Livestock Risk Protection plan offers risk management alternatives for cattle producers
Zach Tindall.
3/24/25
AMES, Iowa – Cattle producers looking for tools to add to their risk management plans might want to consider Livestock Risk Protection. Just as the name says, LRP is price protection for livestock, not insurance against death, sickness, or anything else. Zach Tindall, Vice-President of Commodities - Producers Livestock, said the downside risk protection offered by the program can be a beneficial addition, especially because it leaves the top side of the market open.
Tindall, who spoke at the 2025 Feedlot Forum in northwest Iowa, said with current market highs and near highs for feeder cattle and live cattle, using LRP as a guarantee against lower prices is worth thinking about now.
“The money spent per head is a small percentage compared to the overall price of those animals,” he said. “With the volatility within the cattle market, we will see big swings higher and lower, and this insurance gives peace of mind to lower markets.”
Those not familiar with LRP might find it easier to compare with a Chicago Mercantile Exchange put option. A livestock producer can choose a time period, coverage price, and cost that fits them or satisfies the protection they are looking for, and to protect a specific number of head and weight, Tindall explained.
Unlike the CME, the LRP premium isn’t due until the end of the endorsement, the producer gets to build and customize the size of their risk protection, and it gives smaller producers and especially the cow-calf sector of the industry a better way to protect their livestock, he said. Most of the time the LRP for feeder cattle will be cheaper per cwt than a put option.
If you’re interested in learning more about the coverage, including how it works, what it does, and how it operates, there’s a lot of information available online. However, Tindall cautioned that the guidelines change a little every year and outdated details don’t always get removed in a timely manner. And although the USDA’s Risk Management Agency has the official handbook for the program, speaking with someone who sells this insurance is best.
“A lot of the ins and outs of the program are learned by using the programs and going through them,” Tindall said. “At Producers Livestock, we have information we can provide, and we send out quotes daily. If someone wants to know what could have happened if they had LPR coverage in place, we have coverage pricing, dates, and ending values to help with that comparison.”
He encouraged producers to contact him directly with questions and program detail requests for LRP and for the Livestock Gross Margin (LGM) program.
“I’m happy to answer questions and can provide information on how LRP and/or LGM works. Also, I can get them signed up so they can place coverage on livestock and receive daily quotes,” he said. “Call me at 712-541-9992 or email me at ztindall@plmcoop.com.”
-30-
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:
Sherry Hoyer, Iowa Beef Center, 515-294-4496, shoyer@iastate.edu
