LRP-Lamb

 

ASI PRELIMINARY LRP-Lamb Coverage Prices and Rates

Livestock Risk Protection (LRP)-Lamb is designed to insure against unexpected declines in market prices of slaughter lambs. Sheep producers may select 13-week, 26-week or 39-week insurance periods as well as coverage levels ranging from 80 percent to 95 percent of the expected ending value to correspond with their general feeding, production and marketing practices.

Background

ASI and its development partners, Applied Analytics, the American Sheep and Goat Center, the Livestock Marketing Information Center and Virginia Tech, worked with the Federal Crop Insurance Corporation (FCIC) and USDA’s Risk Management Agency (RMA) to bring this much-needed insurance product to producers.

On September 28, 2006, the FCIC board of directors approved the expansion of the LRP insurance to include a lamb pilot program as requested by ASI. On July 18, 2007, the program details were finalized by USDA/RMA with sales beginning September 17, 2007. For more details refer to the RMA Informational Memorandum and the ASI press release.

In June 2009, the FCIC board of directors approved modifications to the LRP-Lamb insurance product. Click here to view the modifications.

On March 6, 2015, the FCIC board of directors approved a number of program changes to the LRP-Lamb plan of insurance including:

  • A new price prediction model;
  • A revised definition of “Insured Lambs”;
  • Removal of the 20-week endorsement;
  • Added language to prevent assignment of indemnities to businesses buying, selling, marketing, or packing lambs;
  • Changes to the daily and annual sales limit; and
  • Modifications to how the actual ending values are calculated.

Click here to access the Map Showing States in Pilot Project

USDA/RMA LRP-Lamb Materials (Click on the item listed to access)

Locate an insurance agent

RMA Fact Sheet – Livestock Risk Protection Lamb

LRP-Lamb Educational Materials:

Lamb Price Risk: LRP-Lamb and Basis Change (2007)
Prepared by ASI

Slaughter/Feeder Lamb Price Comparisons by Marketing Method (2008)
Prepared by ASI

Q & A: Market Prices and LRP-Lamb (2008)
By David Anderson, Professor and Extension Economist, Texas AgriLife Extension Service

LRP-Lamb in Wyoming: A Preliminary Review (2010)
By James B. Johnson, Montana State University and John P. Hewlett, University of Wyoming

LRP – A new price risk management tool for lamb producers (2017)
By Tim Petry, Livestock Economist, North Dakota State University

LRP-Lamb: MPR Definitions and Examples

 

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