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
999 pounds or less
- Unborn Steers 100 - 600lbs
- Steers Weight 1 • 100 - 599lbs
- Heifers Weight 1 • 100 - 599lbs
- Heifers Weight 2 • 600-1000lbs
Fed Cattle
- Weight range of 1,000 - 1,600 pounds
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).
Once an application is in place either before calves or born or upon receipt you can select the marketing window that you plan to sell your cattle. Each day after the board of trade closes the RMA releases the coverage levels available for the marketing windows. If you see a price and a rate that covers your breakeven you put in an SCE for that date. For Feeder cattle if the board is trading below your coverage level selected when you get to that close date there will be an indemnity that will go toward premium first then a payout to insured. For Fed cattle there is a Marketed cattle report put out weekly by RMA counter part USDA’s Agricultural Marketing Service this report determines the actual ending values are based on weighted prices actually paid for fed cattle.
