• Coverage for: Feeder Cattle, Fed Cattle, and Swine
• Up to 55% subsidized premium
• No up-front cost to apply
• Insure from 1 to 12,000 head per day
• Cost is fixed when you purchase a contract
• No margin calls, you keep all the upside
• Premium due after coverage ends
Livestock Risk Protection is a federally reinsured product that provides protection when the national cash price index falls below the insured’s coverage price. LRPs are cheaper than a put and do not require margin accounts or brokers. To purchase an LRP policy, a one time application must be completed to determine eligibility. Once the RMA accepts the application, you can then purchase a specific coverage endorsement (SCE) with your chosen livestock, coverage percent, and coverage length. A single application can be used to purchase multiple SCEs throughout the insurance year. Premiums are calculated based off of the futures and options prices posted by the Chicago Mercantile Exchange. Our certified agents use those numbers to determine a cash value for your livestock 13 weeks or more out into the future.
LRPs for feeder cattle provides coverage for unborn calves, calves, steers, heifers, predominantly Brahman or predominantly dairy cattle throughout different classes of their cycle. Class one insures livestock with ending weights under 600 pounds, while class two coverage insures livestock between 600 and 900 pounds. In either class beef producers can select a coverage level between 70% to 100% of the expected value and can insure their cattle in 4 week increments from 13 to 52 weeks. A single SCE can insure up to 6,000 head at a time, with an annual maximum of 12,000 head split between multiple SCEs. Premium rates, coverage prices, and actual ending values are posted daily on the RMA website.
LRPs for fed cattle insures heifers and steers expected to weigh 1,000 to 1,400 pounds by the end of the policy term. Beef producers can select a coverage level between 70% to 100% of the expected value and can insure their cattle in 4 week increments from 13 to 52 weeks. A single SCE can insure up to 6,000 head at a time, with an annual maximum of 12,000 head split between multiple SCEs. Premium rates, coverage prices, and actual ending values are posted daily on the RMA website.
Coverage is available for both born and unborn hogs provided they are born before the end of the coverage period. Swine producers can select a coverage level between 70% to 100% of the expected value and can insure their hogs in 4 week increments from 13 to 52 weeks. A single SCE can insure up to 40,000 hogs at a time, with an annual maximum of 150,000 hogs split between multiple SCEs. Premium rates, coverage prices, and actual ending values are posted daily on the RMA website.
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