Livestock Risk Protection (LRP) has long been a go-to tool for beef producers. However, recent updates have now made it a valuable option for dairy farmers, too. With expanded coverage and flexibility, LRP now helps dairies manage price risk not just for milk, but for calves and cows as well.  

Chris Wilson, a Pinion Risk Management advisor and owner of Wilson Family Farms, puts it simply: 

“As a dairy farmer, I’m excited about the new Dairy LRP options because they offer a way to protect more of my operation’s revenue. These updates let us lock in strong cattle prices and manage risk beyond just milk — covering crossbred calves and cull cows, too. It’s a practical, real-world tool for today’s dairy herds.” 

Here’s what you need to know: 

What is LRP? 

Livestock Risk Protection (LRP) is a federally subsidized insurance program designed to protect livestock producers against unexpected price declines. It pays out if market prices fall below a selected coverage level. 

What is new for dairy producers? 

LRP has been expanded to include coverage for unborn calves and cull cows — a major win for dairy operations looking to protect more of their revenue streams. 

When do I need to sign up for LRP? 

There’s no deadline to enroll in LRP for the first time — you can sign up at any point. However, if you’re transferring existing LRP coverage, be aware that the deadline to do so is June 30.

When do calves need to be sold? 

To qualify for coverage, the physical sale of insured unborn livestock must occur within 14 calendar days before or after the animal’s actual birth date. 

What animals are eligible?
Beef-on-dairy crossbred calves and cull dairy cows. 

What crossbred calves are eligible?
Calves from dairy cows bred to beef bulls — like Angus, Simmental, Charolais, or Limousin. 

How does LRP benefit my dairy? 

LRP helps you: 

  • Lock in favorable market prices for calves and cull cows 
  • Protect against revenue loss from price drops 
  • Adds another layer of financial stability to your operation
     

Can I use LRP alongside Dairy Revenue Protection (DRP)?
Yes — LRP and DRP can work together to protect both cattle and milk income. 

Bottom Line 

If you’re a dairy producer looking to better manage market volatility, LRP is now a tool worth considering. Talk to your insurance advisor or risk management specialist to see how it fits into your risk management mix.