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PRODUCTS

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LIVESTOCK PROTECTION

At RED RISK STRATEGIES, we provide comprehensive livestock & crop insurance products tailored to protect your farm from unexpected challenges. Whether you’re focused on managing yield risks, market volatility, or both, our solutions are designed to keep your operation secure and thriving.

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Allow 48 hours to process Livestock Applications before writing an endorsement for LRP, LGM or DRP. Endorsements must be signed by 8:25 AM the morning following the Endorsements Effective Date.

LIVESTOCK 
RISK
PROTECTION

LIVESTOCK
GROSS
MARGIN

DAIRY
REVENUE
PROTECTION

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QUOTES

WE WOULD LOVE TO HEAR FROM YOU

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LIVESTOCK RISK PROTECTION

LIVESTOCK RISK PROTECTION (LRP)

LRP is a federally subsidized insurance program designed to protect livestock producers against declines in market prices. It provides coverage for cattle, swine, and lamb producers by locking in a floor price without limiting upside potential if market prices rise.

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KEY FEATURES

  • Price Protection: Insures against price drops based on futures market prices.

  • Flexible Coverage Periods: Choose from various coverage periods (ranging from weeks to months) to match your marketing plans.

  • Livestock Eligibility: Available for feeder cattle, fed cattle, swine, and lamb.

  • No Upside Limits: If market prices increase, you still benefit from the higher prices at sale.

 

HOW IT WORKS

  • Producers select the coverage price, coverage period, and the number of head insured.

  • At the end of the coverage period, if the actual market price is lower than the coverage price, the policy pays the difference.

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LIVESTOCK GROSS MARGIN

LIVESTOCK GROSS MARGIN (LGM)

LGM is designed to protect livestock producers against the risk of declining gross margins—the difference between livestock prices and feed costs. It is available for cattle, swine, and dairy producers.

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KEY FEATURES

  • Margin Protection: Insures your expected gross margin (market value minus feed costs).

  • Customizable Plans: Tailor coverage to your operation’s size and needs.

  • Feed Price Coverage: Accounts for feed cost volatility, protecting your profit margin.

  • Monthly Coverage: Provides coverage based on your anticipated production and feed use.

 

HOW IT WORKS

  • Producers estimate their production (head of livestock or milk) and feed usage.

  • LGM uses futures prices for livestock and feed (e.g., corn, soybean meal) to calculate the expected margin.

  • If the actual gross margin falls below the insured margin, the policy pays the difference.

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DAIRY REVENUE PROTECTION

DAIRY REVENUE PROTECTION (DRP)

DRP is a revenue insurance program specifically designed for dairy producers, protecting against unexpected declines in milk revenue due to changes in milk prices, production, or both.

KEY FEATURES

  • Revenue Protection: Covers declines in revenue from milk sales based on futures market prices.

  • Customizable Coverage: Choose coverage levels ranging from 70% to 95% of expected revenue.

  • Multiple Pricing Options:

           - Class Pricing Option: Uses Class III (cheese) and Class IV (butter and milk powder) milk futures prices.

             - Component Pricing Option: Uses prices for milk components (butterfat, protein, and other solids).​

  • Flexibility: Coverage can be tailored to your production goals and risk tolerance.

 

HOW IT WORKS

  • Producers select a quarterly coverage period, the amount of milk production to insure, and their pricing option.

  • At the end of the quarter, if actual milk revenue is lower than the insured revenue, the policy pays the difference.

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