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.
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
New for RY2020
- Coverage now available to all remaining states.
- Producers can insure up to 3,000 head per SCE with a limit of 6,000 head per crop year.
- Trading Requirements: Updated the trade requirements on when offers can be made. Previously, LRP endorsements could only be offered if there was a daily volume of five traded contracts.
- The subsidy increased from 13% for all coverage levels to a range of 20% to 35% based on the coverage level selected (see right).
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.
New for RY2020
- Coverage now available to all remaining states.
- Producers can insure up to 3,000 head per SCE with a limit of 6,000 head per crop year.
- Trading Requirements: Updated the trade requirements on when offers can be made. Previously, LRP endorsements could only be offered if there was a daily volume of five traded contracts.
- The subsidy increased from 13% for all coverage levels to a range of 20% to 35% based on the coverage level selected (see right).
- Price Adjustment Factor for Predominately Dairy was modified to 50% for both weight ranges.
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.
New for RY2020
- Coverage now available to all remaining states.
- Producers can insure up to 20,000 head per SCE with a limit of 75,000 head per crop year.
- Trading Requirements: Updated the trade requirements on when offers can be made. Previously, LRP endorsements could only be offered if there was a daily volume of five traded contracts.
- The subsidy increased from 13% for all coverage levels to a range of 20% to 35% based on the coverage level selected (see right).
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 |
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| Fed, Feeder and Swine: Between 70% and 100% of the expected ending value | Fed, Feeder and Swine: 20% for 95 – 100% Covg. Level |
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| Lamb: Between 80% and 95% of the expected ending value | Lamb: Varies by endorsement length 13 Weeks – 20% 26 Weeks – 35% 39 weeks – 38% |
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The information contained in this publication is for general purposes only and shall not modify the terms of any insurance policy.
