What is the Difference Between LRP and LGM Cattle Insurance?

ZISK
Apr 27
1 min read

With cash outlays for feeder cattle and replacement females at record highs, Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM) have become essential tools for managing financial risk. Recent USDA updates have made these subsidized programs more accessible, now allowing producers to insure unborn calves and set price floors for multiple stages of production. According to Iowa State University’s Patrick Wall, these tools are designed to protect equity without limiting the upside of a strengthening market.

“Cash outlay for feeders, replacement heifer calves, yearlings, bred heifers and bred cows is certainly higher than ever in all sectors,” says Wall, ISU Extension and outreach beef specialist, in a recent Growing Beef Newsletter article. “No doubt, two important programs supporting the market are Livestock Risk Protection and Livestock Gross Margin. Recent updates have made these programs more attractive and less expensive to a much wider audience in the supply chain.”

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