Livestock Risk Protection?
Managing risk can be confusing, complicated, and unpredictable. Where do you start? What are your options?
Livestock Risk Protection (LRP) protects cattle and swine producers against unexpected national market price drops. LRP is a valuable tool for insuring your livestock against today's volatile market.
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:
No More Margin Calls
Focus on raising and selling your livestock without worrying about the expenses of margin calls or the financial risks that come with them.
What is the difference between LGM and LRP?
Whereas LGM covers the price of the gross margin per head, LRP uses the Chicago Mercantile Exchange’s contract prices to insure the price of sold livestock. While LRP is typically a better fit for cow-calf operations, LGM is the preferred option for most feedlot operations.
LRP VS CME Trading
How Do I Purchase LRP?
With the pressure that is on the cattle industry today, you need experienced, licensed insurance agents to help your business. This is where Stockguard comes in — we’ll help you insure your herd with the best policy at the right time.
Get Flexibility in Your Coverage
LRP coverage is available year round for your operation, with insurance periods to match your operation’s market timing needs. You also have numerous coverage options, ranging from 70-100% of the expected ending market value of animals.
Also, you can sell LRP-covered livestock up to 60 days prior to the end date of your insurance policy, which is beneficial if you end up facing drought or other conditions outside of your control.