The USDA recently updated the Livestock Risk Protection (LRP) insurance program. These changes will start in 2026.
These updates aim to give cattle producers more flexibility and better protection. However, they also raise new questions. Let’s look at what’s changing with LRP cattle insurance, what’s still unclear, and how you can prepare your operation.
What's Changing in LRP Insurance for 2026
These USDA-approved rule changes will be in effect for the 2026 crop year and beyond:
1. Forward Contracts Are Now Eligible
Cattle under a forward contract or purchase agreement can now be insured through LRP. This is a major shift from previous guidelines.
To qualify, producers must submit a copy of the contract and proof of delivery. This applies to both feeder and fed cattle.
What we know:
You will be able to lock in a price with a buyer and still protect your floor with LRP. That flexibility could significantly improve your ability to manage price risk while staying market-agile.
What we’re watching:
It’s still unclear how strict the documentation requirements will be—or how this change might impact complex ownership structures.
Additionally, if you're the seller and your calves are sold through a forward contract, you may not be eligible to insure those calves beyond the contract date. In that case, the latest Sales Closing Date could be the day the contract is locked in. This part of the rule is still being clarified, and we’re tracking updates closely.
2. New Livestock Types Eligible
- Unborn Calves (Feeder Cattle): You can now insure calves that will be sold within two weeks of birth.
- Cull Cows (Fed Cattle): LRP will offer limited-term (13-week) protection for dairy cull cows.
These additions offer more flexibility. They could help vertically integrated operations manage risk earlier or later in the production cycle.
3. Policy Timing Adjustments
- Termination date: Now September 30
- Premium billing: Now due on the first day of the second month following your policy’s end date
What this means:
You’ll have a little more time to settle premiums and wrap up paperwork after your policy ends.
4. Drought Exemption for Feeder Cattle
If drought conditions stop delivery or sale, a new exemption could help producers. This exemption is based on the Drought Severity and Coverage Index.
5. Expanded Recordkeeping Requirements
- You must document the sex of feeder cattle in marketing/purchase records.
- If someone purchases livestock and does not sell them within 60 days of the policy’s end, they must now keep additional records.
What Does This Mean for Ranchers?
These updates show that USDA is working to improve LRP cattle insurance. They want to give producers better coverage options for today’s market. But the increased flexibility comes with more rules.
If you plan to forward contract your calves, now is the time to talk with your agent. Discuss what documents you will need in 2026.
Want to Track Daily LRP Rates?
Ranchers who want to lock in price protection at the right time need access to daily market data. That’s why we built a free tool for producers to track LRP pricing in real-time.
Visit reddsummit.com/lrp to view current LRP insurance rates and market updates every day.
Common Questions We’re Getting
How does LRP insurance work with forward contracts now?
As of 2026, you can insure forward-contracted cattle through LRP as long as you meet the documentation requirements. You’ll need to show both a signed agreement and proof of delivery.
Can I insure unborn calves now?
As of 2026, yes. Unborn beef or beef/dairy cross calves that will be sold within two weeks of birth are now eligible under feeder cattle coverage.
Will the drought exemption help my operation?
If you live in a drought area and can’t deliver as planned, your LRP policy may provide flexibility. This relies on the Drought Monitor index.
Ready to Customize Your LRP Coverage?
If you need an LRP insurance quote now, Redd Summit can help. We’re not just an insurance provider—we’re ranchers too. And we know what it takes to protect a cattle operation when markets shift fast.
Start by tracking the market at reddsummit.com/lrp.
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