Livestock Risk Protection (LRP)
Livestock Risk Protection is designed to provide 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 and found exclusively on the daily Actuarial Documents, and is applicable only for the date of sale.
Coverage is determined by taking the number of livestock to be marketed times the market weight times the coverage price times the insured share. Coverage prices range from 70 to 100 percent of the expected ending value. Coverage is not available for purchase on dates that would have an effective date of a Federal or a market holiday or if the website or premium calculator is not operational or FCIC halts sales.
Livestock Risk Protection - 2023 CY Changes
Livestock Risk Protection 2023 Crop Year changes (CLICK HERE to review the Product Management Bulletin: PM-22-029) include:
- Increase head limits:
- Fed Cattle: 12,000 head per endorsement and 25,000 head per crop year.
- Feeder Cattle: 12,000 head per endorsement and 25,000 head per crop year.
- Swine: 70,000 head per endorsement and 750,000 head per crop year.
- Allow an insured to have both an LRP and Livestock Gross Margin (LGM) policy; however, an insured may not insure the same class of livestock with the same end month or have the same insured livestock insured under multiple policies.
- Modify the premium offset language to allow an insured the choice to receive indemnities without a reduction to offset premium on any endorsements that have not ended.
- Clarify head limits are tracked by substantial beneficial interest (SBI).
- Extend the termination date from June 30 to August 31.
- Require proof of ownership before indemnity is issued.
- Clarify that livestock must be marketable by the end of the Supplemental Coverage Endorsement (SCE).
- Require insurance companies to pay indemnities within 30 days. Previously, insurance companies had 60 days to pay indemnities following the receipt of the claim form.
- Allow unborn swine coverage for operations with multiple entity structures.
- Modify the endorsement length for swine to a minimum of 30 weeks for unborn swine and a maximum of 30 weeks for all other swine.
This information is intended for informational purposes only. Nothing contained herein can or should be interpreted to take precedence over policy language, Federal Crop Insurance Corporation/Risk Management Agency regulation, and Underwriting or Loss Adjustment rules.