In our last article, Crop Insurance Agent Cory Johnson answered a couple of frequently asked questions around Crop Insurance and the importance of protecting what matters most. Now you will have the opportunity to learn about Livestock Risk Protection Insurance (or LRP), which might be one of the best-kept secrets in the world of Crop Insurance. Why? Because it does not protect your crops, it protects your livestock (hence the name!)
However, before we dive into that, let’s get to know the agent that will be answering these questions, Paige Hrabe.
Meet Your Crop Insurance Agent: Paige Hrabe
Paige Hrabe joined High Plains Farm Credit as a Crop Insurance Agent in the Hays Office. From a young age growing up in Hays Paige knew two things; she wanted to be part of the agriculture industry and to be a K-State Wildcat. Growing up she took part in showing cattle all over the United States and she was involved in the local FFA chapter. Paige graduated from Kansas State University in 2017 with a Bachelor of Science in Animal Science. She received her insurance license in 2017. Prior to working for High Plains, she worked for an independent agency focusing on farmers and ranchers. Paige understands the hard work that goes into your operation and she strives to provide you the tools to protect it.
Paige’s husband, Cody, is an Ag Mechanic at Farm Implement and Supply. They have twin boys, Rylan and Braxton, who are a year old. When not working they are helping Cody’s family with their feedlot, running their cow/calf operation and farming. Paige also enjoys spending time with her family, whether that is in the kitchen helping her mom cook or heading out to the lake to spend time with her dad.
Now let’s look at (and answer) some of the common questions about LRP.
What is Livestock Risk Protection?
Livestock Risk Protection is a federally sponsored program that protects the producer in the event of a decline in the markets. LRP can be purchased for fed cattle, feeder cattle, swine, and lamb. One beneficial provision made earlier this year was adding new feeder cattle and swine types to allow livestock to be insured before birth. Furthermore, this gives producers another avenue when they do not have 40,000 to 50,000 pounds for a future and options.
How Does LRP Benefit Producers?
Just like Crop Insurance, LRP provides many benefits for producers and their operation, including:
- Guaranteed Price
- No bid/ask spread
- Limited basis risk coverage
- Any number of heads can be covered from one head up to the program’s limit.
- Coverage can be tailored to account for normal mortality
- Numerous endorsement period options
- Flexibility in allowing unforeseen market conditions
- Target weight range
- A wider range is available than Chicago Mercantile Exchange.
- LRP is an insurance policy, not a derivative
- Can be purchased from your trusted High Plains Farm Credit agent
- USDA Subsidy
- LRP premium from 20% to 35% based on coverage level.
- Payment due at the end of the insurance period
- Revision made this year. A benefit to producers by paying a premium after the sale.
Purchasing Livestock Risk Protection Insurance
LRP Insurance can be purchased throughout the year. The premium rates, coverage prices, and actual ending values are posted every day on the USDA Risk Management’s Agency (RMA) website. Coverage can be purchased every market-trading day after the markets close and ends the following day at 9:00 A.M. CST.
As you can see, there are many benefits for producers to have LRP Insurance. If you are interested in purchasing LRP or would like to learn more, please do not hesitate to contact Paige at 785-259-2898 or download this brochure. She is your Certified Livestock Insurance Agent that would welcome the opportunity to serve your insurance needs!
We will conclude our Crop Insurance staff introductions with finally yet importantly Barry Schwien!