Cattle image with Livestock Risk Protection

Livestock Risk Protection

Livestock Risk Protection (LRP) is a federally subsided insurance plan that protects cattle and swine producers against a decline in market prices. It does this by setting a floor price. It works like a discounted put option, subsidized from 35-55%. The program is available in all 50 states and counties, and allows protection for smaller herd sizes, as coverage is set on a per head basis. In addition, there are NO brokerage feeds required.

LRP also received an update for the 2026 year. To learn more about the changes, take a look at our Understanding the 2026 LRP Changes article.

How Does LRP Work?

LRP insurance begins with an application. This application is built to ensure that you are eligible for the program, and once complete and accepted by the RMA, allows you to start purchasing specific LRP endorsements. LRP endorsements can be purchased throughout the year, with different available offers each day excluding weekends and holidays. If the RMA website is not offering any coverage or prices, LRP is unavailable at that time, and the RMA also reserves the right to suspend sales for the program at any time due to market limitations and or volatility. These coverage prices are based off the future prices on the Chicago Mercantile Exchange (CME).

For each day, the offers begin at 3:30 PM and end at 8:25 AM Central time the next day.  From these offers, you can work with your agent to select a plan and customize the options to best fit your operation. Insurance periods can range from 13 to 52 weeks, aligning with your expected market date, and there are a variety of coverage levels to pick from.

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How Do LRP Claims Work?

Livestock Risk Protection claims are automated so you do not have to file a claim like you would with home or auto insurance. There are no payments up front, everything is settled at the end of the contract where you either receive a bill, or a check for the premium. The premium billing date is the first day of the second month after the contract end date. This means if your endorsement period ends in November, your premium bill would be due on January 1st of the next year.

The actual payments are determined by the difference between the actual ending value in the market, and the coverage price you originally selected for the policy. If the ending value is higher than your coverage price, you will receive a bill for the premium. If it is lower than the coverage price, the indemnity you receive will have the premium cost deducted from it to cover the price of the coverage. Proof of ownership or sales records will be required before you can collect the indemnity. This protects the program by making sure that people are not purchasing LRP coverage on animals they do not own.

It is important to remember that LRP does NOT cover animal mortality or sickness. You have the option to remove any deceased livestock from the endorsement by properly notifying the Approved Insurance Provider within 72 hours.

What Livestock Are Eligible?

Feeder Cow Looking At Camera

Feeder Cattle

LRP – Feeder cattle has coverage options for several categories of cattle, including calves, steers, heifers, mostly Brahman cattle, mostly dairy cattle, and unborn calves. There are also two weight ranges, 100-599 pounds, and 600-1000 pounds.

Fed Cow in a Field

Fed Cattle

LRP – Fed cattle has two categories, one that covers steers and heifers that are ready for market, around 1000-1600 pounds, and one that covers dairy cull cows between 800 and 1500 pounds that are to be marketed for slaughter near the end of the insurance period.

Swine

LRP-Swine is specifically designed to cover swine that producers expect to have and market within a range of 189-351 pounds live weight at the time of the slaughter. For Hogs, the max number coverable in a given year is considerably higher than cattle at 750,000 hogs per producer.

Check out our Livestock Guard software!

How Does Our Software Help?

Producer breakeven is used in our formula to determine coverage levels. Then historical analysis checks to see if the policy would have provided value in the past.

Talk to your agent about receiving daily offers!

LRP FAQ

No, it is not required for the producer to sell their livestock during the contract period.

Answer: If cattle perish and your agent is notified within 72 hours of you learning of the death, the coverage remains in effect, and the producer is eligible for indemnities due to price loss, even on those animals which perished.

Answer: No, LRP covers the price of livestock against the Chicago Mercantile Exchange.

Answer: Yes! Calves can now be covered before hooves hit the ground. Purchasing a Specific Coverage Endorsement for unborn calves requires they are born prior to the Contract End Date and expected to weigh less than 600 lbs. at Contract End Date. Producers should keep breeding records or other documents which can verify ownership of calves in utero.

Answer: Yes! You can and should market your physical animals however you see fit. LRP does not change your ability to seek buyers to take delivery of your calves. Keep in mind that you will owe premiums but lose coverage on any animal transferred out of your ownership more than 60 days before the Contract End Date. Be sure to discuss with your agent about your marketing plans and delivery dates to avoid this mistake.

Answer: No, it only insures against the Chicago Mercantile Exchange, though most local markets do tend to track with the CME.

Answer: Yes, as long as it is within 60 days of the end of the contract.

Answer: Younger producers and those who are new to agriculture may benefit from USDA’s Beginning Farmer and Rancher (BFR) program. In general, BFR insureds within their first ten years of production will qualify for an additional subsidy on LRP and other Federal Crop Insurance Corporation insurance plans.

Looking for More Livestock Risk Protection Resources?

RMA Fact Sheet Swine

RMA Fact Sheet Fed Cattle

RMA Fact Sheet Feeder Cattle

Missouri EDU Extension LRP Explainer

Introduction to LRP

LRP Explainer

LRP Questions and Answers

LRP in 3 Easy Steps!

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insure your cattle?

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The information contained herein is not an offer to sell insurance.  No binder, insurance policy, change, addition, and/or deletion to insurance coverage will be effective unless and until confirmed directly with a licensed agent.  Please note any proposal of insurance we may present to you will be based upon the values developed and exposures to loss disclosed to us by you.  All coverages are subject to the terms, conditions and exclusions of the actual policy issued. Not all policies or coverages may be available in every state.
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