Livestock Risk Protection

Our Program:

Ag Hedge Desk offers a package of tools specifically designed to support companies, agents, and producers in making the best livestock insurance coverage decisions. Our tools support Livestock Risk Protection. 

LRP FAQs:

  • What is Livestock Risk Protection (LRP) insurance?
    LRP is an insurance program designed to insure against unexpected declines in a livestock producer’s revenue due to declining revenue from livestock sales. LRP is available for cattle and swine producers.
  • What does Ag Hedge Desk offer regarding LRP?
    Ag Hedge Desk offers a package of tools specifically designed to help users make the best decisions with LRP insurance. Our decision tool, automated quoting, visual reports of insured production, and market knowledge bring value to producers and agents alike. If you are a certified LRP crop insurance provider and are interested in learning more about the tools and services we provide, contact us for more information
  • Which commodities are used to calculate the LRP margin?
    The commodities used depend on the species of livestock insured. These futures markets are used to determine prices: Cattle: Live Cattle, Feeder Cattle and Corn futures market prices Swine: Lean Hogs, Soybean Meal, and Corn futures Dairy: Milk, Soybean Meal and Corn futures
  • How do I use LRP insurance?
    Type of livestock (Feeder cattle and swine only)
    • Feeder Cattle: LRP Feeder Cattle is split into two weight classes based on intended marketing weight. Weight 1 is for insuring cattle that LRP would be marketed between 100 and 600 pounds. Weight 2 is for cattle marketed between 600 and 900 pounds. For each of these weight classes, there are brahman, dairy, steers, heifers, and “unborn” classification of each of these.
      • Example: You intend to market dairy steers at 200 pounds that have not been born yet but you do own the pregnant cows that will produce these calves, you select “Unborn Dairy Weight 1” and select 2 hundredweights as the target weight.
    • Swine: No type specified or unborn
    How many week endorsement(s) to purchase. LRP is available up to 52 weeks out. The length of coverage available for each endorsements is 13, 17, 21, 26, 30, 39, 43, 47, or 52 weeks.
  • What volume of production should I insure?
    The number of head and the target weight per head.
  • How do I obtain LRP insurance?
    LGM is available for purchase from crop insurance agents certified to sell LGM insurance. LGM Swine and Dairy are available in the contiguous 48 states. LGM Cattle is available in 20 select states. For more information on obtaining coverage, contact an agent. If you would like assistance finding an agent we work with, contact us.
  • How often is LRP offered?
    LRP is offered daily (Monday-Friday). LRP prices and premiums are calculated by the LRP program administrators and published by the USDA Risk Management Agency. Coverage may be purchased from late afternoon until early the next morning.
  • Can I use Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM) Insurance at the same time?
  • No. You may only have one policy in effect per crop year.
  • Is there any way a producer can end up paying more than the premium for the insurance coverage?
  • No, the maximum amount that will be owed is the premium. There are no additional hidden costs or fees.
  • Is there a limit to how much coverage can be purchased under a LRP policy?
  • Yes, there are head limits by endorsement and crop year for LRP.

Consulting:

Additionally, insurance providers may be interested in our consulting services. Ag Hedge Desk Offers consulting at every level from producer up to commercials and corporations. Our consulting services are tailored to the customer’s needs, covering everything from risk assessments to trade execution. We also offer strategy modeling, risk management plans, reinsurance hedging, innovative solutions, and customer analytics. Let our consulting group help identify, analyze, and mitigate your risk. Our team is available for one on one consultations to see if we are the right fit for you business.

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