Agricultural Economics Department


Date of this Version

July 2005


Published in Cornhusker Economics, 07/27/2005. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska–Lincoln.


Livestock Risk Protection Insurance (LRP) is a pilot program from the USDA-Risk Management Agency (RMA) that provides minimum price protection for fed cattle, feeder cattle and swine producers. The program works like a put option in that a minimum price is established, but if prices increase producers can benefit from the increase. Producers pay a premium in exchange for this price insurance, which is available from licensed crop insurance agents.