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USDA’s livestock risk management product surges in demand

Marcia Burger, administrator for the USDA’s Risk Management Agency says its Livestock Risk Protection coverage (LRP) has grown significantly.

“LRP grew by 250 percent in two years,” said Marcia Bunger in a statement, adding that about 27 million head of cattle are insured.

Livestock risk management programs are not new – USDA’s Risk Management Agency was created more than 20 years ago. In 2019, the Agency increased premium subsidies and subsequently created tiered rates.

These are created with the goal of reducing losses from livestock price declines. Some factors have led to general price drops in the fall – these factors include environmental risks, disease risks and an overall softening economy. Such factors are likely contributors to the significant growth in popularity over the last two years.