herd of cows grazing in a field

Protect Your Livestock Operation from Market Price Drops

Livestock producers know how quickly market prices can change. When national cattle or swine prices drop, even small declines can have a big impact on your bottom line. Livestock Revenue Protection (LRP) helps manage that risk by providing insurance against unexpected decreases in national market prices.

At Foothills Insurance, we help cattle and swine producers across North Carolina, South Carolina, Virginia, and Tennessee understand how LRP coverage works and how to tailor it to their operation.

How Livestock Revenue Protection Works

LRP is a price insurance program for cattle and swine. It’s designed to protect your revenue when Chicago Mercantile Exchange (CME) prices fall during your coverage period.

Here’s how it works:

  • Choose how many cows or swine to insure.

  • Select a coverage period that ends near your planned market date.

  • Coverage prices are based on daily CME published prices.

  • If the CME price at the end of your coverage period is lower than your insured coverage price, you receive an indemnity payment for the difference.

  • The actual price you sell for doesn’t affect your claim since coverage is tied to national (not local) market prices.

While LRP does not insure local market fluctuations, national price changes usually mirror local trends, making it an effective way to offset price risk.

LRP Coverage Options

Coverage options vary based on your operation and marketing timeline:

  • Feeder Cattle & Fed Cattle: 13 to 52-week coverage options available.

  • Swine: Coverage terms align with your planned marketing dates.

Each policy can be customized to match your production cycle, risk tolerance, and price objectives.


Why LRP Matters for Livestock Producers

Market prices are influenced by factors beyond a producer’s control such as global demand, feed costs, weather, and trade conditions. When these forces drive prices down, profit margins can quickly shrink.

Livestock Revenue Protection gives producers confidence by locking in a price floor for their livestock. This doesn’t guarantee profit, but it helps protect your investment and stabilize your income even during volatile market conditions.

Benefits of Livestock Revenue Protection

  • Protects against national market price declines

  • Backed by CME daily pricing for accuracy and transparency

  • Flexible endorsement periods and coverage levels

  • Available for cattle and swine operations of all sizes

  • Federally subsidized premiums through the USDA’s Risk Management Agency

Partner with Foothills Insurance

At Foothills Insurance, we specialize in farm and livestock insurance solutions that help producers manage financial risk with confidence. Our experienced agents will:

  • Review available coverage levels and rates

  • Help you select the right endorsement period

  • Explain how LRP can complement your existing insurance

  • Keep you informed of CME price changes and policy updates

Contact Foothills Insurance today to learn how Livestock Revenue Protection can safeguard your cattle or swine operation against unpredictable market swings.

Livestock Revenue Protection FAQs

  • LRP is a federally subsidized insurance program that protects cattle and swine producers against declines in national market prices as published by the Chicago Mercantile Exchange (CME).

  • No. LRP is based solely on national CME prices. However, national and local price trends often move together, so LRP provides meaningful protection for most producers.

  • Coverage periods vary depending on your livestock type and marketing timeline. Feeder and fed cattle coverage can range from 13 to 52 weeks, while swine coverage aligns with your marketing plans.

  • A payment is made when the CME price at the end of your coverage period is lower than the insured coverage price you selected.

  • Any eligible producer of cattle or swine in the United States can purchase LRP coverage through an approved insurance provider like Foothills Insurance.