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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:
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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.
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Any number of head could be insured up to a certain limit
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*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 |
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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 |
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