Livestock Insurance

Livestock Risk Protection (LRP) is designed to provide protection on fed cattle, feeder cattle, swine, and lamb against a price decline during the policy coverage period.​ 

All insured cattle must be located in a state approved for LRP Cattle at the time you buy an insurance policy, and you may purchase specic coverage endorsements throughout the year for both Feeder and Fed Cattle.

Coverage is determined by multiplying the number of livestock to be marketed times the market weight times the coverage price times the insured share. Coverage prices range from 70 to 100 percent of the expected ending value.

Livestock Risk Protection is similar to a put option in that it allows producers to establish a poor price for protection while leaving upside price potential open. Unlike market contracts and options, LRP does not require a margin account or broker, it is closer to the actual ending value of the livestock, and is based on cash market index prices rather than the futures market. The federally-sponsored program typically costs less than other options, is often perceived more favorably by lenders, and may provide additional benefits in terms of lending rates or loan availability.