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Contract Specifications
When filing a Specific Coverage Endorsement (SCE), there is no minimum number of head that must be covered. If a person wanted, he or she could cover one head on an SCE. This feature makes LRP flexible, and is beneficial to producers with smaller herds. With futures or options hedging, one contract represents as many as 67 feeder cattle at 750 lb., 33 fed cattle at 1,200 lb., or 216 market hogs at 250 lb. on a live weight basis. A producer may not have that many livestock or may not wish to hedge that portion with one strategy or at one time. With LRP the producer can hedge smaller groups of livestock at various times. However, producers can still cover large groups if they want. The maximum number of head per SCE is 10,000 hogs, 2,000 fed cattle, or 1,000 feeder cattle. For a given crop year (July 1 to June 30), a producer can insure up to 32,000 hogs, 4,000 fed cattle, and 2,000 feeder cattle.
There are various endorsement lengths available for LRP. For fed cattle and feeder cattle, endorsements are available ranging from 13 to 52 weeks in one month increments. For swine, endorsements are available from 13 to 26 weeks in one month increments.
| Months | Weeks | Days | LRP Fed Cattle | LRP Feeder Cattle | LRP Swine |
| 3 | 13 | 91 |  | | |
| 4 | 17 | 119 | | | |
| 5 | 21 | 147 | | | |
| 6 | 26 | 182 | | | |
| 7 | 30 | 210 | | | |
| 8 | 34 | 238 | | | |
| 9 | 39 | 273 | | | |
| 10 | 43 | 301 | | | |
| 11 | 47 | 329 | | | |
| 12 | 52 | 364 | | | |
Note: LRP has been expanded to include lamb operations. Available through
USDA-RMA, LRP for Lamb provides protection against unexpected lamb
price declines. The insurance program is currently available to
livestock producers who own lambs in any of the following 27 states:
Arizona, California, Colorado, Iowa, Idaho, Illinois, Indiana, Kansas,
Michigan, Minnesota, Missouri, Montana, Nebraska, New Mexico, Nevada,
North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota,
Texas, Utah, Virginia, West Virginia, Wisconsin, and Wyoming. For
more information about LRP for Lamb, visit USDA-RMA's website or the American Sheep Industry
Association's website.
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