Over the last few years, the Livestock Risk Protection (LRP) program has really taken off, especially for cattle producers in the South. What used to be a small, barely used safety net that covered just 71,000 head back in 2017 has exploded. By mid 2025, participation reached 7.5 million head. The last couple of years alone have been big, with nearly 5 million head in 2023 and over 6 million in 2024. Much of that growth comes from USDA changes that made the program cheaper and easier to use, along with the strong rebound in feeder and live cattle prices.
LRP works for just about any size operation. There is no minimum head required, so even if you have one cow, you can use it. It is also available for both cow calf and stocker operations. Building a marketing plan can be tough for many ranchers, even larger outfits, but the past few years have shown how important it is to have something in place to lock in margins, limit losses, and keep the business moving forward. With prices high and margins getting tighter for stockers and feedlots, managing price risk is more important than ever. LRP lets you lock in a floor price, protect profits, and get a little peace of mind in a market that can change quickly.
Figure 1: LRP Usage and Prices
This surge in participation did not just happen by chance. USDA made some key changes in 2019 and 2021 that lowered premiums and allowed payment at the end of the coverage period. That cash flow advantage can make a big difference compared to buying Put Options in the futures market. The program also became available nationwide, so producers in any state or county can take advantage of it.
Not all cattle categories in LRP have grown at the same pace. Steer Weight 2 still leads the way, averaging 854 pounds and making up about 42 percent of all transactions this year. Fed Cattle Steers and Heifers come next at around 1,480 pounds, making up 20 percent. Heifers Weight 2 follow close behind at 826 pounds and 17 percent.
One of the most noticeable changes this year is the growth in the Unborn category. These cattle now account for 11 percent of all insured head, nearly double the historical average. When combined with Steers and Heifers Category 1, which includes unborn cattle, the share has increased from 17 percent to 22 percent in the past year.
Figure 2: Beef LRP Usage per Animal Category
If you want to learn more, USDA’s Fact Sheet on fed cattle LRP is a helpful resource. If you are ready to look at buying price insurance, USDA’s website has a list of approved livestock agents and insurance providers who can help you get started.