Livestock Risk Protection Program

I’m Lacy Gray with Washington Ag Today.

USDA’s Risk Management Agency’s Livestock Risk Protection Program, which provides protection against price declines, has been gaining a lot of interest recently in the Northwest. Risk Management Specialist Jo Lynne Seufer expounds.

SEUFER: In Idaho last year the number of head we insured was 962. Currently we’re insuring 3,132 head. For Oregon last year we insured 2,159 and this year, while we are a little bit down at 1,916 the dollar of liability coverage is still pretty high at $2.2 million. For Washington state last year we were only insuring about 996 head - right now we’re insuring 4,040 head.

Seufer explains the reason behind the increased participation in the LRP program.

SEUFER: Everyone wants to lock in that high prices that we have posted on the Chicago Mercantile Exchange right now, and with this tool they can lock that in - not based on actually what they will get for their actual steers, but have a price mechanism tool that will act as another risk management strategy in their entire risk management plan.

Seufer says there relatively is no sales closing date for this product.

SEUFER: Producers can buy the LRP policy every day on a week day that the Chicago Mercantile Exchange is open, and once they price those feeder calve prices then that producer can enter into a specific coverage endorsement.

For more information about LRP contact your local livestock insurance agent.

That’s Washington Ag Today.

I’m Lacy Gray on the Ag Information Network.