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What is Livestock Risk Protection Insurance?

Kathleen Brooks and, Jay Parsons (August, 2014)

Summary

Livestock Risk Protection (LRP) Insurance is a price-risk management tool available to feeder and fed cattle producers as well as swine and lamb producers. This single-peril insurance program is offered by USDA Risk Management Agency (RMA) and is available from licensed agents through the private crop insurance industry. An LRP policy allows producers to protect against the risk of national prices falling below an established coverage price. While LRP covers price risk, it does not cover production or mortality risks. This NebGuide will discuss how to use LRP in a feeder cattle framework with an example, followed by a discussion on implications.