Beef-on-Dairy Calves | Beef-on-Dairy Boom: USDA LRP Now Protects Cull Cow Revenue
- ZISK
- 2 hours ago
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Key updates to the Livestock Risk Protection program, effective July 1, 2025, offer dairy producers a new hedge against volatile slaughter and beef-on-dairy calf prices.
The U.S. dairy industry gains two crucial new risk management tools with significant updates to the USDA’s Livestock Risk Protection (LRP) program, effective for the 2026 crop year starting July 1, 2025. These modifications are specifically designed to address and mitigate the increasing price volatility associated with the beef marketing components of a dairy operation. These enhancements provide producers with more flexible and accessible options to manage risk and lock in revenue floor prices without tying up capital in margin calls.
The first major addition is specific LRP coverage for dairy cull cows marketed for slaughter, including breeds like Jerseys. Recognizing that cull cow prices are highly volatile and susceptible to seasonal swings, this new endorsement offers a short 13-week coverage period tailored to cows removed from the herd and sold for beef. This protection is vital for dairy operators, as cull cow revenue represents a meaningful and previously hard-to-hedge portion of their overall farm income against low slaughter prices.
October 10, 2025
