Beef-on-Dairy Unborn Calf (UBC) LRP Coverage

Livestock Risk Protection (LRP) for Beef-on-Dairy (BOD) Unborn Calves is a powerful tool that helps dairy producers lock in future calf prices before the calf is born, protecting against unexpected price drops in the feeder cattle market.

What It Covers:

UBC LRP provides price protection on beef-sired calves born from dairy cows — often referred to as beef-on-dairy calves. These calves are typically sold at just a few days old and have become a key revenue stream on many dairies.

How Pricing Works:

The USDA uses real-time market data to establish a Price Adjustment Factor (PAF) each month, which reflects the relative value of newborn BOD calves compared to standard feeder cattle prices. The PAF adjusts monthly based on:

  • Actual calf sale prices in New York and Pennsylvania auctions

  • The national CME Feeder Cattle Index

  • Seasonal price patterns

This dynamic PAF ensures the coverage price accurately reflects current market conditions and calf values.

When You Lock In Coverage:

  • The PAF is set at the end of each month

  • It applies to endorsements purchased in the following month

  • Coverage periods range from 13 to 52 weeks, aligning with expected calving windows

How It Pays:

If the national feeder cattle market drops below your insured price (adjusted by the PAF), you receive an indemnity payment to help offset lost revenue.

Why It Matters:

With calf values reaching record highs in recent years, UBC LRP gives you a way to protect that value upfront — even before the calf hits the ground. It's a key risk management tool for modern dairies leveraging beef genetics.