LIVESTOCK RISK
PROTECTION (LRP)

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

Play Video

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 Livestock Risk Protection 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.

Livestock Insurance Analyzer

The Livestock Insurance Analyzer is FCSAmerica's proprietary tool that provides daily premium rates and coverage prices to help you make informed LRP purchases. It also provides historical performance, endorsement tracking, custom price reports, and more to help you see the full picture before making decisions.

RMA coverage prices are updated daily by 4:30 p.m. on the Livestock Insurance Analyzer. Easily accessing these daily LRP quotes is just one benefit of the tool. The Livestock Insurance Analyzer helps you calculate the numbers that really matter to your business.

Expected Price ($/cwt) Coverage Percentage Coverage Price ($/cwt) Producer Premium ($/cwt) Net Guarantee ($/cwt)
$185.80 99.97% $185.75 $5.53 $180.22
$185.80 98.90% $183.75 $4.85 $178.90
$185.80 97.82% $181.75 $4.26 $177.49
$185.80 96.74% $179.75 $3.71 $176.04
$185.80 95.67% $177.75 $3.23 $174.52
$185.80 94.59% $175.75 $2.58 $173.17
$185.80 93.52% $173.75 $2.22 $171.53
$185.80 92.44% $171.75 $1.90 $169.85
$185.80 91.36% $169.75 $1.63 $168.12
$185.80 90.29% $167.75 $1.39 $166.36

This example from our Livestock Insurance Analyzer represents LRP coverage options for Feeder Cattle for a 26-week period. The Coverage Price is the producers’ market coverage, Producer Premium is their cost for that coverage, and Net Guarantee is showing their bottom line after applying coverage.

How do I access the Livestock Insurance Analyzer tool?

We offer livestock insurance customers access to the Livestock Insurance Analyzer tool to help navigate the variables specific to their livestock operation.

New Account

To request a Farm Credit Livestock Insurance Analyzer account, submit the contact form below and include a message about requesting an account.

Existing Account

If you already have a Farm Credit Livestock Insurance Analyzer account, visit cropinsurance.farmcredit.com and click the Login button.

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

Our agents are non-commissioned and 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 Livestock Insurance Analyzer helps determine whether it’s a good time to purchase LRP by providing you easy access to historical data and RMA’s program offerings.

"We chose Farm Credit for our crop insurance because they know our business."

Zach and Grace

Grain and Livestock Producers, Iowa

PLAY VIDEO
Zach and Grace

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.