Agricultural Economics Department
Date of this Version
7-20-2022
Citation
Cornhusker Economics (July 20, 2022)
Agricultural Economics, University of Nebraska-Lincoln
Abstract
When used as a regular part of a market risk management plan, livestock risk protection (LRP) insurance can help protect profits in years where markets turn for the worse. The recent changes to the program have made LRP insurance more appealing to cattle producers and sales of LRP have subsequently increased dramatically. Strong price increases may make LRP unnecessary, but it is difficult to predict when the price increases will end. LRP insurance is a safety net, reducing downside price risk by providing a floor on national price expectations while also allowing producers to take advantage of higher national prices if they occur.
This material is based upon work supported by USDA/NIFA under Award Number 2018-70027-28586.
Included in
Agribusiness Commons, Agricultural Economics Commons, Beef Science Commons, Dairy Science Commons, Entrepreneurial and Small Business Operations Commons, Insurance Commons