Livestock Risk Protection (LRP)
Are you a livestock producer? Worried about prices? Livestock Risk Protection provides your business with protection against declining market prices for fed cattle, feeder cattle and swine. LRP is available all year long for producers with an ownership share in eligible livestock.
Benefits of LRP
- No margin calls or brokerage fees
- No upfront costs, premiums due at the end
- Limited basis risk coverage
- The aggregate cash price used better reflects actual price received
- Any number of head can be covered (up to limits)
- Numerous endorsement period options
- Producer selects the period that fits their risk management plan
- Wider range of target weights than CME
- LRP is an insurance policy and may be viewed more favorably by lenders than hedging or speculating (derivative products)
To learn more view our Livestock Risk Protection flyer here.