Livestock Risk Protection (LRP)
Manage Market Risk
Support when livestock prices fall
LRP helps protect the value of your livestock by insuring against unexpected drops in market prices. You choose the coverage level and the time frame that matches your marketing plans. If the national price index falls below your insured price when it’s time to sell, the policy may pay the difference. It’s a useful tool for cattle and hog producers looking for a simpler way to reduce price risk.
What LRP Covers
Tailored for real-world operations
LRP can be used with feeder cattle, fed cattle, and swine. It’s designed to match your sale window and scale — whether you’re marketing 10 head or a few hundred.
Market Price Declines
Covers you if the national price index falls below your selected coverage price.
Flexible Endorsement Periods
Choose a timeframe that lines up with your sale date — from 13 to 52 weeks.
No Futures Account Needed
Unlike hedging, LRP is a straightforward insurance product without margin calls.
Government-Subsidized Premiums
USDA helps cover part of the cost, making the coverage more affordable.
Available for All Operation Sizes
You don’t need to be a large feedlot to use LRP — it works for small and mid-sized farms, too.
How does LRP work for livestock producers?
LRP allows you to select a price coverage level and marketing timeframe for your animals. If the national price index falls below that level when your coverage period ends, you may receive an indemnity payment. It’s meant to reduce the risk of selling livestock during a price downturn. You keep control of your sale process and don’t have to sell through a specific channel.
What types of livestock are eligible for LRP?
In North Carolina, producers can insure feeder cattle, fed cattle, and swine through LRP. The policy is based on national indexes, so it applies regardless of where you’re located in the state. Whether you’re raising 30 head or 300, you can use LRP. We’ll help match the right coverage window to your marketing plan.
Is this the same as futures or hedging?
No — LRP is simpler and doesn’t require a futures trading account or margin management. It’s insurance, not speculation. You select a price and time window, pay the premium, and if the market drops below your insured price, a claim may be paid. It’s designed to be accessible to everyday producers, not just big operations.
What if I sell my livestock early or don’t sell them at all?
You don’t have to sell on a specific date or prove your sale price. LRP is based on the national index, not your actual transaction. As long as the livestock are still owned and eligible when the policy ends, you can still qualify for a payment if the index falls. This flexibility makes it practical even when sale plans shift.
How do I get started with LRP?
First, we’ll help you get set up with a livestock policy so you’re ready to purchase endorsements when needed. From there, you can select specific groups of animals to insure when prices are favorable. The sign-up process is quick, and you don’t have to insure your whole herd all at once. Many producers start small and adjust over time as they see how it works.