Where are these livestock prices going? If only we knew! But one thing we do know is by purchasing Livestock Risk Protection you can ease at least some of the anxiety. LRP is a way to protect your cattle investment against a decline in market. The Home Agency sells a large amount of it. Our agents key from their homes in the agents because the government quotes are published around 4:00 in the afternoon and are only good until 9:00 the next morning. Some places don’t want to work these hours but we do! So pick up the phone and tell us how many head of cattle you will be marketing, what month you normally sell and what they will weigh at that time. We’ll find the endorsement length, coverage price, and rate that best suits your plan.
LRP is similar to crop insurance in that it is sold at coverage levels and it is government subsidized 13%. When your contract reaches its end date, the Chicago Mercantile Exchange sends out a weighted average index. This is based on sale barns throughout the Midwest (not just your local market). If the index falls below your contracts coverage price, you will be paid the difference. Price Adjusted Factors apply. If the index is higher than your coverage price, your policy expires worthless. But this often means you received a good price at your sale barn. It’s as easy as that! This is like putting a price floor on your feeder cattle. Your banker likes it and you sleep better. This example represented feeders but LRP is available for fed cattle, swine & lamb as well. It doesn’t hurt to call & get a quote over the phone at no obligation.
So call us here at home …The Home Agency that is! By phone at 888-785-3077 or through the Contact Us form.