The Livestock Risk Protection (LRP)
Livestock Risk Protection (LRP) is available for:

• Swine
• Fed Cattle
• Feeder Cattle

The LRP program addresses a crucial aspect of risk management for livestock producers- declining market prices- without restricting profit potential.
  The LRP Crop Year is July 1st through June 30th.  With no sales closing date and several different insurance periods, the LRP program makes it easy to ensure your policies will correspond with your marketing cycles.
  Coverage prices and rates change daily and are based on futures prices on the Chicago Mercantile Exchange.

The Livestock Gross Margin (LGM)
  The LGM provides protection against the loss of gross margin (market value of livestock minus feeder cattle and feed costs) on feeder (yearling and calf) cattle.  LGM covers the difference between the gross margin guarantee and the actual gross margin at the end of the 11-month insurance period.  The LGM insurance policy uses adjusted futures prices to determine the expected gross margin and the actual gross margin.  LGM does not insure against death loss or any other loss or damage to the producer's cattle.
  Your premium is calculated by a premium calculator program that determines the per head of cattle premium based on target marketings, expected gross margins for each period, and deductibles.  You may insure any amount of cattle that you own up to a limit of 5,000 head for any 11-month insurance period and a limit of 10,000 head per crop year.  Ownership of insured cattle must be certified by you, the producer, and may be subject to inspection and verification by ARMtech.

Livestock Gross Margin has 3 advantages over traditional options:

• Convenience: You can sign up for LGM for cattle twelve times per year and insure all of the cattle you expect to market over a rolling 11-month insurance period.  You do not have to decide on the mix of options to purchase, the strike price of the options, or the date of entry.
• Customization: The LGM policy can be tailored to any size farm.  Options covered fixed amounts of commodities and those amounts may be too large to be used in the risk management portfolio of some farms.
• Total Package Protection: LGM protects margin components (cattle price and feed cost) all in one package.

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