Livestock Risk Protection (LRP)
LRP is subsidized price insurance for cattle and hogs: pick a coverage price and end date, and it pays if the index finishes below it.
LRP, from USDA's Risk Management Agency, lets you insure a floor on feeder cattle, fed cattle or hogs for a set number of weeks.
You pay a premium, reduced by a federal subsidy. If the price index at the end date is below your coverage price, it pays the difference. There's no margin account and you can cover a small number of head.
Our LRP page shows each day's coverage prices and costs after subsidy, and a calculator for your head count.
Next: USDA reports that move prices
General education about how marketing tools work. Not advice to buy, sell or hedge; talk with your elevator, broker, lender or crop insurance agent about your own situation.