Livestock Risk Protection (LRP) is a type of insurance plan designed to help livestock producers manage price risk. Producers can purchase coverage that will pay out if the market price of their livestock drops below a certain level. This can help offset losses caused by price declines and provide financial stability for operations.
This policy does not cover any other peril except a change in price. For example, it does not cover mortality, condemnation, physical damage, disease, individual marketing decisions, or local price aberrations.
LRP insurance is available for several types of livestock, including cattle and swine. Producers have flexibility in the timing of the purchase, length of coverage, coverage level and the number of head of livestock they want to insure. The policy premium is subsidized.
Overall, the purpose of LRP insurance is to provide livestock producers with a risk management tool to manage price risk and protect their bottom line.
To learn more about the insurance products available for farm risk management, reach out to Chelsea Heatherington at Kingsgate Insurance.
Chelsea Heatherington, Farm & Ag Specialist
Call or Text: 515-302-8400