Livestock Risk Protection (LRP) protects your investment should prices drop before your livestock gets to market while preserving your upside potential. LRP is similar to a put option, allowing producers to establish a floor price for protection while leaving upside price potential open. Unlike market contracts and options, it does not require a margin account or broker, it is closer to the actual ending value of the livestock and is based on cash market index price rather than the futures market. This federally-sponsored program insures against declining market prices (based on USDA’ Agricultural market Services).
LRP Basic Provisions
LRP – Feeder Cattle
LRP Feeder Cattle Endorsement– Fact Sheets
LRP Feeder Cattle Premium Calculation
LRP Feeder Cattle Underwriting Rules 1.20.2021
LRP – Fed Cattle
LRP Fed Cattle Premium Calculation
LRP ANNOUNCEMENT
Suspension of Livestock Risk Protection Basic Provisions
60-Day Ownership Requirement Due to Severe Drought | 05.19.22
Understanding CME Feeder Cattle Index® (PDF)
Accessing CME Feeder Cattle Index Information:
CME now requires that you set up an account in order to access Cash Settled Commodity Prices
- Get a new free account here:
- Check your email and activate your account by clicking the link
- You will be directed to a log-in page
- Sign in
- Go here to access pricing once you have created an account
- You will download a zip file. Click on the zip file and the pricing will open in Excel.