WHAT IS CATTLE MARKET INSURANCE?
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CATTLE MARKET INSURANCE
Cattle market insurance coverage is also known as Livestock Risk Protection (LRP) insurance. LRP is a type of revenue protection that enables a producer to lock in a floor price for their livestock and be paid an indemnity if the overall market price dips below the chosen coverage price during their chosen endorsement period.
LRP insurance falls into the crop insurance category in Title XI of the Farm Bill, meaning that it is a USDA-subsidized program. The Federal Government will pay a portion of the producer's premium, making this coverage very affordable for most operations.
CUSTOMIZED POLICIES
Enjoy insurance policies that are custom-tailored to meet your operation’s unique needs
YEAR-ROUND SUPPORT
Benefit from year-round access to Ag-Industry experts eager to help manage risk on your ranch
Ranching Expertise
Know you’re working with a team of fellow ranchers, who understand your challenges
MAPPING SOFTWARE
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100
+
Years
Lean on a team with 100+ years of ranching experience dedicated to your operation’s success.
92
%
RENEWAL
Enjoy the same coverage and support that has led to 92% of ranchers renewing their policies year after year.
9.7
/10
Ranches
Entrust your coverage with a team that has received a satisfaction rating of 9.7/10 from insured producers
50
M
ACRES
Make your ranch a part of the 50 million+ acres currently safeguarded with PRF insurance.
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HOW DO LRP INSURANCE POLICIES WORK?
LRP insurance insures the livestock market prices, not the livestock itself.
CHOOSE AN ENDORSEMENT PERIOD
One of the first steps to using an LRP insurance policy is choosing your coverage window AKA your endorsement period. Policies can last anywhere between 13-52 weeks. During this time, you are covered if the livestock overall market price drops lower than your chosen floor price by the end date.
LOCK IN YOUR FLOOR PRICE
Along with an endorsement period, you also are able to lock in a floor price based on the USDA’s Agricultural Market Service Expected Ending Price, which is updated almost daily. If the market price (based on the futures and CME feeder index) dips below your chosen floor price during your coverage period, the difference is covered by an indemnity payment through your LRP policy.
NO PREMIUM DUE UP-FRONT
Your portion of your LRP insurance policy premium is tax-deductible and is not due until 30 days after the end of your endorsement period. However, if your indemnity covers the premium balance in full, you may not have to pay out of pocket at all, and any leftover indemnity will go straight to you to use however you choose.
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SELL (OR DON’T SELL) LIVESTOCK AND RECEIVE AN INDEMNITY
Producers insured with LRP are able to sell their livestock within 60 days of the end of their endorsement period, but they are not required to sell livestock insured. If a producer retains ownership of their livestock during their coverage period, they can still receive an indemnity payment if the overall market has declined. Likewise, a producer would also receive an indemnity if the market prices dip below their floor price and they do sell their livestock during an endorsement period.
Whether or not you actually sell your stock, and for what price, does not matter. Your receiving of an indemnity from your LRP insurance is only dependent on the overall USDA’s Agricultural Market Service Expected Ending Price dropping below your floor price during your coverage period.
UNLIMITED UPSIDE POTENTIAL
With an LRP insurance policy, your upside potential is unlimited. Although you are covered if the market dips below your floor price, you are not restricted if the market price for your livestock rises above your floor price. You are able to cash in on the higher market price and still retain a profit once you pay off the balance of your premium.
Again, you are able to retain ownership of your stock if the overall market price rises above your floor price, but your premium would still be due 30 days after the end of your endorsement period.
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REDD SUMMIT ADVISORS LRP INSURANCE POLICIES
At Redd Summit we believe that even though the cattle market is volatile, your profits shouldn’t be.
Through Redd Summit, you can secure LRP insurance for your:
- Fed and feeder cattle
- Unborn calves
- And, there is no minimum number of head required
You’ll also have the support of our industry experts, who closely monitor market conditions, to determine when it is the best time to enact your policy and lock in your floor price. Then, when your policy ends, either you are paid an indemnity or a premium is due. In both scenarios, your operation remains profitable because you are protected from cattle market declines.
Give us a call or schedule a meeting with an agent to learn more about LRP through our insurance experts.
100
+
Years
Lean on a team with 100+ years of ranching experience dedicated to your operation’s success.
92
%
RENEWAL
Enjoy the same coverage and support that has led to 92% of ranchers renewing their policies year after year.
9.7
/10
RATING
Entrust your coverage with a team that has received a satisfaction rating of 9.7/10 from insured producers
50
M
ACRES
Make your ranch a part of the 50 million+ acres currently safeguarded with PRF insurance.
Cattle Market Insurance
FAQs
Answers to your questions.
LRP insurance through Redd Summit Advisors is available for the prices on fed and feeder cattle and feeder calves that haven’t hit the ground yet.
Because LRP insurance is self-funding, you’ll only owe a premium if the market prices rise above your floor price, or if your indemnity does not cover the balance in full. Premiums are not due until 30 days after the end of the endorsement period and are tax-deductible.
The premium on your LRP policy varies depending on your operation. However, the USDA subsidy makes the US Government responsible for a portion of your premium. However, if the market price drops during your endorsement and your indemnities cover the premium in full, any additional payments go straight to you with no up-front or out-of-pocket cost.
The prices insured through LRP insurance are based on the USDA’s Agricultural Market Service, which is updated almost daily.
Endorsements can last anywhere from 13-52 weeks. Producers are able to market their livestock within 60 days of the end of their endorsement period but are not required to actually sell their livestock insured.
You can invest in cattle futures by creating an account with the futures exchange through your broker and depositing the correct margin. Then you can start trading cattle futures contracts.
LRP insurance covers the cattle market prices, not the cattle themselves. However, there are other insurance products that cover mortality as well.
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Get a free lrp policy preview
Find out how LRP would perform on your land this year without having to sign up!
WE’D LOVE TO COME SEE YOUR RANCH!
We make regular visits to ranches across the country, we would love to come visit you and show you the benefits of PRF insurance.
Trusted by 800+ ranches & 50 million acres
"PRF Insurance helped maintain our herd size. It even increased a little during dry years."
Dennis W Jones
"PRF through Redd Summit has greatly improved our operation in a short time by balancing cash flow ebbs and flows that were due to dry spells. Redd Summit is great to work with and diligent in answering any questions that we might have."
Jacob Doonan
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