LRP Insurance Reminders

Since the subsidy on the Livestock Risk Protection (LRP) policy increased in 2022, Missouri livestock producers have responded by insuring a record number of cattle. LRP insurance gives producers the ability to put a price floor in place for livestock and is a great risk management tool to help navigate market uncertainties. Here are a few reminders for new LRP policyholders and seasoned customers alike:  

• RMA requires proof of ownership prior to an indemnity being paid or in the case of an audit. Sufficient documents include, but are not limited to, a bill of sale for covered livestock, a purchase receipt from prior owners, written statements from third parties who have visited the farm (i.e.: feed suppliers or veterinarians), financing/credit documents on which the insured livestock are used to secure the loan, or in some cases, a combination of the above. We encourage insureds to work with their agent to submit the appropriate documentation.
• LRP is NOT a death loss insurance. Insureds are encouraged to reduce the number of head they insure by their typical death loss, or they must submit a death loss notice to the approved insurance provider (AIP) within 72 hours of the death occurring.
• The RMA deadline to complete LRP insurance is 8:25 am each day after a price is issued. All policy documents must be signed and submitted to the insurance company prior to this time.  If you are considering writing LRP, please give your agent sufficient time so your coverage is successfully bound before the deadline.
• FCS Financial has an LRP quoter on our website at www.myfcsfinancial.com/insurance. This website gives all cattle producers the opportunity to see what the daily LRP prices are with the subsidy included.