By Blake Jackson
Livestock producers have gained added flexibility thanks to recent updates to the USDA’s Livestock Risk Protection (LRP) program, which offers insurance coverage to shield against sudden price drops in feeder cattle, fed cattle, and swine markets, according to Jacob Hefley, University of Missouri Extension field specialist in agricultural business.
The LRP program, a federally administered insurance tool, enables producers to set a price floor for their livestock while still having the opportunity to benefit from market gains.
Available year-round through approved insurance agents, it offers producers financial protection and stability during volatile market conditions.
Key updates to the program include extended eligibility for forward-contracted animals, new coverage options for cull dairy cows marketed for beef, and a drought hardship exemption.
The exemption ensures feeder cattle sold early remain eligible for indemnity if drought conditions meet qualifying criteria. These changes make LRP more versatile and suitable for diverse livestock operations.
MU Extension has also revised its publication of Livestock Risk Protection (LRP) Insurance to reflect these enhancements. The updated guide explains how LRP functions, outlines current coverage details, and provides practical examples of premium and indemnity calculations.
“The goal of the guide is to make complicated program easier to understand,” says Hefley. “It’s a resource for producers who want to better understand how LRP coverage works and how to evaluate it as part of their marketing decisions.”
Photo Credit: gettyimages-jacqueline-nix
Categories: Missouri, Livestock, Beef Cattle, Dairy Cattle