Livestock Risk Protection (LRP) is federal insurance against a drop in cattle prices. It is run by USDA's Risk Management Agency (RMA) and sold by licensed livestock insurance agents.
It does not cover death, sickness or weight loss. It covers price only.
The idea in one sentence
You pick a coverage price for a group of cattle and a length of time. If the actual ending value at the end of that time is lower than your coverage price, LRP pays the difference.
- The actual ending value for feeder cattle is based on the CME Feeder Cattle Index, a weighted average of feeder cattle prices published by the Chicago Mercantile Exchange (CME).
- Prices, premium rates and actual ending values are posted daily on RMA's website.
Basic choices
- Length of coverage: 13, 17, 21, 26, 30, 34, 39, 43, 47 or 52 weeks. Pick an end date close to when you plan to sell. RMA says the period should end within 60 days of your target marketing date.
- Coverage price: RMA's fact sheet lists choices from 75% to 100% of the expected ending value. What's offered changes daily.
- Type and weight: steers, heifers, predominantly Brahman, predominantly dairy, and unborn calves. There are two weight groups: under 600 lb (1.0–5.99 cwt) and 600–1,000 lb.
- Head limits: up to 12,000 head per endorsement and 25,000 head per crop year. The crop year runs July 1–June 30.
How buying works
- Fill out a one-time application with an agent. You can do this any time.
- Coverage starts only when you buy a Specific Coverage Endorsement (SCE) for a group of cattle and RMA approves it.
- You can buy endorsements throughout the year, on days when coverage is offered.
- Premium is subsidized by the federal government. RMA's subsidy has been higher at lower coverage levels, with 35% at the highest coverage levels and 55% at the lowest. Beginning producers can get extra help. Ask your agent for today's rates.
Simple made-up example
- You insure 100 steers expected to weigh 7.5 cwt (750 lb), with a coverage price of $300/cwt.
- At the end date, the actual ending value is $280/cwt.
- The indemnity is about ($300 − $280) × 7.5 cwt × 100 head = $15,000, minus the premium you paid. Your own share of ownership and other policy terms also affect the result.
- If the ending value is $320, there's no payment. You paid the premium, and you sell your cattle at the higher market.
These numbers are for illustration only. They are not a price forecast.
Things to know before you buy
- Your local price can differ from the index. That difference is called "basis." LRP pays off the index, not your barn's sale.
- Selling early or late can affect a claim. There are rules about selling more than 60 days before the end date. Ask your agent.
- Unborn calves can be covered if you own the bred cows, with documentation rules.
What to do next
- Check RMA's daily LRP prices and rates page to see what coverage costs this week.
- Talk to a licensed livestock insurance agent. Use RMA's Agent Locator if you need one.
- Match the endorsement length to your realistic sale date.
Cownty shows USDA-reported prices at your barn so you can compare local prices with your coverage.
Cownty is an independent service, is not an insurance agent, and is not affiliated with USDA or RMA. This is general information, not insurance or financial advice.
See it for your county
Check your county
Every county, by state: Texas · Oklahoma · Kansas · New Mexico
Official sources
- RMA – Livestock Risk Protection Feeder Cattle fact sheet (June 2025)
- RMA – Livestock Risk Protection Handbook (FCIC-20010)
- RMA – Daily LRP coverage prices, rates and actual ending values
- RMA – PM-20-064, LRP subsidy and policy changes
- RMA – Agent Locator
Rules and dates checked against these pages on Oct 18, 2026. Information only, not legal, tax, insurance or financial advice: the agency decides. Not affiliated with USDA or any government agency.