Livestock Insurance Program Available

Attention livestock producers: are you aware of the risk management tool that can protect you from the risk of prices dropping during the insurance period? Livestock Risk Protection or LRP program is available for fed cattle, feeder cattle and swine. USDA Risk Management Agency Risk Management Specialist Jo Lynne Seufer shares more details
Seufer: “One of the major differences between maybe a crop that is insured and a livestock producer is when you insure a crop, it’s based a lot on yield for several crops and when that crop is damaged then we pay the difference from the guaranteed yield that they insured on then to what the loss is. Same thing a little bit of price, they have a guaranteed price that they may insure on a specific coverage level and then when the coverage prices doesn’t meet that then we will pay out that loss. So for livestock producers this is a new program — a relatively new program because it has been around from 2008. There have been some years where participation has been really strong. But currently and in the last year or two when the prices have held steady then the demand for this risk protection tool has not been in demand.”
Unlike most of the crop insurance programs there is no deadline.
Seufer: “Now this program is available every day — that the markets - the Chicago Mercantile Exchange is open. So not on weekends or holidays. But this does not have a sales closing date like several of our crop insurance policies. Again it is available to producers every day that the Chicago Mercantile Exchange is open.”