Livestock Risk Protection
How do you handle risk in your ranching operation? Risk Management's Jo Lynne Seufer says there is now a new tool for you to use.
SEUFER: We have in the Risk Management Agency a Livestock Risk Protection program, LRP for short and it sure is gaining a lot of interest in all of Idaho, Oregon and Washington State. The participation data is growing particularly in our feeder cattle category which is out cow/calf operators.
She says interest in the LRP is gaining.
SEUFER: Because this is a Risk Management tool will protect the downside price risk for when a producer will market those feeder calves or steers. Everyone want to lock in those 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 what they will actually 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.
And Seufer explains how to sign up.
SEUFER: Producers can buy the LRP policy everyday, on a weekday, that the Chicago Mercantile Exchange is open and once they price those feeder calves then that producer can enter into a specific coverage endorsement. So there relatively is no self-closing date for this product.
That's today's Line On Agriculture. I'm Greg Martin on the Ag Information Network.