LRP Insurance — Livestock Risk Protection Explained
LRP insurance (Livestock Risk Protection) is a federally subsidized USDA program that protects cattle producers against a drop in market price. You buy a price floor for a set number of head over a set number of weeks; if the market ends below that floor, USDA pays the difference. This page covers how LRP insurance works, who qualifies, what it costs, and how it compares to the alternatives.
Price your own LRP insurance
Free, no signup — pulls tonight's published USDA rates and returns your producer premium per head in seconds.
Open the LRP Calculator →How LRP Insurance Works
- Pick your class and head count. Feeder Cattle (steers, heifers, Brahman, dairy, by weight class) or Fed Cattle (steers, heifers). Enter head and target weight in hundredweight.
- Pick an endorsement length. 13 to 52 weeks. The end date should land close to when you actually plan to market the cattle.
- Pick a coverage level. 70% to 100% of the Expected Ending Value. Higher coverage means a higher floor and a higher premium, with a smaller subsidy percentage.
- Buy before 8:25 a.m. Central. Rates publish each weeknight evening and expire the next morning. Your agent submits the Specific Coverage Endorsement (SCE).
- At the end date, USDA compares. If the Actual Ending Value is below your coverage price, you receive an indemnity of the difference × insured hundredweight. If it's above, you keep the market price and the premium is spent.
See today's LRP rates for the actual numbers USDA published tonight, and LRP prices per head for cost.
What LRP Insurance Covers
| Covered | Not covered |
|---|---|
| A decline in the national market price index | Death loss, illness or injury |
| Any head count, no minimum | Weight or performance shortfalls |
| Feeder and fed cattle, swine and lamb | Your local basis vs. the national index |
| Endorsements from 13 to 52 weeks | Feed cost or input price increases |
Eligibility and Limits
- You must own the livestock and have a substantial beneficial interest in them.
- Available in all 50 states through USDA-approved crop insurance agents (AIPs).
- No minimum head count; annual caps of 25,000 feeder cattle and 12,000 fed cattle.
- Premium is billed after the endorsement ends — no money down at purchase, unlike CME options margin.
- Beginning Farmer/Rancher and Veteran Farmer/Rancher producers earn a 10–15% bonus subsidy via form CCC-860.
What LRP Insurance Costs
USDA subsidizes 35–55% of the gross premium depending on the coverage level you pick:
- 95.00–100% coverage → 35% subsidy
- 90.00–94.99% → 40% subsidy
- 85.00–89.99% → 45% subsidy
- 80.00–84.99% → 50% subsidy
- 70.00–79.99% → 55% subsidy
The dollar cost changes nightly with futures volatility. Tonight's published producer cost per head is on the LRP pricing page.
LRP vs. Other Livestock Insurance
| Program | Protects against | Best for |
|---|---|---|
| LRP | Falling cattle market price | Anyone selling cattle on a known date |
| LGM | Narrowing margin (price minus feed cost) | Feeders exposed to feed-cost swings |
| PRF | Below-normal rainfall on pasture | Cow-calf and grazing operations |
| CME put options | Falling futures price | Large lots, traders with a brokerage account |
A deeper side-by-side is on Livestock Insurance vs. LRP.
How to Buy LRP Insurance
- Price the endorsement yourself so you know what to expect — use the calculator.
- Find a USDA-approved crop insurance agent (RMA's Agent Locator lists every AIP by state).
- Sign a one-time application; it stays in force year to year.
- Call or email your agent with the class, head, weight, endorsement length and coverage level before 8:25 a.m. Central to bind that night's rates.
LRP Insurance FAQ
What is LRP insurance?
LRP (Livestock Risk Protection) insurance is a federally subsidized USDA Risk Management Agency program that lets cattle, swine and lamb producers insure against a decline in market price. You choose a coverage price floor; if the USDA-published Actual Ending Value falls below that floor at the end of your endorsement, USDA pays the difference. It insures price, not death loss, weight or individual animals.
How does LRP insurance work?
You pick a commodity and class, a head count and target weight, an endorsement length (13 to 52 weeks) and a coverage level (70% to 100% of the expected ending value). USDA publishes a coverage price and premium rate each weeknight. You pay the producer premium — gross premium minus a 35–55% federal subsidy — and if prices drop below your coverage price by the end date, USDA pays an indemnity per hundredweight insured.
Who is eligible for LRP insurance?
Any U.S. producer who owns the insured livestock and has a substantial beneficial interest in them. You buy through a USDA-approved crop insurance agent (AIP). There is no minimum head count, and coverage is available in all 50 states. Annual caps apply: 25,000 head of feeder cattle and 12,000 head of fed cattle per crop year.
How much does LRP insurance cost?
Producer premium depends on coverage level, endorsement length and current futures volatility. Recent quotes commonly land in the low tens of dollars per head after the federal subsidy. Premiums are not due until the endorsement ends, which is a meaningful cash-flow advantage over CME put options.
Is LRP insurance worth it?
LRP is most useful when you have cattle you must sell on a known date and cannot absorb a sharp price decline. It converts an unknown downside into a known, subsidized cost. It does not lock in profit, does not cover death loss or performance, and the premium is spent whether or not prices fall — the same trade-off as any insurance.
When can I buy LRP insurance?
Sales open each weeknight when RMA publishes rates (typically around 4:00 p.m. Central, Sunday through Thursday) and close the next business morning at 8:25 a.m. Central. There is no sale on weekends or USDA holidays.
Educational information only — not an official quote and not affiliated with USDA. Final premiums and coverage must be obtained from a USDA-approved crop insurance agent.