Feeder Cattle
Livestock Risk Protection (LRP)
Livestock Risk Protection-Feeder Cattle is one of the two cattle-related commodity types under LRP. Like all LRP policies, this product is federally reinsured and protects against declining market prices. LRP bases its numbers off of the CME Feeder Cattle Index. When purchasing coverage, you may select from various coverage levels and periods to match the time the feeder cattle will be marketed. This policy has no specific beginning or end date to be purchased and therefore is flexible to everyone’s marketing needs. Updates involving rates, pricing, and ending values are available to customers and producers alike daily.
Eligibility
For the LRP program, there are several different categories under feeder cattle. This includes calves, steers, heifers, predominantly brahman cattle, predominantly dairy cattle, and unborn calves. Feeder cattle also have two weight ranges, the 100-599 pound option, and the 600-1000 pound option. Similar to fed cattle, the annual limit for feeder cattle LRP is 25,000 head per producer per year, and 12,000 head per endorsement.
Specifics
For feeder cattle LRP policies, specific coverage endorsement options are available for 13, 17, 21, 26, 30, 34, 39, 43, 47, or 52 weeks for each specific coverage endorsement. The feeder cattle policy is also currently available in all states. Additionally, to receive an indemnity, you must provide sales records for the cattle.
Coverage may be purchased after the price guarantee has been posted to the RMA (Risk Management Agency) website and before 8:25 AM Central Time the following day, with coverage prices ranging from 75% to 100% of the expected ending value. After enrolling into the Feeder Cattle Policy, coverage starts the same day or when the RMA approves the purchase. This program is built to take some burden away from the producer by protecting them from potential drops in livestock prices. One thing to note is death, loss, and poor performance is not covered under this policy.