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
5 Easy Steps to Livestock Risk Protection Insurance
TALK WITH YOUR AGENT
We meet with you to explain how LRP works and what matters for your herd—coverage prices, headcounts, and timing.
SIGN AN APPLICATION
No pressure and no commitment until you decide to lock in a rate.
TRACK LRP RATES TOGETHER
We help you keep an eye on daily rates so you can make a smart decision when the time is right.
SIGN AN ENDORSEMENT
When you’re ready, we move fast to lock your rate and sign the endorsement.
LOOK AT MORE LRP OPTIONS
When your coverage ends, we sit down with you to review options and make sure you’re set for the next group.
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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