Livestock Insurance

How Does LRP Coverage Work?

The producer chooses an end-date for the endorsement that is the closest to the expected market/slaughter date for their livestock. Producers also select from a wide variety of coverage options. LRP pays out an indemnity on the ending date of the endorsement if the national cash price average is below the insured coverage price.

What Does It Not Cover?

LRP does not protect against death loss, theft, or any other loss/damage. Once LRP insurance is selected the producer must notify their insurance agent in cases of death of livestock within 72 hours.

When Can I Purchase LRP?

LRP coverage is offered year-round. Insurance availability is based on options trading on the Chicago Mercantile Exchange (CME). Prices typically release at approximately 3:30 p.m. CT and must be elected by the producer before 8:25 a.m. CT the following day.

LRP Benefits

• Affordable coverage with large premium subsidies.
• Premium payments are due at the end of the insurance period.
• Uses area pricing to determine if an indemnity is due. (The producer’s price is never used).
• The ability to market livestock up to 60 days prior to the end of the insurance period.

Additional Information

• Must have full or partial ownership of the livestock to be insured.
• You are not required to insure all livestock.
• Livestock must be intended for market/slaughter.
• Producers must have Form AD 1026 on file with the FSA to qualify for the subsidy.