What is LRP Coverage?
Livestock Risk Protection (LRP) is a simple, effective insurance tool designed to protect cattle producers against a sudden drop in market prices. Unlike traditional hedging, there are no margin calls or brokerage accounts required, making it an accessible option for operations of all sizes.
Whether you are running a cow-calf operation, managing a feedlot, or handling backgrounding cattle, LRP provides a price floor for your livestock. It allows you to lock in a minimum price while still giving you the flexibility to benefit if the market moves higher, ensuring your operational stability remains intact.
The Strategic Advantages of LRP Coverage
Market Price Lockdown
Flexible Coverage Levels
No Minimum Head Count
Federal Peace of Mind
Lock in a set floor price for your cattle, ensuring your operation remains profitable even when market volatility strikes.
Choose coverage from 75% to 100% of the expected value to match your specific risk tolerance and operational budget.
Protecting your future doesn't require a massive herd; coverage is available for as few as one head of cattle.
Walk away from market stressors knowing your legacy and hard work are safeguarded by robust federal backing.
How LRP Coverage Works
01
Select Your Coverage
Tailor your protection by choosing a coverage level and ending date that fits your specific cattle operation. You protect your livestock against seasonal price drops while keeping full ownership.
02
Pay Your Premium
Federal subsidies help keep LRP premiums affordable. Payment is generally due at the end of the insurance period, providing a cash-flow friendly safety net for producers.
03
Monitor Markets
The Risk Management Agency monitors regional price indices. Coverage is based on market data rather than individual sales, so no physical inspection of your herd is required.
04
Receive Settlement
If the actual ending price is below your protected price at the end of the period, you receive an indemnity. It’s a straightforward safety net for your family’s farm legacy.
Frequently Asked Questions
When can I purchase LRP coverage?
You can purchase coverage any day the USDA Risk Management Agency (RMA) publishes prices, typically daily after the markets close. Applications are accepted until the following morning or until the next price release.
When are my premiums due?
LRP premiums are conveniently billed the first of the second month after your end date.
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Example: End date March 22nd / Receive bill May 1st / Bill due May 31st.
What happens if market prices increase?
If the actual ending price is higher than your coverage level, you benefit by selling your livestock at the higher market rate. While no indemnity is paid, you retain the full upside of the market movement.
How are indemnity payments processed?
If the ending index price falls below your chosen coverage price, an indemnity is triggered. Payments are processed quickly, typically within 30 days after you submit the claim form following the end of the insurance period.
Does LRP require a minimum head count?
One of the greatest benefits of LRP is its accessibility. There are no minimum head requirements, making it an ideal tool for both small family farms and large-scale commercial operations.