About LRP Insurance
Livestock Risk Protection (LRP) is a federally-subsidized insurance product administered by the USDA Risk Management Agency (RMA). It pays an indemnity when the national Actual Ending Value of a covered livestock class falls below the producer's selected Coverage Price.
How LRP Insurance Works
LRP is a federally subsidized price-floor insurance product administered by USDA. You insure a target weight of cattle for an endorsement length between 13 and 52 weeks. If the national Actual Ending Value at the end of your endorsement is below your selected Coverage Price, RMA pays you the difference times your insured weight. There is no claim to file — payment is automatic.
The federal government pays a portion of your premium as a subsidy. The subsidy rate ranges from 35% to 55% depending on the coverage level you select: higher coverage means more protection but a smaller subsidy percentage. Beginning Farmer/Rancher (BFR) and Veteran Farmer/Rancher (VFR) producers get an additional 10% to 15% subsidy on top of the base.
How to Get an LRP Quote
- Pick your state — coverage prices vary by region.
- Pick your commodity: Feeder Cattle (calves & yearlings) or Fed Cattle (finished).
- Pick the class (e.g. Steers Weight 1, Steers Weight 2, Heifers, Predominantly Brahman, Predominantly Dairy).
- Enter head count and target weight (cwt per head at end of endorsement).
- Choose an endorsement length (13–52 weeks) — match it to when you plan to market.
- Choose a coverage level (70%–100% of Expected Ending Value).
- If you qualify, mark yourself as BFR or VFR for the bonus subsidy.
The calculator shows your coverage price, total liability, gross premium, federal subsidy, your out-of-pocket premium per head, and an indemnity scenario if prices drop. You can also compare endorsement lengths and coverage levels side by side to find the cheapest floor that protects your break-even.
Who Should Use LRP?
LRP works for cow-calf operators, backgrounders, stockers, and feedlots that want a simple, head-by-head price floor without the complexity of futures or options. Unlike CME futures contracts, LRP doesn't require margin, doesn't require a brokerage account, and the federal subsidy materially lowers your cost of protection. The trade-off: endorsements are binding once purchased and the indemnity is based on the national Actual Ending Value, not your local cash price.
Subsidy schedule
| Coverage level | Federal subsidy |
|---|---|
| 95% – 100% | 35% |
| 90% – <95% | 40% |
| 85% – <90% | 45% |
| 80% – <85% | 50% |
| 70% – <80% | 55% |