Risk Management Programs
Feeders Preference
- Allows member access to CME Futures
- Full contracts based on 40,000 pounds for live cattle and lean hogs. Contracts based on 50,000 pounds for feeder cattle
- Mini contracts based on 20,000 pounds for live cattle and lean hogs. Mini contracts based on 25,000 pounds for feeder cattle
- Gain or loss on futures position is settled on livestock check
- Livestock sold through UPI
- UPI makes margin calls up to $150,000, upon approval
- Offers protection against significant price changes in volatile markets
- Enables producers to operate on fairly predictable margins
- Rate discounts if you have a loan and/or a livestock marketing agreement
Packer Contracts
- UPI acts as a liaison between customer and packer.
- Reserve shackle space up to one year.
- Multiple pricing choices include; leaving contract as basis until necessary to price, placing targets (strike
prices), pricing at the market, converting to 5-area pricing, and hedging. - Receive continuous, updated tracking and pricing confirmations of contracts and positions.
Put and Call Options
The market can be as unpredictable as the weather…but our Put and Call Options can help
you minimize risk while maximizing profit!
This service will establish an estimated minimum value for your commodities while allowing you to
participate in potential higher prices for a fixed amount of time. To ensure you get the right coverage for
your farm, we can help you tailor the contract to your specific goals and risk tolerances.
How do you benefit?
• You can establish a floor futures price while still having the option to participate in potential higher prices.
• This program can be used with various contract types including Feeders Preference futures agreements
and packer contracts.
• UPI is here to help you understand the process every step of the way.
Livestock Insurance
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
Livestock Risk Protection Programs
- LRP – Fed Cattle
- LRP – Feeder Cattle
- LRP – Swine
- Livestock Insurance Overview
- Livestock Risk Protection – What to Expect in a Loss Situation
Click here to calculate your quote.
Rainfall Index - Pasture, Rangeland and Forage Insurance (RI-PRF)
RI-PRF provides protection against lack of precipitation. Coverage can be purchased by landlords, tenants, and owner/ operators for those acres important to their haying or grazing operation. Producers may select from a variety of coverage levels, productivity factors and two-month index intervals to personalize their plan. When the final grid index falls below your trigger grid index, you may receive an indemnity.
- RI-PRF is a federally reinsured program
- RI-PRF may cover all or a portion of the insured’s acreage, providing flexibility when deciding how to cover specific risk
- Plan uses long-term, historical, gridded precipitation data for the grid ID and index interval
- Rainfall Index, Pasture, Rangeland and Forage Insurance
