Cattle Prices Drop. Feed Costs Rise. Your Margin Is Protected.
Livestock Risk Protection (LRP) sets a price floor for your cattle and hogs. Livestock Gross Margin (LGM) protects your profit margin when feed costs spike. Both are federally subsidized — giving you affordable protection against the market's worst surprises.
Markets Are Volatile. Your Revenue Doesn't Have to Be.
Livestock prices swing constantly. A strong market today can drop sharply by the time your cattle are ready to sell. Feed costs can spike without warning, squeezing your profit margin even when cattle prices hold steady. For producers who depend on the cash market, one bad price move can turn a profitable year into a loss.
LRP and LGM are two USDA Risk Management Agency programs that give livestock producers affordable, federally subsidized price and margin protection. LRP acts like a price floor — you receive a payment if market prices fall below your selected coverage price. LGM protects your gross margin — the difference between livestock revenue and feed costs — covering you when either side of the equation moves against you.
Whether you raise feeder cattle, finish fed cattle, run hogs, or operate a dairy — LRP and LGM give you a proven, subsidized way to protect your revenue and margin against market downturns.
Get a Livestock Insurance Quote →Can your operation absorb a major price drop?
LRP sets a guaranteed minimum price. LGM protects your profit margin. Both are federally subsidized. Let us help you pick the right tool for your livestock operation.
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Livestock Risk Protection (LRP) & Livestock Gross Margin (LGM) Through Brawner
Two distinct USDA programs — LRP protects against price declines, LGM protects against margin loss. Here's how each works.
LRP — Feeder Cattle
Sets a guaranteed minimum price for feeder cattle (steers, heifers, brahman, dairy) in two weight classes: 100–600 lbs and 600–900 lbs. Coverage periods from 13 to 52 weeks. Indemnity paid when actual ending value falls below your coverage price.
LRP — Fed Cattle
Protects fed cattle (finished steers and heifers) against price declines at market time. Coverage based on live cattle futures. Sales records are required to receive an indemnity for fed cattle endorsements.
LRP — Swine
Sets a price floor for market hogs (born and unborn) weighing 140–260 lbs lean/dressed weight. Coverage periods from 13 to 52 weeks for unborn, 13 to 30 weeks for born swine. Based on lean hog futures prices.
LGM — Cattle
Protects gross margin — the market value of fed cattle minus feeder cattle purchase price and feed costs (corn). Covers both price drops and feed cost spikes in a single policy. Available for calf-finishing and yearling-finishing operations.
LGM — Swine
Protects the gross margin for hog finishing operations — covering both hog price declines and rising feed costs (corn and soybean meal). Deductible from $0 to $20/head in $2 increments. Available in all 48 contiguous states.
LGM — Dairy
Protects dairy producers' gross margin — the difference between milk revenue and feed costs (corn and soybean meal). Covers declining milk prices and rising feed costs in a single policy for dairy cattle operations.
Daily Pricing (LRP)
LRP coverage prices and premium rates are updated each business day based on CME futures market data. You can purchase endorsements on weekdays from 3:30 PM to 8:25 AM Central time. Premiums are due at the end of the coverage period, not upfront.
Unborn Livestock Coverage
Both LRP and LGM allow you to insure unborn livestock — calves or pigs not yet born but expected from pregnant cows or sows you own. This lets you lock in price or margin protection well before your animals reach market weight.
LRP or LGM? We'll help you decide.
We assess your operation — whether you raise your own feed or buy it, your marketing timeline, and your primary risk — to recommend the right program.
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