Livestock Risk Protection Provides a Floor

Livestock Risk Protection Provides a Floor

Although insurance in the grains industry has been around for a long time, the livestock industry is just getting familiar with the risk management tools that are now available for cattle producers.
Jason Ludeman with Crop Insurance Solutions shares how Livestock Risk Protection differs from traditional crop insurance products that many ag producers are familiar with
Ludeman: “There are two things that are different. Grain crop insurance — you pay at the end of the season, you pay in September. Feeder and fat cattle coverage you pay the day you insurance “X” amount of head. Grain insurance, if you have a policy you must insure every acre in the county under that entity. Whereas on this feeder cattle coverage — if you only want to insure 10 head tonight — it’s a phone call away. If you want to let the rest of the head open for another day - that is your purgative. Next week if the market is higher and you want to insure another 30 head — it’s a phone call away. You can really tailor this product right down to your operation. Its very flexible. If you want to retain heifers to grow your herd. You can still insure them. The policy never requires you to prove you sold the calves. If you decide to retain them, you are just protecting the market value of them for “X” amount of time.”
One of the beneficial aspects of the policy is that there is no money due when you complete the application.
Ludeman: “Once you start a policy is there is no money due. The only time premium is due is when you call and specifically put calves against the policy.”
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