Protect your business from instability in the livestock market with Livestock Risk Protection
PROTECTION AGAINST PRICE DECLINES
What is Livestock Risk Protection (LRP)
This single-peril policy protects against a decline in livestock price by setting a price floor. When the CME final index drops below the coverage selected, an indemnity is owed.
Features of LRP
- Insure 1 to 12,000 head of livestock
- Coverage can not be canceled after purchase
- The policy cost is fixed at purchase time
- The premium is due after coverage ends
- Coverage prices range from 70 to 100 % of expected ending value
- Endorsement lengths vary from 13 to 52 weeks
- Premiums are tax-deductible
Animals Able to Be Covered
- Feeder cattle
- Fed cattle
- Unborn calves
- Swine
How It Works
To determine your eligibility, an application must be filled out. Approval by Risk Management Agency (RMA) is required. You choose coverage level, price floor, and policy length from that day’s offerings. Policies are available after markets close each day and before the markets reopen the following day.
60-Day Rule
If you sell the livestock covered by a policy within 60 days prior to the contract end date, the policy is voided.