Livestock Risk Protection is a federally-reinsured livestock product that provides single peril risk protection against the decline in prices over the insurance period.

This insurance may be purchased throughout the year. Premium rates, coverage prices, and actual ending values are posted online daily. The RMA monitors capacity levels, and when the funding limit has been reached, sales for this product will cease. LRP does not insure against death, loss or poor performance.

At the end of the insurance period, if the actual ending value is below the coverage price, an indemnity will be paid for the difference.

Recent Updates

Swine: Modified the policy and created new swine types to allow for livestock to be insured before birth.

All LRP Products:

  • Increased head limits.
  • Increased subsidy rates (see below).
  • Modified the livestock ownership requirement to 60 days.
  • Modified the policy and created new feeder cattle types to allow for livestock to be insured before birth.
  • Premium may be paid at the end of the endorsement period (billing dates per the actuarials).

Fed Cattle

LRP – Fed Cattle provides single peril risk protection against the decline in fed cattle price over the insurance period. Producers may select from a variety of coverage levels and insurance periods to match the time the fed cattle would normally be marketed

Feeder Cattle

LRP-Feeder Cattle provides protection when the national cash price index, as reported by the Chicago Mercantile Exchange (CME), falls below the insured’s price coverage level. Producers may select from a variety of coverage levels and insurance periods to match the time the feeder cattle would normally be marketed.

Swine

LRP-Swine provides protection against the decline in hog prices, as published by the Agricultural Marketing Service (AMS), over the selected insurance period. Producers may select from a variety of coverage levels and insurance periods to match the time the hogs would normally be marketed.

Lamb

LRP-Lamb provides protection against the decline in lamb prices, as published by the Agricultural Marketing Service (AMS), over the selected insurance period. Producers may select from a variety of coverage levels and insurance periods to match the time the lamb would normally be marketed.

Premium rates, coverage prices, and actual ending values are posted online on Monday of each week, instead of on a daily basis.

Premium Subsidy

COVERAGE
PREMIUM SUBSIDY
Fed, Feeder and Swine: Between 70% and 100% of the expected ending value Fed, Feeder and Swine:

35% for 95 – 100% Covg. Level

40% for 90 – 94.99% Covg. Level

45% for 85 – 89.99% Covg. Level

50% for 80 – 84.99% Covg. Level

55% for 70 – 79.99% Covg. Level

 

 

 

Lamb: Between 80% and 95% of the expected ending value

Lamb: Varies by endorsement length

13 Weeks – 20%

26 Weeks – 35%

39 weeks – 38%

 

 

 

The information contained in this publication is for general purposes only and shall not modify the terms of any insurance policy.

January 2022

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Announcement of Class & Component Prices
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2022 January

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