Cattle Insurance

Livestock Risk Protection (LRP)
LRP provides coverage against market price declines.

Pasture, Rangeland and Forage (PRF)
PRF is a subsidized insurance plan designed to offset the cost of rising feed expenses due to lack of precipitation.

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Livestock Risk Protection (LRP) – Cattle

Price Protection

  • Insure against deciling market prices

  • Maintain flexibility to higher prices

Subsidized Premiums

  • 35-55% based on coverage

  • Premiums due at the end of coverage

Daily Offerings

  • Coverage updates based on board prices

  • Offered 13-52 weeks out

Customizable Policy

  • Choice of coverage price and length of coverage

  • Endorse specific number of head and weight

Settles to Cash

  • Settles to 5 Area Cash or Feeder Cattle Index

  • Eliminates basis risk of futures vs. cash

CIH Tools

  • LRP Calculator

  • Daily Summary

  • Weekly Newsletter

What is LRP?

  • Subsidized program to insure producers against declining market prices. Producers choose from different price levels and periods for coverage (13-52 weeks). For each endorsement, producers can choose a specific number of head to cover at a specific weight.

  • Subsidies range from 35-55% of the RMA premium and are based on coverage level.


When is LRP offered?

  • LRP is offered every trading day. Coverage prices are released every afternoon and based on the previous futures market close. Coverage can be purchased until 8:25 AM CT the next day.

  • Expiration dates are offered each month and are not tied to live cattle or feeder cattle contract months.


How does LRP settle?

  • LRP settles to cash (5 Area cash for fed cattle, Feeder Cattle Index for feeder cattle).

  • Indemnity is paid if coverage price is greater than ending price.

  • Premium is due at the end of the endorsement and based on coverage price and rate from RMA.

Any head requirements/limits?

  • No head minimums, but maximum 25,000 head for feeders and 25,000 for live cattle.

What’s the CIH advantage?

CIH considers LRP a risk management tool to use alongside a broader risk strategy. Using our data and analysis tools, we help integrate LRP into your overall risk management plan.

  • Quoting tools to help you quickly access updated LRP coverage levels and prices.

  • Daily analysis reports to compare LRP coverage against historical seasonals and basis levels.

  • Software to incorporate LRP positions with other hedge positions (futures, options, cash contracts, etc.).

Pasture, Rangeland, and Forage Insurance (PRF)

The Pasture, Rangeland, and Forage insurance was designed to help protect a producer’s operation from the risks of forage loss due to the lack of precipitation.

  • Subsidized premiums make the program affordable.

  • Allows for protection of up to 90% of average rainfall for grass or hay land.

  • Easy to manage, no loss claims to file.

CIH proprietary PRF analysis tools inform your coverage decisions. Contact us for a customized quote today.


About the Program

The Risk Management Agency’s (RMA) Pasture, Rangeland, Forage (PRF) Pilot Insurance Program is designed to provide insurance coverage on pasture, rangeland, or forage acres. The PRF program utilizes a rainfall index to determine precipitation for coverage purposes and does not measure production or loss of products themselves. The Rainfall Index uses National Oceanic and Atmospheric Administration Climate Prediction Center (NOAA CPC) data, which utilizes a grid system to determine precipitation amounts within an area. Each grid is 0.25 degrees in latitude by 0.25 degrees in longitude, which translates to approximately 17 by 17 miles at the equator. Acres will be assigned to one or more grids based on the location to be insured.

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