LIVESTOCK RISK
PROTECTION (LRP)

Insures against decreases in livestock selling prices while enabling producers to benefit from an increase in market prices.

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Livestock Risk Protection Overview

Livestock Risk Protection (LRP) is a federally subsidized risk-management program designed to insure against a decline in livestock market prices. Producers may choose from a variety of coverage levels and insurance periods that help protect against national marketplace volatility. Insurable livestock include Fed Cattle, Feeder Cattle and Swine. LRP uses area pricing to determine indemnities and is offered on a per head basis.

Key Policy Benefits

  • Large premium subsidies, making coverage more affordable
  • Premium payments are due at the end of the insurance period
  • Uses area pricing to determine if an indemnity is due (the producer’s price is never used)
  • Allows for the coverage on a wide variety of livestock, including unborn cattle and swine
  • The ability to market livestock up to 60 days prior to the end of the insurance period

General Information

  • Protects against a drop in market price (producer’s marketed price doesn’t affect indemnity)
  • Must have full or partial ownership of the livestock to be insured
  • Must list the state and county where the livestock are located
  • Once insured within a state, the livestock may be moved across state lines
  • Not required to insure all livestock
  • Livestock must be intended for market/slaughter
  • Producers must have Form AD 1026 on file with the FSA to qualify for the subsidy

Available to all qualifying producers regardless of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status.

HOW IT WORKS

Livestock Risk Protection (LRP) is an insurance program offered to producers of fed cattle, feeder cattle, marketable dairy cattle and hogs.

A user of LRP first selects an end date for the insurance policy that is close to the expected marketing date for the livestock and then selects a coverage price level to insure.

If, on the end date of the policy, the regional/national cash price average (not the producer’s cash price) is below the insured coverage price, the LRP insurance pays an indemnity to make up the difference.

HOW DO I GET LRP COVERAGE?


  1. Contact your local office.
  2. Submit an application.

When you are ready for coverage to take effect, you will need to:

  • Determine the number of animals you wish to cover that will be ready for market at a particular weight.
  • Choose the insurance period appropriate for reaching the target weight.
  • Select a coverage price for the duration of the policy.
  • Contact your agent no later than 4:00 p.m. in order to bind the desired coverage. The rates are only good for that day.

Why Work With Us For Livestock Insurance?

Dedicated Specialists

They focus 100% of their time on crop insurance and livestock insurance — every working day of every week in the year. They don’t sell property, casualty or life insurance.

Highly Trained

Our insurance officers receive annual training on RMA changes to crop insurance and livestock insurance plans and stay informed throughout the year.

Financial Expertise

As a lender, we understand financial risk and work to protect your working capital, not just your crop or livestock.

Decision-Making Tools

Our proprietary Optimum tool analyzes federal and private insurance policies to find the best choice whatever your risk management goal.

"They do a good job of giving us information to help make our decision. They've been great with insurance."

Blake & Tasha

Grain & Beef Producers, Nebraska

Blake & Tasha

Ready to Talk?

Contact us if you have questions or need more information. Fill out the form, or connect with your local office using the Office Locator.

FCSAmerica serves farmers, ranchers, agribusinesses and rural residents in Iowa, Nebraska, South Dakota and Wyoming. For inquiries outside this geography, use the Farm Credit Association Locator  to contact your local office.