Frequently Asked Questions (FAQs)

Cattle futures are CTFC-regulated, exchange trade contracts on the Chicago Mercantile Exchange (CME) that enable ranchers to protect their profit margins from declines in the cattle market by selling their livestock on a contractual basis. This means that a producer can sell their livestock at today’s price for their anticipated weight, but physically transfer ownership months down the line.

You can find Live Cattle (LE) prices on the Nasdaq.

Cattle prices fluctuate year to year, but February and March are traditionally the best times to sell calves.

You can invest in cattle futures by creating an account with the futures exchange through your broker and depositing the correct margin. Then you can start trading cattle futures contracts.

Coverage begins on January 1 and is allocated throughout the calendar year based on the historic rainfall data in your area.

Pasture, Rangeland, and Forage (PRF) is rainfall insurance. It protects your land from rainfall volatility and triggers indemnity payments when rainfall in your area is lower than average.

Livestock grazing is the most common use of rangeland. It is also the main management tool to maintain forage production and soil health.

Pasture, Rangeland, and Forage insurance protects your grazing land from losses due to rainfall volatility.

The main difference between pasture and rangeland lies in whether or not the grasses grown on the land are domesticated or native to the area. According to the EPA, pasture includes “lands that are primarily used for the production of adapted, domesticated forage plants for livestock”, while rangelands are primarily made up of grasses that are natural and native to the area.

No, crop insurance through PRF coverage protects you from rainfall volatility, not drought conditions.

LRP insurance through Redd Summit Advisors is available for the prices on fed and feeder cattle and feeder calves that haven’t hit the ground yet.

Because LRP insurance is self-funding, you’ll only owe a premium if the market prices rise above your floor price, or if your indemnity does not cover the balance in full. Premiums are not due until 30 days after the end of the endorsement period and are tax-deductible.

The prices insured through LRP insurance are based on the USDA’s Agricultural Market Service, which is updated almost daily.

The premium on your LRP policy varies depending on your operation. However, the USDA subsidy makes the US Government responsible for a portion of your premium. However, if the market price drops during your endorsement and your indemnities cover the premium in full, any additional payments go straight to you with no up-front or out-of-pocket cost.

LRP insurance covers the cattle market prices, not the cattle themselves. However, there are other insurance products that cover mortality as well.

Endorsements can last anywhere from 13-52 weeks. Producers are able to market their livestock within 60 days of the end of their endorsement period but are not required to actually sell their livestock insured.

Most insurance companies offer payment plans if a premium is owed.

Yes! We just need documentation of the lease agreement.

Sustainable grazing conditions are conditions where both livestock and wildlife can feed without detriment to habitat and soils. These are conditions where average long term forage volatility is reduced through quality management practices.

With Redd Summit's specialty software, you can be assured that your coverage is strategically placed to optimize your policy's performance and maximize its potential benefit to your operation.