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How to Get Started with Livestock Risk Protection

Managing risk can be confusing, complicated, and unpredictable. Where do you start? What are your options?

LRP Overview

Livestock Risk Protection (LRP) insures your livestock against unexpected national market price drops. It’s a valuable tool that protects your investment for when you’re ready to bring your herd to the market.
Livestock Risk Protection cattle and swine producers

Insure the Numbers You Need

LRP has no minimum head limits, making it a viable option for operations of all sizes. LRP contracts are customized on a per head basis, so you can insure thousands of animals, or as few as one head per policy.

The maximum head limit number for LRP has increased in recent years and most likely will continue to increase in the future. The current limits are:

How to Get Started

Steps for Success

Once the endorsement period ends, the actual ending value of your livestock will be calculated and indemnities will be sent out.

How do I know LRP is right for me?

Compare costs between LRP and the CME for your operation below. We're here to listen! If you want additional help, contact an agent and we'll gladly walk you through your options.

We know things can get complicated so let's break it down!

Select Options

Place Order

Guard Your Investment


In September 2015, an Oklahoma producer buys specific coverage endorsement for 100 head of 5.5 cwt feeder steers for 17 weeks.

Example from  “Livestock Gross Margin & Livestock Risk Protection.” Oklahoma State University

You can find the needed information in regard to the coverage listed on the RMA website or through our portal at

How to Calculate the Premium

Insured Value: 100 head x 5.5 cwt = 550 cwt x $193.28 = $106,304 

(total cwt x expected ending value = insured value)

Premium: $106,304 x .048032 = $5,106 – 13% subsidy = $4,442 or $44.42 per head

Ending Value and Indemnities

The settlement process begins after the coverage period ends and the producer brings their cattle to market.

In this example, the producer insured their herd of feeder cattle for $106,304, with a $4,442 premium.

After the coverage period ends, the producer is given an end value of $95,854 for their herd.

Because this end value is $10,450 lower than the insured value, the producer is owed an indemnity of $10,450 to cover the difference between the insured value and end value for their livestock. After their premium is subtracted, the producer will receive a net indemnity of $6,008.

Leave the number crunching to us

Check out our portal, where you can easily analyze, track, and manage your LRP and insurance options. It’s simple - let us do all the math for you.