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ProAg Profit Protection for Your Livestock

Putting stability into market volatility

Declining market prices and shrinking margins are two of the primary threats to the profitability of ranchers and producers. ProAg proudly offers two policy options supported by the Federal Livestock Program: Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM). Which option is right for you?

Livestock Risk Protection (LRP)

Livestock Risk Protection (LRP) insures against declining market prices (based on USDA’s Agricultural Market Service).

  • Available for fed cattle, feeder cattle, swine and lamb.
  • Flexible coverage levels ranging from 70-100% of the expected ending market value of animals.
  • Peace of mind for producers to establish a floor price for protection while leaving upside price potential open.
  • No minimum head counts allow producers to tailor coverage to their operation.
  • Typically costs less than other coverage options and federal subsidies are also available.
  • Does not insure against death, loss, or any other loss or damage to the producer’s animals.
  • No margin calls or brokerage fees.
  • Flexibility of number of head that can be insured with increased limits.
  • Premiums are now due at the end of coverage period, allowing producers to budget more efficiently.

New for 2022!  Coverage can be extended to unborn calves. Producers can also sell livestock 60 days prior to the policy end date (previously 30 days).

Livestock Gross Margin (LGM)

Livestock Gross Margin (LGM) provides protection against the loss of gross margins caused by a drop in animal market prices or increase in feed market prices.

  • Available for fed cattle, feeder cattle, dairy and swine.
  • Provides protection against loss of gross margin (market value of livestock minus feed costs).
  • Tailored to your operation, including the amount of head to cover (with no minimum), months to target and deductible.
  • Futures prices are used to determine the expected gross margin and the actual gross margin.
  • No margin calls or brokerage fees.
  • Does not insure against death, loss, or any other loss or damage to the producer’s animals.
  • Increased federal subsidies are available.

New for 2022! Coverage can be purchased on a weekly basis instead of monthly, providing more timely and effective risk-management strategies.

Contact a trusted ProAg agent for more information about the Federal Livestock Program.

Livestock Infographic

Have questions? Check out our handy guide to compare livestock policies.