Swine Insurance

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.

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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

Daily Offerings

  • Coverage updates based on board prices

  • Offered 13-52 weeks out

Customizable Coverage

  • Producers select:

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

Settles to Cash

  • 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?

  • Livestock insurance program subsidized by the USDA’s Risk Management Agency.

  • 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 specific the exact head amount they would like to cover.

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


When is LRP offered?

  • LRP is offered every afternoon at approximately 3:30 PM CST. At this time, 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.


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.

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.).

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