can be wrote anytime throughout the year. Endorsements range from 13 weeks to 52 weeks.
Daily USDA market updates
LRP quotes are updated daily after the cattle markets close and are typically released around 4:30 PM CT. This provides the flexibility to choose the most favorable market conditions for securing coverage. All coverage must be enacted while markets are closed, between 4:30 PM and 8:25 AM the following day.
