News & Events
LRP: Feeder Cattle
Livestock Risk Protection-Feeder Cattle is one of the two cattle-related commodity types under LRP. Like all 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 CME Feeder Cattle Index. When purchasing coverage, you may select from various coverage levels and periods to match the time the feeder cattle will be marketed. This policy has no specific beginning or end date to be purchased and therefore is flexible to everyone’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 Feeder 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. 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 Feeder 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 increase the effectiveness of the policy even more. For example, head limits and subsidy rates have both been raised, the livestock ownership requirement has been changed to 60 days before coverage expiration, unborn calves have been added to the policy to allow cattle to be insured before birth, and now premiums may be paid at the end of the endorsement period rather than upfront.
Hopefully, this information has clarified some of your questions regarding the LRP Feeder Cattle Policy. With the many insurance policies offered in terms of risk protection, it is easy to confuse one policy with another. We are here to help you with any question you may have, big or small.
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