Hedging and Basis Considerations For Feeder Cattle Livestock Rick Protection Insurance

Livestock Risk Protection (LRP) Insurance is a price-risk management tool available to feeder cattle producers with cattle in Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Wisconsin and Wyoming. LRP indemnifies against declines in feeder cattle sales prices, as determined by the Chicago Mercantile Exchange (CME) Feeder Cattle Cash Index, which represents a national average cash feeder steer price.