Changes have made LRP program more attractive to cattle producers
Recent changes to the USDA’s Livestock Risk Protection (LRP) insurance program have made it a much more attractive risk management tool for cattle producers, according to Brandon Willis with Utah-based Ranchers Insurance.
“If you’ve heard of LRP before and you thought, ‘nah, it’s not worth my time’, it probably wasn’t then. But I can tell you, it is now,” Willis says. “If you’re running your operations as a business, this is a program you should pay attention to.”
Willis encourages interested cow-calf producers not to wait until calves are on the ground.
“You want to be looking at this now if you’re a cow-calf producer because unborn calves can be insured,” he says. “So if the market in November-December-January-February gets to where you want it to be—and it might not be there today, I’ll admit that—but if it gets there, you might want to lock in a profit for next June-July-August-September.”
Among other changes, USDA increased LRP premium subsidies and moved the premium due dates to the end of the endorsement period.
Willis made his comments during a webinar sponsored by the national Extension Risk Management Education Program and USDA.