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