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
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 |
|---|---|
| Prices | Fed, Feeder and Swine: 13% |
| Fed, Feeder and Swine: Between 70% and 100% of the expected ending value | Lamb: Varies by endorsement length |
| Lamb: Between 80% and 95% of the expected ending value | 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.
