Livestock Risk Protection
Worried about where the livestock prices might be going? By purchasing Livestock Risk Protection you can protect your cattle investment against a decline in the market. LRP protects producers if the national cash price falls below the 'trigger' level set in their insurance coverage. LRP is sold on a coverage level basis and is government subsidized 13%. At the end of your contract the Chicago Mercantile Exchange sends out a weighted average index, if this index is less then your contract coverage price you will be paid the difference. Everyday at 4:00PM the market prices are published.