Because cattle prices don’t always cooperate
Livestock Risk Protection (LRP) Insurance
What Is LRP Insurance?
Livestock Risk Protection (LRP) insurance is a USDA-backed insurance program that helps cattle producers protect their income when market prices fall. Instead of protecting the animals themselves, LRP guarantees a minimum price level for your livestock so that you can lock in downside protection but still benefit if prices go up.
How LRP Insurance Works
LRP insurance insures the livestock market prices, not the livestock itself. If market prices drop below your insured floor price at the end of your endorsement period, LRP insurance will help protect your investment by issuing an indemnity on the price difference!
- LRP coverage is available for fed and feeder cattle
- LRP protects market prices, not the livestock itself
- You select a price floor to protect during the coverage period
- If market prices fall below your selected level, LRP may pay the difference
- Endorsement lengths range from 13 to 52 weeks
- Coverage can be matched to your expected marketing timeline
- Livestock can be marketed within 60 days after coverage ends
- At the end of the endorsement period, feeder cattle are not required to be sold, while fed cattle must be sold.
- No minimum number of head is required
- Premium payments are due within 30 days after coverage ends and are tax-deductible expense
LRP FAQS
What Types of Cattle Prices Does LRP Insurance Cover?
Livestock Risk Protection (LRP) insurance through Farm Shield can be used to protect market prices for fed cattle and feeder cattle, including calves that have not yet been placed on feed. Coverage is based on market price movement, not on the individual animals themselves.
What Price Is LRP Insurance Based On?
LRP coverage prices are determined using national livestock market data published by the USDA’s Agricultural Marketing Service (AMS). These market prices are updated frequently, allowing coverage levels to reflect current market conditions.
When Are LRP Insurance Premiums Due?
LRP premiums are not paid upfront. Premiums are billed 30 days after the endorsement period ends and may be offset by any indemnity payments received. Premium costs may also be tax-deductible, depending on your operation.
Is Livestock Risk Protection Worth It?
For producers concerned about market volatility, LRP can be a valuable risk-management tool. It helps establish a price floor while still allowing you to benefit if cattle prices rise. Many producers use LRP to protect income they’ve worked hard to build—without locking themselves out of higher market opportunities.
How Much Does LRP Insurance Cost?
The cost of LRP insurance varies based on factors like livestock type, coverage length, and selected price level. LRP policies are partially subsidized by the USDA, which helps reduce out-of-pocket costs. If market prices fall and indemnity payments exceed the premium, any remaining funds are paid directly to you.
Is Livestock Insurance Worth Considering?
Livestock insurance, including LRP, can help producers stay in control during unpredictable markets. It’s a practical way to manage downside price risk while keeping flexibility in your marketing plan when conditions improve.
1
Talk with Your Agent
Meet with a Farm Shield agent to review coverage prices, head counts, and timing that fit your operation.
2
Talk with Your Agent
There’s no pressure or commitment, nothing is finalized until you choose to secure a coverage price.
3
Track LRP Rates Together
Your Farm Shield agent will help you watch rate changes and choose the right time to lock in coverage.
4
Sign An Endorsement
When the timing is right, we’ll act quickly to secure your coverage price and finalize the endorsement.
5
Review Additional LRP Options
When coverage ends, we’ll walk through your results together and discuss options for your next group.
