Protecting Profit with Livestock Risk Protection

In today's volatile cattle market environment, higher prices may be justified, but both domestic and international variables can influence the market daily. Cattlemen are constantly facing uncertainty. Producer Ag offers tools to bring peace of mind to cattle operations by establishing a floor price, reducing market stress, and protecting income. 
 

Understanding Livestock Risk Protection (LRP) 

Livestock Risk Protection (LRP) sets a floor price for livestock. If the market price falls below the selected coverage price, the insured will receive an indemnity payment.
 

Key features of LRP include: 

• Coverage periods range from 13 weeks to 52 weeks, in approximately four-week intervals. 
• Offered on a per-head basis, not tied to a specific contract size. 
• Variety of coverage levels and insurance periods available. 
• Subsidies range from 35% to 55%, depending on the coverage level. 
• Payments are due at the maturity of policy coverage, with no upfront costs. 

For those already using LRP or new to the product, contacting a Producer Ag Risk Management Specialist is recommended for the most up-to-date information and to address any operational questions. 

Article provided by Steve Floyd, Crop Insurance Manager