USDA subsidized Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM) insurance.
Insure against market price declines.
Protect against loss of gross margin.
Protect against a decline in feeder and fed cattle prices with Livestock Risk Protection (LRP).
LRP insurance provides the flexibility to choose from a variety of coverage levels and insurance periods that match your farm's market timing needs.
How does it work? At the end of your insurance period, if the actual ending value is below the coverage price, an indemnity will be paid for the difference. Annual limit is 12,000 head per producer for each crop year.
Protect against loss of gross margin with Livestock Gross Margin (LGM).
LGM insurance protects against a decrease in live cattle prices and an increase in feeder calf and corn costs in one bundle. Livestock Gross Margin (crush margin) = Live Cattle Price - Cost of Corn - Cost of Feeder Calf.
How does it work? Producers can now purchase coverage weekly instead of monthly with premiums due at the end of the policy period. There are no limits to the number of cattle covered.