Livestock Risk Protection

Livestock Risk Protection (LRP) is a policy that provides protection for lambs, swine, fed cattle, and feeder cattle against declining livestock prices and provides a payment if the ending daily cash price of your livestock falls below your coverage price.  Benefits of LRP include:

  • Your final selling price does not impact your payment as it is not based on your actual gain or loss, so you could earn a loss payment even if your livestock remained profitable and vice-versa.

  • Any number of head could be insured up to a certain limit

*Producers need to hit their target hundredweight (cwt) in their policy to receive the exact insured amount.

 

Detailed information below:

TOPIC
SWINE
FED CATTLE
FEEDER CATTLE
LAMB
Actual Ending Value
Agricultural Marketing Service (AMS) Neogtiated and Swine or Pork Market Formula Categories
Agricultural Marketing Service (AMS) 5 Area Weekly Weighted Avg. Direct Slaughter Cattle - Live Basis Sales, Steers, "35-65% Choice"
Chicago Mercantile Exchange (CME) Feeder Cattle Reported Index multiplied by the Price Adjustment Factor (by type and weight)
Agricultural Marketing Service (AMS) in the "National Weekly Slaughter Sheep Review"
COVERAGE LEVEL
70-100%
70-100%
70-100%
80-95%, in 5% increments
INSURANCE PERIOD
13, 17, 21, or 26 weeks
13, 17, 21, 26, 30, 34, 39, 43, 47, or 52 weeks
13, 17, 21, 26, 30, 34, 39, 43, 47, or 52 weeks
13, 20, 26, or 39 weeks
MAX. HEAD INSURABLE
10,000 per specific endorsement, 32,000 per crop year
2,000 per specific endorsement, 4,000 per crop year
1,000 per specific endorsement, 2,000 per crop year
2,000 per specific endorsement, 28,000 per crop year
INSURABLE LIVESTOCK
Swine that producers expect to have and to market within a range of 1.5 to 2.25 lean cwt target weight (203-304 live cwt)
Steers and heifers that producers expect yo be graded select or higher, yield grade of 1 to 3 and to market at 10 to 14 live cwt
Steers: (<6 cwt and bulls, 6-9 cwt for steers only), Heifers (<6 cwt and 6-9 cwt), Dairy Cattle (<6 cwt for heifers, steers, and bulls and 6-9 cwt for heifers and steers)
Lambs that producers expect to market within a range of 0.5-1.5 cwt target weight at the end of the insurance period
MARKET
Marketed for slaughter
Marketed for slaughter
Ready to put in feed lot for fattening
Marketed for slaughter