Livestock Risk Protection

Producers invest a lot into their herd. Livestock Risk Protection (LRP) allows them to protect that investment. With coverage available for a variety breeds and weight classes, LRP provides producers with flexible protection against price declines for calves, steers, heifers and more.

What are Prices Based On?

The expected cattle prices used to determine coverage prices for LRP are based on the daily settlement of CME futures (Live Cattle and Feeder Cattle). Fed Cattle coverage settles to the USDA-reported cash price. Settlement prices for Feeder Cattle are determined by the CME national cash price index.

What Types of Cattle Can Be Insured?

Fed Cattle

Cattle weighing between 1,000 and 1,600 pounds

Feeder Cattle
(less than 600 pounds)

  • Steers
  • Bulls
  • Heifers
  • Predominately Brahman
  • Predominately Dairy
  • Unborn Steers and Heifers
  • Unborn Dairy
  • Unborn Brahman

Fed CaFeeder Cattle
(more than 600 pounds)

  • Steers
  • Heifers
  • Predominately Brahman
  • Predominately Dairy

The 5 LRPCoverage Decisions

1. Cattle Type

Fed or Feeder Cattle. Various breeds and weights available for Feeder Cattle

2. Head Count

Number of cattle you would like covered.

3. Targeted Marketing Weight

The weight at which you intend to sell the cattle.

4. Coverage Length

The time frame which you in intend to sell the cattle.

5. Coverage Level

Percent of the expected value of the cattle you would like covered.

How Are Losses Calculated?

Covered Price

Expected Cattle Price x Coverage Level = Covered Price

Actual Price

Fed Cattle: USDA-Reported Cash Price = Actual Price
Feeder Cattle: CME National Cash Price Index x Adjustments for Breed = Actual Price

Loss Determination

Covered Price > Actual Price = Loss
Covered Price < Actual Price = No Loss

Loss Amount

Covered Price – Actual Price = Loss Amount

Explore a LRP Policy.

Let’s talk through our protection options.

Schedule a free producer consultation to determine the best strategy for your dairy.