LRP: Livestock, Risk Protection

Livestock Risk Protection (LRP) provides your business with protection against declining livestock prices for fed cattle, feeder cattle, and swine. LRP is available year-round for ranchers who have an ownership share in eligible livestock. BENEFITS OF LRP Guaranteed price — no bid/ask spread Limited basis risk coverage — the aggregate cash price used better reflects the actual price received Any number of head can be covered, up to policy limits Numerous endorsement period options — producers can select the period that best fits their risk management plan Wider range of target weights than CME LRP is an insurance policy — it may be viewed more favorably by lenders than hedging or speculating with derivative products