Insurance Coverage for Hog, Pork & Swine

CIH offers insurance protection for your swine business against unexpected drops in prices. Our consultative approach to swine insurance means we work closely with you to find the right coverage to insulate you from volatility, uncertainty and margin compression.

Livestock Risk Protection (LRP)
LRP provides livestock producers with protection against price declines in future livestock sales.

Livestock Gross Margin (LGM)
LGM provides protection against the declines in gross margins of livestock producers.

CONTACT HOG TEAM
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Livestock Risk Protection (LRP) – Swine

Price Protection

  • Protects against price declines of future hog sales

  • Maintain flexibility to participate in higher prices

Subsidized Premiums

  • Protection cost subsidized anywhere from 35% to 55%

  • Any owed premium not due until after coverage expiration

  • Government subsidy reduces producer costs

Daily Offerings

  • Coverage updates based on board prices

  • Offered 13-52 weeks out

  • Updated every trading day based on CME lean hog futures

Customizable Terms

  • Producers select:

    • Protection date
    • Protection price
    • Specific number of head and weight

Cash Settlement

  • Coverage settles daily into the CME Lean Hog Index

  • Effectively mitigates most producers' basis risk

CIH Tools

  • LRP Calculator

  • Daily Summary

  • Weekly Newsletter

What is LRP?

  • Premiums are subsidized anywhere between 35-55% based on selected coverage level.

  • Program offers producers with protection against declines in their future livestock sales. Producers select specific sales dates for their coverage and choose from 10 different offered protection prices. For each purchase, producers specify the exact head amount they would like to cover.

  • Premiums are subsidized anywhere between 35-55% based on selected coverage level.

  • CIH offers easy-to-understand hog insurance coverage that secures your downside while also preserving the upside if prices rally.

CONTACT HOG TEAM

When is LRP offered?

  • LRP is offered most afternoons. At this time, insurance coverage dates and prices are released and based off that day’s CME Futures settlement.

  • The specific coverage dates, prices, and premiums are available for purchase until 8:25 AM CST the following morning.

CONTACT HOG TEAM

How does LRP settle?

  • LRP coverage settles against the CME Lean Hog Index on your coverage end date.

  • On the end date, indemnity is paid to the producer if coverage price is greater than CME LH Index.

  • On the end date, premium is due if CME LH Index is greater than the coverage price.

  • Indemnities and premiums are calculated based on market performance.

The CIH Advantage: Integrated Swine Risk Solutions

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. We do a lot more than just offer hog insurance — we help you find the right strategy to protect your interests.

  • 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.).

  • Ongoing consulting to adjust your coverage as market conditions change.

  • Access to margin analysis tools and real-time risk dashboards.

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Market information offered by Commodity & Ingredient Hedging, LLC, a commodity trading advisor registered with the CFTC and a Member of NFA. Insurance services provided by CIH Insurance Services, LLC. The information contained in this publication is taken from sources believed to be reliable, but is not guaranteed by Commodity & Ingredient Hedging, LLC, nor any affiliates, as to accuracy or completeness, and is intended for purposes of information and education only. Nothing therein should be considered as a trading recommendation by Commodity & Ingredient Hedging, LLC. There is a risk of loss in futures and option trading. Past performance is not indicative of future results.

Issuance of insurance coverage is subject to underwriting review and approval. Coverage not available in all states. Please see the policy for the full terms, conditions and exclusions. CIH Insurance Services, LLC is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Coverage scenarios are hypothetical and shown for illustrative purposes only. Coverage is dependent on the actual facts and circumstances giving rise to a claim. CIH is an equal opportunity employer and provider.© CIH. All rights reserved.

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