The USDA's Risk Management Agency’s (RMA) Livestock Risk Protection (LRP) Pilot Insurance Program is designed to protect against price declines for livestock producers. The program covers four types of livestock: fed cattle, feeder cattle, marketable dairy cattle, and swine. Each type of livestock has different eligibility criteria, coverage options, and premium rates.
The LRP program is a valuable tool for livestock producers to protect their income from price fluctuations and market uncertainties.
How this program works
To participate in the LRP program, a producer must first submit a one-time application and then buy specific coverage endorsements (SCEs) that match their expected marketing date and desired coverage price. The coverage price is the price level that the producer wants to insure, and it can range from 70 to 100 percent of the expected ending value, which is the projected cash price at the end of the insurance period. The insurance period is the length of time that the policy covers, and it can vary from 13 to 52 weeks depending on the type of livestock. The premium rate is the cost of buying the insurance policy, and it is determined by the coverage level, insurance period, and market conditions. The premium rate is subsidized by the USDA RMA, which pays 30-55 percent of the premium cost.
Availability
LRP is available in all 50 states.
LRP Cattle and Swine Insurance is designed to insure against declining national market prices. A variety of coverage levels and endorsement periods are offered that match the time cattle or swine would normally be marketed.
Endorsement Lengths Offered
13, 17, 21, 26, 30, 34, 39, 43, 47, 52 weeks
*Endorsement(s) can change daily.
Cattlemen have a short window from the close of trading to 8:25 am CST to get coverage booked. At 8:25 am CST USDA locks the system until the next offerings are available. Friday offers end Saturday morning at 8:25 am CST.
Our promise
We will conduct a one-on-one personal consultation to go over your specific ranch or farming operation needs.
We will offer opportunities to help you maximize your benefits.
We will help keep you informed about the market.
Why now?
- Allows coverage for Small, Mid, and Large Livestock operations.
- No minimum head requirements exist.
- Subsidized premiums based on producers chosen coverage limit(s) or budget.
- Guaranteed price – Premium is set at the beginning of endorsement period.
- Premium is not due until the end of the endorsement period.
LRP Insurance Explained
Livestock Risk Protection insurance is an insurance program offered by the United States Department of Agriculture Risk Management Agency (USDA RMA) to producers of fed cattle, feeder cattle, marketable dairy cattle, and swine. The purpose of this program is to insure against declining market prices caused by various factors, such as supply and demand shocks, weather events, disease outbreaks, or trade disruptions. Livestock producers face many challenges and uncertainties in their business, as they have to deal with volatile and unpredictable markets, high production costs, and low profit margins. Therefore, risk management strategies are essential for them to protect their income and ensure their financial stability. The livestock risk protection program is a valuable tool for livestock producers to protect their income from price fluctuations and market uncertainties.
Useful Links
- LRP Estimate Calculator
- LRP Information
- 2024 LRP Policy
- 2024 LRP Handbook
- Specific Coverage Endorsements
- Fact Sheets
Addresses
Boca Raton Office Address:
21845 Powerline Road Suite 205
Boca Raton, FL 33433
Navajo Office Address:
SW Corner of Navajo Rt 12 & Walnut Ave.
Navajo, NM 87328
Scottsdale Office Address:
9237 E Via de Ventura Suite 120
Scottsdale, AZ 85258
Fax
855-327-4839