Livestock Risk Protection (LRP)
Price floor protection against unexpected declines in the cattle and swine market.
USDA RMA Premium Subsidies
35% - 55% Subsidized
The Federal Crop Insurance Corporation subsidizes up to 55% of your LRP premium for coverage levels up to 79%, 45% for 80-89%, and 35% for 90-100% coverage.
Program Overview
Livestock Risk Protection (LRP) is a USDA Risk Management Agency (RMA) insurance program designed to protect livestock producers against downward price volatility in the feeder cattle, fed cattle, and swine markets.
Unlike traditional futures or options, LRP allows you to set a price floor on your animals without giving up upside price potential. If the national cash settlement index drops below your chosen coverage price on the policy ending date, LRP pays you an indemnity for the difference.
LRP policies are available on a per-head basis, accommodating operations of all sizes from single-head show stock to large commercial herds.
Key Benefits & Coverage Details
Flexible Coverage Levels
Choose coverage levels between 70% and 100% of expected ending values based on daily RMA actuarial tables.
No Minimum Head Count
Insure anywhere from 1 head to thousands per endorsement, tailored to your exact marketing dates.
Significant Federal Subsidies
USDA subsidizes between 35% and 55% of your total premium costs depending on the selected coverage level.
Maintain Upside Potential
If the cash market surges, you capture the higher market price. LRP strictly establishes a safety net below you.
Post-Harvest / End-Date Premium Billing
Premiums are billed at the end of the endorsement period, improving ranch cash flow when you sell.
How the Process Works
Select Coverage & Target Weight
Choose your endorsement period (13 to 52 weeks) and expected target weight category (Weight 1 under 600 lbs, Weight 2 over 600 lbs, steers, heifers, or dairy).
Lock In Your Coverage Price
Based on daily CME price reports and RMA actuarials, lock in a guaranteed floor price for your endorsement end date.
Market Your Livestock Normally
Sell your cattle when and where you want. Coverage is independent of your local sale price—it settles against the Chicago Mercantile Exchange (CME) feeder cattle index.
Collect Indemnity If Prices Drop
If the final ending index falls below your covered price floor, USDA issues an indemnity check directly to you.
Eligible Coverage Scope
Get Started Today
Talk directly with our licensed agents and risk advisors. We’ll analyze your operation and calculate exact coverage projections.
Important Deadline:
Policies can be purchased daily after market close (typically 3:30 PM to 9:00 AM Central Time Monday through Friday), subject to RMA daily rate availability.
Non-Binding Notice:
Submitting an inquiry does not bind coverage. Coverage must be confirmed in writing by 4T Ag Insurance.
Livestock Risk Protection (LRP) FAQs
Common questions about Livestock Risk Protection (LRP) coverage and claims.
No. You are required to maintain ownership of the insured livestock up to the last 60 days of the endorsement period. You can sell within that 60-day window or keep them; settlement is calculated purely against the CME index.
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