Livestock Risk Protection (LRP)
LRP provides livestock producers with protection against price declines in future livestock sales.
Livestock Gross Margin (LGM)
LGM provides protection against the declines in gross margins of livestock producers.
Protects against price declines of future hog sales
Maintain flexibility to participate in higher prices
Protection cost subsidized anywhere from 35% to 55%
Any owed premium not due until after coverage expiration
Coverage updates based on board prices
Offered 13-52 weeks out
Producers select:
Coverage settles daily into the CME Lean Hog Index
Effectively mitigates most producers' basis risk
LRP Calculator
Daily Summary
Weekly Newsletter
Livestock insurance program subsidized by the USDA’s Risk Management Agency.
Program offers producers with protection against declines in their future livestock sales. Producers select specific sales dates for their coverage and choose from 10 different offered protection prices. For each purchase, producers specific the exact head amount they would like to cover.
Premiums are subsidized anywhere between 35-55% based on selected coverage level.
LRP is offered every afternoon at approximately 3:30 PM CST. At this time, coverage dates and prices are released and based off that day’s CME Futures settlement.
The specific coverage dates, prices, and premiums are available for purchase until 8:25 AM CST the following morning.
LRP coverage settles against the CME Lean Hog Index on your coverage end date.
On the end date, indemnity is paid to the producer if coverage price is greater than CME LH Index.
On the end date, premium is due if CME LH Index is greater than the coverage price.
CIH considers LRP a risk management tool to use alongside a broader risk strategy. Using our data and analysis tools, we help integrate LRP into your overall risk management plan.
Quoting tools to help you quickly access updated LRP coverage levels and prices.
Daily analysis reports to compare LRP coverage against historical seasonals and basis levels.
Software to incorporate LRP positions with other hedge positions (futures, options, cash contracts, etc.).
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