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Livestock Risk Protection (LRP) Insurance is designed to insure against a drop in cattle/swine market prices. Producers have the option to choose a coverage level and policy period that will most accurately fit the herd they hope to insure.
Our agency suggests that the producer is familiar and knowledgeable of the market patterns before selecting an LRP policy. In order to insure livestock, the producer must have either whole or partial ownership of the insured. LRP can be purchased for fed cattle, feeder cattle, and swine.
LRP policies can be purchased anytime throughout the year. If the ending value is below the coverage price at the end of the policy period, the producer will be paid an indemnity for the difference between the coverage period and the actual ending value.
It is important to note that LRP coverage is not impacted by how the producer's cattle/swine perform on their sale date. The coverage only is affected by a drop in the nationwide livestock market.
The Risk Management Agency (RMA) is an excellent source for information regarding Livestock Risk Protection Insurance. Check out their website by clicking the button below.