Livestock Risk Protection

Livestock Risk Protection (LRP) is a federally reinsured livestock product that provides price protection on fed cattle, feeder cattle, and swine against a price decline during the policy coverage period. LRP is priced and available for sale continuously throughout the year. Coverage is flexible and the premiums to establish floors are subsidized.

There have been significant changes to the 2021 (current) crop year increasing subsidy levels and raising the number of insurable animals. Because of these changes, CIH feels producers should evaluate how it could benefit their operation.

CIH offers this government-subsidized insurance program, through its affiliate CIH Insurance Services, to swine, feeder and fed cattle producers. Call us today to discuss how it can fit into your risk management needs.

  • For swine, call Brendan at 312-596-7734
  • For feeder and fed cattle, call Adam at 773-220-8778

LRP Advantages

  • Coverage prices and endorsement periods make it customizable
  • Subsidized premiums that are due at end of the period
  • Can insure a specific number of livestock, from one head up to the insurance limit
  • No margin calls or broker fees
  • Easy to utilize as part of comprehensive risk management plan

LRP at CIH

CIH has been working with agriculture producers since 1999 helping them manage their risk using futures, options, and cash contracts. With the new changes to the LRP program, CIH has built out a full suite of LRP specific tools to quickly price LRP for our customers and compare vs futures and options alternatives. CIH is using that analysis, along with an understanding of cattle and hog specific seasonality and market trends, to help our clients determine if and when LRP coverage is in their best interest.

Give us a call today to learn more about the LRP program and discuss how it can fit into your operation’s risk management strategy.

Livestock Class Details

SWINE
Insurance
  • Program to insure producers against declining market prices
  • Producers choose from different prices levels and time periods for coverage (13-26 weeks)
Subsidized Premium
  • Subsidy based on the chosen coverage level and ranges 35-55%
  • Premium is paid at the end of the contract and based on coverage price and rate from RMA
Indemnity Payment
  • Indemnity paid if Coverage Price > Actual End Price (CME Index at end date)
  • Ending price based on CME Index, Coverage Price based on futures
Coverage Prices & Rates
  • Prices and rates are released in the afternoons by RMA
  • Coverage prices are based on previous market close, but coverage can be purchased up to 30 minutes after the next open (9 AM CST)
FEEDER CATTLE
Insurance
  • Program to insure producers against declining market prices
  • Producers choose from different prices levels and time periods for coverage (13-52 weeks)
Subsidized Premium
  • Subsidy based on the chosen coverage level and ranges 35-55%
  • Premium is paid at the end of the contract and based on coverage price and rate from RMA
Indemnity Payment
  • Indemnity paid if coverage price > ending price
  • Ending price based on FC Index, coverage price based on futures
Coverage Prices & Rates
  • Prices and rates are released in the afternoons by RMA
  • Coverage prices are based on previous market close, but coverage can be purchased up to 30 minutes after the next open (9 AM CST)
FED CATTLE
Insurance
  • Program to insure producers against declining market prices
  • Producers choose from different prices levels and time periods for coverage (13-52 weeks)
Subsidized Premium
  • Subsidy based on the chosen coverage level and ranges 35-55%
  • Premium is paid at the end of the contract and based on coverage price and rate from RMA
Indemnity Payment
  • Indemnity paid if coverage price > ending price
  • Ending price based on cash, coverage price based on futures
Coverage Prices & Rates
  • Prices and rates are released in the afternoons by RMA
  • Coverage prices are based on previous market close, but coverage can be purchased up to 30 minutes after the next open (9 AM CST)

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