Risk Management Programs

The extremely volatile conditions of the market often cause producers to have more questions than answers, especially in determining how to manage the downside effects on their business.  Livestock Risk Protection (LRP) is a viable and flexible way to manage the risk associated with price volatility, increasing production costs and tightening profit margins.

Benefits of Livestock Risk Protection (LRP)

• LRP is a federally reinsured program
• Premiums are subsidized
• Producers can select from a variety of coverage levels and insurance periods to match the time the commodity would normally be marketed
• Coverage may be purchased throughout the year
• Premium rates, coverage prices and actual ending values are posted online for each sales effective date
• At the end of the insurance period, if the actual ending value is below the guarantee, an indemnity would be paid for the difference