Question: What happens if I decide not to sell cattle I’ve purchased LRP coverage on?
Answer: There is no obligation to sell cattle on which you have purchased LRP Feeder Cattle coverage. You may choose to retain ownership and still be eligible for the indemnity should the Actual End Value fall below your Coverage Price.
Question: Are there requirements regarding the timing of sale for cattle covered by LRP?
Answer: You may market cattle covered by LRP at any time, provided the transfer of ownership does not occur more than 60 days before the LRP Contract End Date. Livestock transferred more than 60 days before the Contract End Date would not be eligible for an indemnity, and the premium would still be owed.
Question: What if an animal covered under LRP dies before the Contract End Date?
Answer: If cattle perish and your AgRisk Advisor is notified within 72 hours of you learning of the death, the coverage remains in effect, and the producer is eligible for indemnities due to price loss, even on those animals which perished.
Question: Can I place LRP feeder cattle coverage before calves are born?
Answer: Yes! Calves can now be covered before hooves hit the ground. Purchasing a Specific Coverage Endorsement for unborn calves requires they are born prior to the Contract End Date and expected to weigh less than 600 lbs. at Contract End Date. Producers should keep breeding records or other documents which can verify ownership of calves in utero.
Question: Are cattle sold on video auction eligible for LRP coverage?
Answer: Yes! You can and should market your physical animals however you see fit. LRP does not change your ability to seek buyers to take delivery of your calves. Keep in mind that you will owe premiums but lose coverage on any animal transferred out of your ownership more than 60 days before the Contract End Date. Be sure to visit with your AgRisk Advisor about your marketing plans and delivery dates to avoid this mistake!
Question: Are there any additional benefits to younger producers interested in LRP coverage?
Answer: Younger producers and those who are new to agriculture may benefit from USDA’s Beginning Farmer and Rancher (BFR) program. In general, BFR insureds within their first five years of production will qualify for an additional 10% subsidy on LRP and other Federal Crop Insurance Corporation insurance plans.