Livestock Risk Protection (LRP) Insurance

LRP is an insurance program that protects livestock producers against a decline in market prices. If market prices fall below your selected coverage price at the end of the coverage period, an indemnity may be paid.

LRP is a federal crop insurance product overseen by the USDA through the Risk Management Agency and sold by private, approved insurance agents.

LRP covers price risk only. It does not cover death loss, disease, theft, poor weight gain, feed costs, or physical damage.

LRP coverage is available for:

• Feeder cattle
• Fed cattle, including eligible cull dairy cows
• Swine
• Unborn calves, including beef and beef-on-dairy crossbred calves, when ownership interest in pregnant cows can be documented

Coverage is available in all counties nationwide.

You can insure as few as one head.
Maximum limits are:

• Cattle: up to 12,000 head per endorsement and 25,000 head per crop year
• Swine: up to 70,000 head per endorsement and 750,000 head per crop year

Coverage prices are posted daily. Sales typically occur between 3:30 PM Central time and the following morning, with the sales period ending at 8:25 AM Central Time. Sales are not available on USDA report days, CME holidays, or during futures limit moves.

Coverage prices are posted daily. Sales typically occur between 3:30 PM Central time and the following morning, with the sales period ending at 8:25 AM Central Time. Sales are not available on USDA report days, CME holidays, or during futures limit moves.

Coverage begins on the effective date shown on the Specific Coverage Endorsement, which is the date prices are published by RMA.

No. Livestock do not have to be sold on the exact end date. However, livestock sold more than 60 days before the end date are not eligible for an indemnity.

Yes. Livestock may be insured under a valid livestock purchase agreement, provided the agreement is entered before coverage begins and delivery occurs at least 90 days before the end date.

Yes. Certain unborn cattle types, including beef and beef-on-dairy calves, are eligible if the producer has an ownership interest in the pregnant cows and can document that ownership. Dairy-on-dairy calves are not eligible.

Coverage prices are based on CME Feeder Cattle futures and adjusted for livestock type and weight. Coverage levels generally range from 75% to 100%.

The LRP SCE is settled by the CME Feeder Cattle Index.

A producer receives an indemnity if:

• The actual ending value for the covered livestock type and end date is lower than the coverage price selected on the Specific Coverage Endorsement (SCE), and
• The producer maintained a valid ownership interest through the required timeframe, and
• The producer provides the required documentation verifying sale or ownership and marketability of the livestock.

A producer pays the premium when:

• Market prices finish above the selected coverage price (no indemnity is due), or
• Coverage attached but an indemnity is not payable due to timing of sale, ownership issues, or failure to provide required records.

Premiums vary based on head count, target weight, coverage level, and coverage length. A federal subsidy typically covers 35% to 55% of the premium.

Premiums are not paid upfront. They are billed after the coverage period ends, often near the time livestock are marketed.

Indemnities are calculated using a national market index, not local sale prices:
(Number of head × target weight) × (coverage price − actual ending value) × insured share

If market prices finish above your coverage price, no indemnity is paid. You still benefit from higher cash market prices and only pay the premium.

Records may include bills of sale, proof of ownership, certified statements for retained livestock, and additional documentation for unborn calves. If required records are not provided, no indemnity is paid.

For feeder cattle only, drought conditions may allow flexibility on minimum weight requirements if county drought conditions worsen significantly during coverage. This does not apply to fed cattle or swine.

LRP allows precise head counts, does not require brokerage accounts or margin calls, and premiums are subsidized and billed later. LRP is insurance, not a trading product.

Subsidy capture is using futures, options, or private contracts to offset LRP coverage for guaranteed profit. This is prohibited and can result in denied claims, policy termination, and penalties.

Work with an approved agent to complete a one-time application. Once approved, you can purchase coverage endorsements throughout the year.