WV Small Farm Center

Livestock Risk Protection

This page serves as a resource for livestock producers who are interested in purchasing crop insurance. If you are interested in Livestock Risk Protection, the information provided here can assist you in making the decision to insure your income. Livestock Risk Protection is unlike other livestock insurance policies, in that it protects you against a market decline, rather than death loss.

Understanding LRP

This program is based on the Chicago Mercantile Exchange Feeder Cattle Reported Index which is posted daily.

How do I know if I get paid?

Daily LRP Coverage Prices, Rates, and Actual Ending Values
This site will supply you with the Expected End Value, Coverage Price, Coverage level, premium cost, and end date of the contract. If you access it about 48 hours after the contract matures, you can learn what the Actual End Value is thus determining whether or not you earn an indemnity payment.

General Information on Fed & Feeder Cattle

Feeder Cattle
Fed Cattle

Livestock Risk Protection (LRP)-Fed Cattle is designed to insure against declining market prices. Beef producers may select from a variety of coverage levels and insurance periods that correspond with the time their market-weight cattle would normally be sold. LRP-Fed Cattle and Feeder Cattle may be purchased throughout the year from approved livestock insurance agents. Premium rates, coverage prices, and actual ending values are posted online daily.

Coverage Availability

Feeder Cattle: Cattle producers submit a one-time application for LRP-Feeder Cattle coverage. After the application is accepted, specific coverage endorsements may be purchased for up to 1,000 head of feeder cattle that are expected to weigh up to 900 pounds at the end of the insurance period. The annual limit for LRP-Feeder Cattle is 2,000 head per producer for each crop year (July 1 to June 30). All insured calves and cattle must be located in a State approved for LRP-Feeder Cattle at the time insurance is purchased. Coverage is available for the calves, steers, heifers, predominantly Brahman, and predominantly dairy cattle categories. Feeder cattle producers may also choose from two weight ranges: under 600 pounds and 600-900 pounds.

Fed Cattle: Beef producers submit a one-time application for LRP-Fed Cattle coverage. After the application is accepted, specific coverage endorsements may be purchased for up to 2,000 head of heifers and steers (weighing between 1,000 and 1,400 pounds) that will be marketed for slaughter near the end of the insurance period. The annual limit for LRP-Fed Cattle is 4,000 head per producer for each crop year (July 1 to June 30).

Lamb Coverage

The number of lambs insured under a Specific Coverage Endorsement is limited to 2,000 head. The annual limit for LRP-Lamb is 28,000 head per producer for each crop year (July 1 to June 30). The length of insurance available for each Specific Coverage Endorsement is 13, 20, 26, or 39 weeks. Lambs covered under the policy are feeder or slaughter lambs that are expected to weigh between 50 and 150 pounds by the ending period.

What is insured? Sheep producers may select coverage prices ranging from 80 to 95 percent of the expected ending value. At the end of the insurance period, if the actual ending value is below the coverage price, an indemnity will be paid for the difference between the coverage price and actual ending value. The actual ending values are based upon the weekly average prices for “Formula Live Lambs” as reported by USDA’s Agricultural Marketing Service. Actual ending values will be posted on Risk ManageŽment Agency’s Web site at the end of the insurance period.

Lamb

Swine Coverage

Specific coverage endorsements may be purchased for up to 10,000 head of hogs that are expected to reach market weight near the end of the insurance period. The annual limit for LRP-Swine is 32,000 head per producer for each crop year (July 1 to June 30). The length of insurance coverage available for each specific coverage endorsement is 13, 17, 21, or 26 weeks.

What is insured? Pork producers may select coverage prices ranging from 70 to 100 percent of the expected ending value. At the end of the insurance period, if the actual ending value is below the coverage price, the producer will be paid an indemnity for the difference between the coverage price and the actual ending value. Actual ending values are calculated from price series data reported by USDA’s Agricultural Marketing Service. Actual ending values will be posted on Risk Management Agency’s Web site at the end of the insurance period.

Swine