Record-high cattle prices are creating strong revenue opportunities but also increasing financial exposure for cattle operations, according to the article. K-State Beef Cattle Institute experts featured in the discussion emphasize that today’s market conditions make risk management more important, particularly as uncertainty around weather, herd rebuilding, feed costs and price volatility continues. One key focus is understanding the local market “basis,” or the difference between futures prices and local cash prices, to help support more informed marketing decisions.

Livestock Risk Protection (LRP) insurance is one option ranchers may consider to help protect against downside price risk while maintaining upside opportunity if markets continue to rise.

For additional support in evaluating how LRP may strengthen your risk management strategy, contact your local ProAg independent crop insurance agent.