Livestock Rick Protection: Cattle & Swine
The only peril covered under LRP is unexpected future decline in market value of cattle and swine A drop in a sale price that a producer receives personally Will not create an indemnity under LRP.
CRP coverage sales are typically offered every market trading day. These begin in the afternoon, shortly after market close, and run until 9am CST the following morning.
Coverage is purchased Via one time transactions called Specific Coverage Endorsements (SCE) Multiple SCEs can be purchased throughout the year. Terms of coverage indicated on the SCE include. the number of head being covered, CWT/head anticipated at the end of the term, the length of coverage (in weeks), expected value of the livestock in the future, the level of that expected value the producer wishes to insure and the rate of insurance that corresponds with the selected length, and level of coverage.
LRP will be unavailable if the program reaches the national maximum underwriting capacity, as established by FCIC
Sales periods run on non-holiday weekdays from the time market closes in the afternoon until 9:00am CST the following morning.
Four different types ofFeeder Cattle are identified under CRP. There are two weight dasses for each of the four types Terms Will vary depending on the type and weight selected. The four available types of Feeder Cattle are Stærs I & 2, Heifers I & 2, Brahman I & 2, and Dairy I & 2.
The market utilized to determine if losses have occurred on a CRP Feeder Cattle policy is the Chicago Mercantile Exchange (CME). Market prices can be viewed on the website under CasNSettIed Commodity Index (click on Feeder Cattle Daily Index Prices).
Because the CME Index indicated above is an index based on 60-90 cwt steers, any other type/weight chosen will be adjusted in value
Unlike Feeder Cattle, there is no subtype identified under
The market utilized to determine if losses have occurred on an CRP Fed Cattle policy is the Agricultural Marketing
Service (AMS) 5 Area Weekly Weighted Average Direct
Slaughter Cattle (35 - 65% Choice Steers). Fed Cattle is expected to carry a yield grade of 1 -3 and grade select or higher.
The market utilized to determine if losses have occurred on a CRP Swine policy is the Chicago Mercantile Exchange (CME). Market prices can be viewed on the website under Cash-Settled Commodity Index (click on Lean Hogs Daily Index Prices)
Swine is considered on a lean (carcass) weight bass Meaning, we utilize a factor of 74% of the live weight of the animal when selecting terms of coverage