News & Events
LRP: Fed Cattle
Livestock Risk Protection-Fed Cattle is one of the two cattle-related commodity types under LRP. Like all the LRP policies, this product is federally reinsured and protects against a potential fall in the cash price. The cash value related to this product is the 5 Area Weekly Weighted Average Direct Slaughter Cattle. When purchasing coverage, you may select from various coverage levels and periods to match the time the fed cattle will be marketed. This policy has no specific beginning or end date to be purchased and therefore is flexible to each individual’s marketing needs. Updates involving rates, pricing, and ending values are available to customers and producers alike daily.
Other factors allow this policy to be very accessible and practical. The Fed Cattle policy is available in all 50 states. You may insure up to 6,000 head per SCE (specific coverage endorsement) and up to 12,000 head per year. There is only one type for fed cattle, steers & heifers, unlike feeder cattle. Coverage may be purchased after the price guarantee has been posted to the RMA (Risk Management Agency) website and before 9:00 am Central Time the following day. After enrolling into the Fed Cattle Policy, coverage starts the same day or when the RMA approves the purchase. This program is built to take some burden away from our producers by protecting them from potential drops in livestock prices. One thing to note is death loss and poor performance is not covered under this policy.
With the 2022 crop year, there have been updates to make this policy even more effective. Head limits and subsidy rates have been increased. In addition, the livestock ownership requirement has been changed to 60 days before coverage expiration, and now premiums may be paid at the end of the endorsement period rather than upfront.
The differences between Feeder and Fed cattle are as thin as our Colorado air, but both policies are equally important. Hopefully, the information illustrated above answered any potential questions or concerns you may have. If you are still unsure which approach fits your operation, we are just a call away. Anyone of us would be happy to answer any other questions you may have!
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