Livestock Risk Protection (LRP)
Livestock Risk Protection (LRP) is a federally subsidized insurance program that helps conventional cattle producers protect against falling market prices. You select the number of feeder cattle, their target weight, a coverage price, and the length of the coverage period (13 to 52 weeks). If the national market price is lower than your coverage price when the policy ends, you receive a payout to cover the difference.
Example:
You cover 50 head of 700 lb feeder cattle for 20 weeks at a coverage price of $215/cwt. If the market drops to $200/cwt at the end of the coverage period, you receive an indemnity of $15/cwt — or about $5,250 total — to help offset the lower market value.
LRP is simple, flexible, and helps you lock in a floor price while still allowing upside if the market improves.
