Price protection to be featured at Feedlot Forum 2025
LRP can establish a floor selling price for cattle.
12/11/24
ORANGE CITY, Iowa ― There is a lot of financial risk in feeding cattle – high-priced feeder cattle, variable interest rates, and volatility in market animal price. Iowa State University extension beef specialist Beth Doran said it's important for producers to understand how they can protect their investment.
“Producers have $2000 invested in the purchase of the feeder animal. When you add the cost of feed, bedding, labor, and interest, the total cost of production is hovering around $2700 per animal,” she said.
Hence, this year’s Feedlot Forum 2025 features Zach Tindall discussing the usability and basics of two USDA risk management tools: Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM). As vice president of commodities with Producers Livestock, he's been instrumental in protecting producer profitability through his trading and hedging expertise and risk management consulting.
The two programs are different. LRP is a USDA price insurance policy that protects cattle producers from catastrophic declines in market price, and LGM is a federal insurance policy that protects against losses in gross margin for cattle. Tindall will discuss changes in both programs that have increased their usability.
Feedlot Forum 2025, which is Jan. 14 in Sioux Center, includes four other presentations centered around cattle feeding and a trade show with more than 20 agricultural industry professionals.
A flyer and registration form are available online at www.extension.iastate.edu/sioux/feedlot-forum. Registration ($25 per adult or $10 per student) is due Jan. 6.
For more information, contact Doran at 712-737-4230 or doranb@iastate.edu.
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The Iowa Beef Center at Iowa State University was established in 1996 with the goal of supporting the growth and vitality of the state’s beef cattle industry. It comprises faculty and staff from Iowa State University Extension and Outreach, College of Agriculture and Life Sciences and College of Veterinary Medicine, and works to develop and deliver the latest research-based information regarding the beef cattle industry. For more information about IBC, visit www.iowabeefcenter.org.
Contact:
Beth Doran, ISU Extension and Outreach beef specialist, 712-737-4230, doranb@iastate.edu
