Livestock Insurance
Livestock Risk Protection (LRP) – Cattle Coverage
LRP Cattle insurance is designed to insure against declining national market prices. A variety of coverage levels and insurance periods are offered that match the time cattle would normally be marketed.
- Choose coverage prices ranging from 75% to 100% of the expected ending value.
- At the end of the insurance period, if the actual ending value is below the coverage price, an indemnity may be paid for the difference.
Availability
Submit a one-time application for LRP Cattle
coverage. After the application is accepted,
producers can insure up to 12,000 head per SCE
with a limit of 25,000 per crop year.
Coverage is available in all states and in all counties
Subsidy levels range from 35%–55% based on coverage level selected
AgriSompo is an Equal Opportunity Provider
LRP insures cattle that are placed in two categories:
Feeder Cattle
- Unborn types
- Weight range of 1,000 pounds or less
Fed Cattle
- Weight range of 1,000 - 1,600 pounds
- Unborn types
Buying a Policy
Livestock Risk Protection must be purchased through a livestock insurance agent. Applications can be filled out at any time; however, insurance does not attach until a Specific Coverage Endorsement (SCE) is purchased.
- Premium is billed on the first day of the month following the end date for the SCE.
- Multiple SCEs can be purchased with one application.
- Insurance begins the day a SCE is purchased and has been approved by the Risk Management Agency (RMA).
If you have perennial forage – pasture or rangeland – or any perennial hayfields, you’re eligible for this coverage.
When you come in for a consultation, we’ll plug in a number of variables to generate multiple policy options and scenarios that maximize your benefits.
Here are a few things we’ll look at:
• Your area’s PRF payout history
• How many of your acres you want to insure
• Choose a coverage level between 70% - 90%
• Select your index intervals (these are 2 month periods)
The PRF insurance program pays you an indemnity when the actual rainfall in any selected two month period is less than 90% of normal.
For example, if you receive 70% of the expected rainfall for your area, you’ll receive an indemnity payment on the difference – 20% in this case.
If you’re ready to protect yourself against unforeseen natural events like lack of precipitation, schedule a consultation with us.
Come away with multiple policy options to consider and no obligation to sign up on the spot.
We’ll need you to bring the address for your pasture or rangeland. Then, we’ll sit down and plug numbers into our policy generator to produce a number of options for us to look at.
We’ll look at historical payout data for your area. We’ll also look at variables that we can adjust to make the policy best fit your operation. There are a number of options to consider and we’ll walk you through them every step of the way.
At the end of your consultation, there is no obligation to make a decision on the spot. We encourage you to take our printouts home and discuss with your spouse and any other key decision makers.
Then, when you’re ready, let us know and we’ll complete the paperwork to get you set up for coverage (and peace of mind) in 2021.
This is where Midplains Ag excels. We’ll help you walk through your situation and the policy options to see if this coverage makes sense for your operation.
Average cost to the producer is $3/acre; it can range from $0.80 - $10 depending on level of coverage and what intervals are selected. With the ability to adjust several options, we’re confident we can create a policy that both fits your budget and manages your risk.
