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Livestock Risk Protection Overview

Livestock Risk Protection (LRP) is a federally subsidized risk-management program designed to insure against a decline in livestock market prices. Producers may choose from a variety of coverage levels and insurance periods that help protect against national marketplace volatility. Insurable livestock include Fed Cattle, Feeder Cattle and Swine. LRP uses area pricing to determine indemnities and is offered on a per head basis.

Key Policy Benefits

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  • Large premium subsidies, making coverage more affordable

  • Premium payments are due at the end of the insurance period

  • Uses area pricing to determine if an indemnity is due (the producer’s price is never used)

  • Allows for the coverage on a wide variety of livestock, including unborn cattle and swine

  • The ability to market livestock up to 60 days prior to the end of the insurance period

General Information

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  • Protects against a drop in market price (producer’s marketed price doesn’t affect indemnity) this is NOT a death loss policy

  • Must have full or partial ownership of the livestock to be insured

  • Must list the state and county where the livestock are located

  • Once insured within a state, the livestock may be moved across state lines

  • Not required to insure all livestock

  • Livestock must be intended for market/slaughter

  • Producers must have Form AD 1026 on file with the FSA to qualify for the subsidy

HOW LIVESTOCK RISK PROTECTION WORKS

Livestock Risk Protection (LRP) is an insurance program offered to producers of fed cattle, feeder cattle, marketable dairy cattle and hogs.

If, on the end date of the policy, the regional/national cash price average (not the producer’s cash price) is below the insured coverage price, the LRP insurance pays an indemnity to make up the difference.

A user of LRP first selects an end date for the insurance policy that is close to the expected marketing date for the livestock and then selects a coverage price level to insure.

AgencyRoot's Livestock Pro Quoter 

Would you like to see what today's market prices are for your cattle in real time? 

 

If you already have an Agency Root Account, log into your account and just click on the "Livestock Pro Quoter" link. Click on "New Quote" and then on "Livestock Pro-LRP" this will open the Livestock Quoting page. Enter the specifics regarding your cattle and see the current market prices.

 

Don't already have an account? Please give us a call and we can assist in setting one up. With an Agency Root Account account you can have access to LRP quotes in real time.

 

If you have any question, we are available to assist.

How to get LRP coverage?

​When you are ready for coverage to take effect, you will need to:

  1. Contact your agent. 

  2. Submit an LRP application.

Determine the number of animals you wish to cover that will be ready for market at a particular weight.


Choose the insurance period appropriate for reaching the target weight.


Select a coverage price for the duration of the policy.


Contact your agent that day in order to bind the desired coverage. The rates are only good for that day.

WANT TO TALK?

Contact us if you have questions or need more information. Fill out the form or give us a call at

(325) 773 - 7400.

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Ag Crop serves farmers, ranchers, agribusinesses and rural residents in Texas, New Mexico and Oklahoma.

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