The cattle market has always been complex. Traditional methods of protecting against drops in market price, such as hedging with futures, can be difficult, time-consuming and inconsistent.

Now, with the new Livestock Risk Protection program provided by Redd Summit Advisors, things just got a lot easier for ranchers across the country.

Livestock Risk Protection (LRP) is a USDA subsidized insurance program that helps protect producers from the risks that come from market volatility. With LRP, producers are able to insure a floor price for their cattle and are paid an indemnity if the market value is lower than the insured price. This allows producers to essentially guarantee a minimum market price for their cattle, while retaining the potential to capture the upside if market prices increase.

Livestock Risk Protection insures the prices, not the animals themselves. The prices insured through LRP are based on the USDA’s Agricultural Market Service, which updates prices daily. A LRP policy can last anywhere between 13 and 52 weeks. Redd Summit Advisors offers LRP for both Fed and Feeder cattle

If market prices drop before your herd gets to market, LRP will help protect your investment without sacrificing upside potential.