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Tag: LRP

Livestock Risk Protection – What is price insurance worth?

Posted on by Sandy Johnson

By Jennifer Ifft, agricultural policy extension specialist and Sandy Johnson, Extension Beef Specialist, Colby

Livestock Risk Protection (LRP) is price insurance that pays out when market prices for feeder cattle (or fed cattle) are lower than expected. For example, if a producer calves in March and sells weaned calves around September, they can purchase LRP in March and “lock in” September futures prices. If by September, actual prices are lower than expected, they may receive a payment, or indemnity.   Continue reading “Livestock Risk Protection – What is price insurance worth?” →

Updates for Livestock Risk Protection, a price insurance tool for feeder cattle

Posted on by Sandy Johnson

by Monte Vandeveer, extension agricultural economist, Garden City

One price risk management tool available to feeder cattle producers (and other types of livestock producers) is Livestock Risk Protection, or LRP.  The LRP program from USDA’s Risk Management Agency (RMA) is a price insurance program where insurance policies are sold through local insurance agencies but still backed up by RMA, just like traditional crop insurance.  Also like multi-peril crop insurance, LRP premiums receive a subsidy through RMA. Continue reading “Updates for Livestock Risk Protection, a price insurance tool for feeder cattle” →