LIVESTOCK RISK PROTECTION (LRP) INSURANCE
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what is LRP INSURance?
Livestock Risk Protection (LRP) insurance is a federally subsidized program that allows producers to protect against declines in market prices, without sacrificing upside potential.
Through LRP insurance, cattle producers can lock in a floor price for their cattle and get paid an indemnity when market prices dip below this chosen price at the end of their endorsement period. Because LRP insurance is subsidized by the USDA, this coverage can be very affordable!
HOW DOES LRP INSURANCE WORK?
LRP insurance insures the livestock market prices, not the livestock itself. If market prices drop below your insured floor price at the end of your endorsement period, LRP insurance will help protect your investment by issuing an indemnity on the price difference!
LRP insurance through Redd Summit Advisors is available on both fed and feeder cattle.
LRP insures the prices, not the animals.
Endorsements can last anywhere between 13 and 52 weeks.
Producers are able to market and sell livestock within 60 days of the end of the endorsement, but are not required to actually sell livestock insured.
No minimum number of head required.
Premiums are tax-deductible and not due until 30 days after the end of the endorsement period.
Have more questions about LRP insurance? Talk to an expert today.
LRP DAILY RATES
LRP FAQs
Answers to your LRP 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.
how to get lrp insurance
6 Easy steps to LRP insurance.
Sign an application
Sign an application and take your first step towards a secure financial future in volatile markets.
experts watch the market for you
Redd Summit's market experts continuously monitor market conditions, so that you can lock in your coverage immediately when conditions are right for your operation.
Strategic Activation
You will work closely with LRP experts to decide when it is the best time to enact your LRP insurance policy.
Flexible Coverage Duration
LRP policies through Redd Summit are tailored to meet your needs, with durations ranging from 13 to 52 weeks.
Policy Conclusion
Upon policy termination, either an indemnity is paid or a premium is due, concluding the insurance cycle.
Enact a new policy
With one policy cycle completed, you are now ready to enact a new policy, maintaining your financial safety net.
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.
The cattle markets are volatile, but your profits shouldn't be.
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