Livestock



Protect your livestock investment from market fluctuations!


You can control lots of things in your operation. Unfortunately, the market is not one of them. Livestock Risk Protection (LRP) policies can help protect livestock against decreases in value that are out of your control.


No brokers! No margin calls!


LRP Policy


LRP is single-peril price risk coverage for future livestock sales. It is similar to a put option in that it allows producers to establish a floor price for protection while leaving upside price potential open. Purchasing of this insurance provides price risk protection by paying producers if the national cash price index falls below the insured price level at the ending date of the policy. The USDA Risk Management Agency (RMA) offers the insurance as an alternative to traditional futures and options.

This insurance may be purchased throughout the year. Premium rates, coverage prices, and actual ending values are posted online daily.

For a free LRP estimator click the link below!
https://eharvest.hudsoncrop.com/policyext/LrpEstimator



Availability


Feeder Cattle Policies – Available for up to 3,000 head of Feeder Cattle that are expected to weigh up to 900 pounds at the end of the insurance period. Coverage is available for calves, steers, heifers, Brahman, and Dairy cattle. The limit for Feeder Cattle is 6,000 head per producer per year (July 1 to June 30).

Fed Cattle Policies – Available for up to 3,000 head of Fed 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 limit for Fed Cattle is 6,000 head per producer per year (July 1 to June 30).

Swine Policies – Available for up to 20,000 hogs that are expected to reach market weight near the end of the insurance period. Target weight is the lean weight per head (total weight per head multiplied by 0.74). The target weight for swine should be between 1.5 cwt and 2.25 cwt per head. The limit for swine is 75,000 head per producer per year (July 1 to June 30).

Lamb Policies - Available for up to 2,000 lambs, weighing between 50 and 150 pounds, that will be marketed near the end of the insurance period. Lambs must also be of an age that qualifies for the Agriculture Marketing Service grade standards of live lambs. The limit for lambs is 28,000 head per producer per year (July 1 to June 30).

The coverage periods available range from 13 to 52 two weeks depending on species and class.

Finally, choose coverage prices ranging from 50 to 100 percent of the expected ending value (80 to 95 percent for lambs). At the end of the insurance period, if the actual ending value is below the coverage price, an indemnity payment for the difference between the coverage price and the actual ending value may be received.



Limitations


The RMA monitors capacity levels, and when the funding limit has been reached, sales for this product will cease. LRP does not insure against death, loss or poor performance. Quotes and coverage are based on availability of market data. If sufficient data does not exist for a trading day, no quotes or coverage can be done for that day. The Federal Crop Insurance Act limits the funds available to support livestock plans of insurance to $20 million in a fiscal year.


Contact Us


254-582-3888
cropandrange@cropandrange.com
101 Industrial Loop, Suite 118 | Hillsboro, TX 76645

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