Livestock Risk Protection Program

Livestock Risk Protection Program

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.

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